Shares of Canadian fintech DeFi Technologies rose almost 7% on the Nasdaq on Friday, August 22, after the company announced a share buyback. The management said the market price of DeFi stock does not always reflect its fair value.

Details

DeFi shares jumped nearly 7% on the Nasdaq on Friday to $2.24 per share after the board approved a share buyback program. Under the plan, the company will buy back shares through the Nasdaq, the Cboe exchange in Toronto where it is also listed, and on other Canadian alternative trading platforms.

The company explained that the market price of its shares does not always reflect the real value of the business and its prospects. According to the management, buying-back stock for cancellation serves shareholders’ interests and represents a rational use of available funds. DeFi reported it has about $19.8 million in cash.

The program will run for one year starting tomorrow, Tuesday, August 26. In total, DeFi may buy back up to 10% of its outstanding shares.

About DeFi Technologies

DeFi calls itself the first company to bridge traditional capital markets and decentralized finance. It operates through several subsidiaries:

  • Valour: issues exchange-traded products (ETPs). In July, its assets under management rose 23% month over month to $947 million.

  • Stillman Digital: an OTC digital asset trading platform for institutional clients.

  • AMINA Bank: a venture capital unit.

  • Other subsidiaries are preparing to launch a regulated real-asset tokenization platform in Kenya and regulated ETPs in Turkey.

For the second quarter, adjusted revenue rose nearly 27% year over year to $32.1 million. Net income was $17.4 million, compared with a loss of $6.1 million a year earlier.

“The flywheel is turning – each business line is reinforcing the others and compounding momentum,” said CEO Olivier Roussy Newton on the results.

Stock performance

Since the beginning of the year, DeFi shares are down 16%, but over the last 12 months they are up about 8%.

All five analysts covering the stock, according to MarketWatch, rate the stock a "buy." Their average target price of $5.89 per share implies upside of about 160% versus the last close.

The AI translation of this story was reviewed by a human editor.

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