This Top Small-Cap Pick for 2025 Is a Winner With $20 Million Bitcoin Stash
A top stock pick for 2025 has continued its growth with a lucrative plan for shareholders coming soon.
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My small-cap pick of the year, DeFi Technologies DEFTF, finished the first month of 2025 much like it ended 2024: growing assets, expanding its business and providing value for its shareholders.
Earlier this week, the company announced that its assets under management had surpassed $1 billion, growing by 23% monthly. Net inflows of $33.5 million continued the multi-year monthly trend of inflows. Additionally, DeFi successfully launched 20 new exchange-traded products (ETPs), its largest introduction in a single month.
Combined with its cash and USDT, DeFi has $63.1 million of cash, cash equivalents and digital assets against only $6 million of debt.
DeFi Technologies doesn’t get the attention it deserves when the market talks about digital treasuries. It should be mentioned, though, with 208.8 Bitcoin on the balance sheet, but DeFi doesn’t stop at Bitcoin. It also holds $3 million worth of Solana plus Ethereum, Avalanche, CORE, PolkaDot and a few more minor positions, along with Validator nodes on Solana, Cardano and CORE. That last one is important, and I’ll get why it matters in a minute.
Shares have been consolidating in a wide-wedge pattern with a series of higher lows and lower highs. The uptrend, dating back to November 2024, remains strong support. A close above $3.30 for consecutive days could be the technical catalyst DeFi needs to breakout higher.
The monthly corporate update wasn’t the biggest news of the week to come from the company. Management also announced a binding LOI with CoreFi Strategy and Orinswift Ventures to form a new company.
The new company will be seeded with $20 million of CORE token plus it will raise an additional $20 million. I estimate that DeFi Technologies will own 30% to 35% of this new company, which it will spin out to shareholders.
DeFi will only contribute licensed technology to the venture. That means DeFi shareholders will receive one-third ownership in a new company, potentially worth $120 million to $150 million, and won’t have to sacrifice assets from the DeFi balance sheet to do so.
I’ll stop short of calling it free money.
Still, it certainly appears to be immediately accretive to the company's book value until it is spun out, and beneficial to shareholders both before and after the spin-out.
At the time of publication, Byrne is a partner in a venture equity firm that has a business development relationship with Defi Technologies, and Byrne owns shares of DEFTF for his own account.
