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DeFi Technologies Signs Letter of Intent to Acquire Minority Stake in Swiss Asset Management Firm Neuronomics AG

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DeFi Technologies (DEFTF) has signed a Letter of Intent to acquire a 10% stake in Neuronomics AG, a Swiss asset management firm specializing in AI-driven quantitative trading strategies. This strategic investment expands DeFi Technologies' presence in asset management and complements their DeFi Alpha trading desk.

Neuronomics, licensed by FINMA, combines artificial intelligence and computational neuroscience in finance. Their AI-powered strategy has shown annual returns of 80% with reduced volatility compared to passive market exposure. The firm's approach focuses on identifying market inefficiencies and emotional trading patterns, particularly in cryptocurrency markets.

DeFi Technologies (DEFTF) ha firmato una Lettera di Intenti per acquisire una partecipazione del 10% in Neuronomics AG, una società svizzera di gestione patrimoniale specializzata in strategie di trading quantitativo basate su intelligenza artificiale. Questo investimento strategico amplia la presenza di DeFi Technologies nella gestione patrimoniale e completa il loro desk di trading DeFi Alpha.

Neuronomics, autorizzata dalla FINMA, combina intelligenza artificiale e neuroscienze computazionali in ambito finanziario. La loro strategia alimentata da AI ha mostrato rendimenti annuali dell'80% con una minore volatilità rispetto all'esposizione passiva al mercato. L'approccio dell'azienda si concentra sull'identificazione delle inefficienze di mercato e dei modelli di trading emotivi, in particolare nei mercati delle criptovalute.

DeFi Technologies (DEFTF) ha firmado una Carta de Intenciones para adquirir una participación del 10% en Neuronomics AG, una firma suiza de gestión de activos especializada en estrategias de trading cuantitativo impulsadas por inteligencia artificial. Esta inversión estratégica expande la presencia de DeFi Technologies en la gestión de activos y complementa su escritorio de trading DeFi Alpha.

Neuronomics, licenciado por la FINMA, combina inteligencia artificial y neurociencia computacional en finanzas. Su estrategia impulsada por AI ha mostrado rendimientos anuales del 80% con menor volatilidad en comparación con la exposición pasiva al mercado. El enfoque de la firma se centra en identificar ineficiencias del mercado y patrones de trading emocionales, especialmente en los mercados de criptomonedas.

DeFi Technologies (DEFTF)는 스위스 자산 관리 회사인 Neuronomics AG의 10% 지분 인수를 위한 의향서를 체결했습니다. 이 전략적 투자는 DeFi Technologies의 자산 관리 분야에서의 입지를 확장하고 DeFi Alpha 트레이딩 데스크를 보완합니다.

Neuronomics는 FINMA의 라이센스를 보유하고 있으며, 금융에서 인공지능과 계산 신경과학을 결합합니다. 그들의 AI 기반 전략은 수동 시장 노출에 비해 감소된 변동성과 함께 연간 80%의 수익률을 보여주었습니다. 이 회사의 접근 방식은 특히 암호화폐 시장에서 시장 비효율성과 감정적 거래 패턴을 식별하는 데 중점을 둡니다.

DeFi Technologies (DEFTF) a signé une Lettre d'Intention pour acquérir une participation de 10 % dans Neuronomics AG, une société suisse de gestion d'actifs spécialisée dans les stratégies de trading quantitatif pilotées par l'intelligence artificielle. Cet investissement stratégique élargit la présence de DeFi Technologies dans la gestion d'actifs et complète leur bureau de trading DeFi Alpha.

Neuronomics, licenciée par la FINMA, allie intelligence artificielle et neurosciences computationnelles dans le domaine financier. Leur stratégie alimentée par l'IA a montré des rendements annuels de 80 % avec une volatilité réduite par rapport à l'exposition passive au marché. L'approche de l'entreprise se concentre sur l'identification des inefficacités du marché et des schémas de trading émotionnels, en particulier sur les marchés des cryptomonnaies.

DeFi Technologies (DEFTF) hat einen Absichtserklärung unterzeichnet, um eine 10%ige Beteiligung an Neuronomics AG, einer Schweizer Vermögensverwaltungsgesellschaft, die sich auf KI-gesteuerte quantitative Handelsstrategien spezialisiert hat, zu erwerben. Diese strategische Investition erweitert die Präsenz von DeFi Technologies im Bereich der Vermögensverwaltung und ergänzt ihren DeFi Alpha Trading Desk.

