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Shareholder update

Share price
First, I want to take the opportunity to assure all shareholders that management and the team take the share price decline very seriously. We are all shareholders ourselves, and we feel the impact alongside you.

Our share price has always been highly correlated with crypto market levels and activity, which, in turn, correlate strongly with our assets under management—the dominant driver of revenues.

In my view, the primary drivers of the share price performance are a very weak crypto market, with altcoins hit significantly harder, sector rotation out of crypto equities, and technical factors mostly related to our capital raise.

Technical factors were one-off; our product innovation is steadily making us more unique and competitive. When the market turns, the business is primed to deliver even higher output than during the last crypto bull market, with even greater asymmetric upside.

Our core business has evolved and continues to become more diversified, scalable, and efficient. Our monetization rate continues to improve on an asset basis, while new, innovative products and business lines are set to go live soon.

It is certainly frustrating when launch deadlines are extended. This is almost exclusively due to a particularly difficult regulatory landscape in the EU —a reality in this sector since the company's founding. As such, it also raises the barrier to entry for competitors who lack our hard-won experience navigating our specific markets.

We saw a similar dynamic in the last cycle, when the company traded below $0.10 during the depths of the 2022/2023 bear market. At that time, the business was far less mature, Stillman was not part of the company, and DeFi Technologies carried more than $40 million of debt. During that period, management, insiders, friends, and family, myself included, helped bootstrap the company with millions of dollars of capital to keep building through the downturn.

Today, the company is considerably better positioned in this crypto bear market than it was in the previous cycle. DeFi Technologies delivered record revenue and net income in 2025, has a fortress balance sheet of approximately $150 million as of the end of Q1, is profitable, has effectively zero debt, and now operates a more diversified platform across Valour and Stillman.

Operations
We continue to invest across our core business areas while building new ones, and we are aggressively identifying and reducing suboptimal costs to lower our break-even level. While the depressed crypto market and high Bitcoin dominance put revenues under pressure, the competitiveness of our operation is only growing stronger, and we are using the weak market regime to strengthen our underlying business.

Our first hedge fund is expected to launch very soon, with more to follow, pending onboarding with one additional trading counterpart, which is now underway.

We plan to scale arbitrage strategies in the second half of the year.

Finansinspektionen, the Swedish FSA, denied approval for the UCITS structure for crypto-related assets; we have appealed the decision and are working to have it overturned. For the benefit of our investors, we aimed to base the first UCITS fund in our main market. We are now instead establishing a UCITS platform elsewhere in the EU as it’s uncertain how long the appeal process will be. We will soon update on the new timeline.

The Valour Custody platform is advancing, with a clearer launch target in the second half of the year, enabling new products and services to be built on top of it.

Stillman Digital’s growth continues despite the market climate, onboarding more and larger clients each quarter, pacing for a record year of revenue.

Crypto winters present significant opportunities for us, backed by our strong balance sheet and scalable platform. We are actively sourcing and pursuing high-value, large-scale acquisitions. It is hard to predict when any transactions may be announced, as we set a high bar for closing deals based on our criteria for shareholder value creation, but the quality and quantity of interesting opportunities are unprecedented.

AI has proven highly effective in optimizing the business, is now integral to daily operations, and will soon contribute directly to revenue generation. You will also see new AI-related investment products in our core markets, complementing our crypto product range.

Furthermore, the team behind our first fund has effectively integrated AI for many years, developing and deploying automated, AI-driven trading algorithms.

We have had net inflows in Vaopur’s ETP’s year to date, which I see as a sign of strength in the current environment. We have also concluded two large, successful brand-building campaigns in our core market, in addition to our ongoing marketing and PR activities.

Some shareholders have voiced concerns regarding the company adding a potential share consolidation to its toolbox. We must maintain maximum strategic optionality for a worst-case scenario—anything less would constitute mismanagement. We have no plans to do a reverse split if not deemed necessary and will use that option only if needed to increase the attractiveness of the share and to be 100% certain we will comply with the Nasdaq framework. It's also notable that 73% of shareholders voted in favor of the company having the option to undertake a share consolidation if needed.

I have never been more confident in our trajectory. The lesson I have learned through all the cycles since my first venture in 2014 is that success in the strong market regimes is defined by how hard we work in the downturns. Thank you for your continued support and patience. I understand these are trying times for all investors, but we are working diligently every day to build a world-class company and rebuild shareholder trust and value.

I look forward to updating you on our progress in the quarters ahead.