Why DeFi Technologies (NEOE:DEFI) Is Down 9.4% After Governance Turmoil Meets Brazil Crypto ETP Push - And What's Next

• In December 2025, DeFi Technologies’ subsidiary Valour began listing five BRL-denominated crypto ETPs on Brazil’s B3 exchange, while the parent company simultaneously disclosed share ownership imbalances, regulatory review by the Ontario Securities Commission, multiple securities class actions, and the immediate resignation of director Stefan Hascoet.
• These overlapping legal, regulatory, and governance issues are emerging just as DeFi Technologies attempts to broaden its global footprint in listed digital-asset products, putting its growth-focused story under closer investor scrutiny.
• We’ll now examine how the share ownership discrepancies and related regulatory scrutiny may reshape DeFi Technologies’ previously optimistic investment narrative.

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DeFi Technologies Investment Narrative Recap

To own DeFi Technologies, you need to believe that its ETP platform and DeFi Alpha strategies can convert crypto adoption into durable, fee-based revenue despite volatility and regulatory complexity. Right now, the key near term catalyst is execution on higher margin DeFi Alpha trades, while the biggest risk is mounting legal and regulatory scrutiny around disclosures and share ownership, which could distract management and constrain growth. The December news meaningfully intensifies that governance and compliance risk.

The most relevant development for this catalyst is the Ontario Securities Commission’s review of DeFi Technologies’ share ownership and depository imbalances, alongside the company’s ongoing reconciliation efforts with broker dealers. This goes directly to the risk that unresolved market structure and regulatory issues increase compliance burdens, hurt institutional confidence, and ultimately affect how much capital is willing to back the company’s international expansion story, even as new products like the Brazil-listed ETPs roll out.

Yet beneath the product expansion headlines, investors should be aware that ongoing securities class actions and OSC scrutiny could...

Read the full narrative on DeFi Technologies (it's free!)

DeFi Technologies' narrative projects $324.7 million revenue and $269.6 million earnings by 2028. This requires 62.4% yearly revenue growth and about a $250 million earnings increase from $19.4 million today.

Uncover how DeFi Technologies' forecasts yield a CA$5.60 fair value, a 344% upside to its current price.

Exploring Other Perspectives

Seven members of the Simply Wall St Community currently see fair value for DeFi Technologies between C$1.24 and C$6.70, reflecting sharply different expectations. You should weigh these against the emerging legal and regulatory overhang, which could influence how comfortably the business can pursue its growth initiatives and sustain investor confidence.

Explore 7 other fair value estimates on DeFi Technologies - why the stock might be worth over 5x more than the current price!

Build Your Own DeFi Technologies Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your DeFi Technologies research is our analysis highlighting 2 key rewards and 4 important warning signs that could impact your investment decision.
• Our free DeFi Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate DeFi Technologies' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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