EQS-News: DeFi Technologies Inc.
/ Key word(s): Acquisition
Toronto - March 7, 2025 - DeFi Technologies Inc. (the “Company” or “DeFi Technologies”) (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF), a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralised finance (“DeFi”), is pleased to announce announce that it has increased its stake in Neuronomics AG ("Neuronomics"), a Swiss asset management firm specializing in artificial intelligence and model-driven quantitative trading strategies, to 52.5% (the “Acquisition”) DeFi Technologies' Previous Investment and Strategic Expansion This Acquisition follows DeFi Technologies’ earlier subscription to a capital increase in Neuronomics, where the Company acquired a 10% stake. The Acquisition of the majority stake in Neuronomics further aligns with DeFi Technologies' strategy to expand its presence in artificial intelligence, asset management and trading sectors while diversifying its revenue streams. This strategic acquisition complements DeFi Technologies’ existing initiatives, including the DeFi Alpha arbitrage trading desk, which will benefit from Neuronomics’ technological expertise and market insights. Strategic Acquisition to Expand Capabilities Neuronomics, founded in Switzerland, has established itself as a leader in asset management by developing advanced quantitative trading strategies based on artificial intelligence (“AI”) and computational neuroscience. The firm holds an asset management license from the Swiss Financial Market Supervisory Authority (“FINMA”), enabling it to manage and administer financial assets on behalf of clients. Neuronomics’ research-driven approach focuses on two key areas: AI and Computational Neuroscience in Finance. Artificial Intelligence in Finance Neuronomics has pioneered the application of advanced AI models in financial settings, delivering AI strategies that outperform market index across all key metrics. The firm’s proprietary AI models combine multiple algorithms to enhance predictive accuracy and reduce model overfitting. Their approach translates AI model outputs into portfolio allocations, optimizing asset distribution to maximize returns while managing risk. Additionally, Neuronomics is at the forefront of customizing Large Language Models (“LLMs”) for predicting asset price developments based on real-time market news. This capability positions Neuronomics to identify emerging investment narratives well ahead of competitors, offering a distinct edge in the market). Computational Neuroscience in Finance Neuronomics also explores how human cognitive biases and emotional responses shape financial behavior, uncovering market inefficiencies that traditional strategies often overlook. Through computational neuroscience, Neuronomics models the neuronal processes of traders, identifying predictable market behaviors that result from overreactions or emotional trading. This approach has been particularly successful in the cryptocurrency market, which is highly influenced by emotional decision-making. Since launching their neurofinance-based crypto strategy in July 2020, Neuronomics has consistently delivered high risk-adjusted returns with minimal correlation to traditional markets Technological Innovation and Performance Excellence Neuronomics leverages cutting-edge AI technology to offer high risk-adjusted returns in the cryptocurrency market. Their latest developed AI-powered quantitative strategy, set to launch with DeFi Technologies, has demonstrated exceptional performance, with forward-testing analysis showing annual returns of 80% and significantly reduced drawdowns and volatility compared to passive market exposure. The AI-driven model removes human bias, enhances consistency, and dynamically adapts to evolving market conditions, ensuring sustained performance even in volatile markets. These strategies are built on a diversified, long-only crypto portfolio, rebalanced based on advanced AI models that identify market inefficiencies such as momentum and reversal opportunities. The AI-driven approach has consistently outperformed benchmarks like the CCi30 index, achieving a Sharpe Ratio greater than 1, underscoring its superior risk-adjusted returns. Their Neurofin strategy underscores this resilience by generating positive net returns amid a market downturn exceeding 20% over the past month. Neuronomics’ expertise in AI-driven strategies will significantly enhance DeFi Technologies' capabilities, especially as a complement to DeFi Alpha, its specialized arbitrage trading desk, which focuses on identifying and capitalizing on low-risk opportunities within the cryptocurrency market. Background on Management
Executive Comments Olivier Roussy Newton, Chief Executive Officer of DeFi Technologies, commented: “This acquisition marks a significant milestone for DeFi Technologies, not only enhancing our position in asset management but also expanding our capabilities in quantitative trading. Neuronomics' expertise in AI and computational neuroscience will complement our existing trading operations, particularly through DeFi Alpha. This acquisition is a natural extension of our growth strategy, which focuses on diversifying revenue streams, strengthening our trading desk, and enhancing our technological expertise in both traditional and decentralized finance markets.” Michael Kometer, Co-Founder of Neuronomics, added: "Partnering with DeFi Technologies presents a unique opportunity to scale our operations and further integrate our advanced AI capabilities and model-driven strategies within DeFi Technologies' broader ecosystem. Together, we will continue to drive innovation and deliver exceptional value to our clients, expanding our reach and operational impact." Acquisition Details In connection with the Acquisition, the Company issued 186,304 common shares of the Company (the "Payment Shares"), plus additional cash considerations, to the selling shareholders of Neuronomics. 152,433 of the Payment Shares are subject to a lock-up schedule, with 50% released in three months and the remainder released in six months. No finder fees were paid in connection with the Acquisition. Closing of the Acquisition is subject to the acceptance of Cboe Canada Exchange. About Neuronomics AG
About DeFi Technologies About Valour Valour Inc. and Valour Digital Securities Limited (together, “Valour”) issues exchange traded products (“ETPs”) that provide retail and institutional investors with simple and secure access to digital assets through their traditional bank accounts. Valour’s fully hedged digital asset ETPs feature low to zero management fees and are listed on various European exchanges, banks, and broker platforms. Valour operates as part of the asset management business line of DeFi Technologies Inc. For more information about Valour, to subscribe, or to receive updates, visit valour.com
Cautionary note regarding forward-looking information: THE CBOE CANADA EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE # # #
For further information, please contact: Olivier Roussy Newton
07.03.2025 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group. |
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