Neuronomics, lizenziert von der FINMA, kombiniert künstliche Intelligenz und rechnerische Neurowissenschaften in der Finanzwelt. Ihre KI-gesteuerte Strategie hat jährliche Renditen von 80% mit reduzierter Volatilität im Vergleich zur passiven Marktexposition gezeigt. Der Ansatz des Unternehmens konzentriert sich auf die Identifizierung von Marktineffizienzen und emotionalen Handelsmustern, insbesondere auf dem Kryptowährungsmarkt.

Positive
  • Acquisition provides access to FINMA-licensed asset management capabilities
  • AI-driven strategy demonstrated 80% annual returns with reduced volatility
  • Diversification of revenue streams through complementary trading capabilities
  • Technology integration enhances DeFi Alpha trading desk capabilities
Negative
  • Minority stake (10%) limits control over operations
  • Investment subject to regulatory approvals which may delay completion
  • DeFi Technologies Signs LOI for 10% Stake in Neuronomics AG: DeFi Technologies will acquire a minority stake in Neuronomics AG, a Swiss asset management firm specializing in AI-driven quantitative trading strategies.

  • Strategic Expansion in Asset Management and Trading: This acquisition strengthens DeFi Technologies' asset management and trading capabilities, diversifying revenue streams while complementing DeFi Alpha, the Company's specialized arbitrage trading desk.

  • Technological Innovation and Performance Excellence: Neuronomics utilizes advanced AI-driven quantitative strategies that have delivered exceptional risk-adjusted performance. By significantly outperforming benchmarks, Neuronomics positions DeFi Technologies for continued growth in the asset management sector and the wider cryptocurrency market.

TORONTO, Dec. 10, 2024 /PRNewswire/ - 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 the acquisition of a minority  stake in Neuronomics AG ("Neuronomics"), a Swiss asset management firm specializing in quantitative trading strategies powered by artificial intelligence, computational neuroscience, and quantitative finance.

Under the terms of the LOI, DeFi Technologies will increase its stake in Neuronomics by subscribing for 10% of the issued and outstanding securities of Neuronomics (the "Investment"). This strategic investment aligns with DeFi Technologies' goals of expanding its presence in the asset management space, leveraging Neuronomics' technological innovations and market expertise. DeFi Technologies had previously acquired a toe-hold investment in Neuronomics.

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 high risk-adjusted returns. The firm's proprietary AI models combine multiple algorithms to enhance predictive accuracy and reduce model overfitting. Their thermodynamics-based portfolio weighting 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 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 weekly 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. 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.

Strategy Performance (CNW Group/DeFi Technologies Inc.)

Strategy Performance (CNW Group/DeFi Technologies Inc.)

Background on Management 

  • Dr. Lorric Ziegler, Partner, brings a strong background in AI and computational neuroscience, with a PhD from EPFL and experience in machine learning and AI applications at prominent Swiss investment firms. Since joining Neuronomics in 2021, Dr. Ziegler has optimized the firm's IT, asset management, and risk management processes.

  • Dr. Michael Kometer, Co-Founder and Board Member, holds a PhD from the University of Zurich and is an expert in algorithmic trading and emotional decision-making in finance. His research has been widely cited, and his work integrates neuroscience, AI, and finance to develop cutting-edge investment strategies.

  • Patrick Schuppli, Partner, manages business operations and relationships at Neuronomics. With a Master's in Business and Economics from the University of Basel, his expertise in commodity trading and blockchain-based projects has been pivotal in driving business growth.

  • Gilles Ramstein, AI Scientist, specializes in machine learning and data science. His innovative work in automating financial processes and developing AI-driven strategies has significantly enhanced the firm's predictive models.

Executive Comments

Olivier Roussy Newton, Chief Executive Officer of DeFi Technologies, commented: "This strategic investment marks an exciting step for DeFi Technologies as we expand our presence in both asset management and trading. We have been a shareholder and partner of Neuronomics since 2023, and can see how Neuronomics' AI-driven quantitative trading strategies perfectly complement our existing capabilities and align with our broader goals. The Investment will deepen the relationship between Neuronomics and DeFi Technologies and will  not only enhance our expertise in the trading sector but also diversifies our revenue streams, especially through DeFi Alpha—our specialized arbitrage trading desk that focuses on low-risk opportunities in the cryptocurrency market. By integrating Neuronomics' cutting-edge strategies, we will strengthen our ability to deliver consistent, market-neutral returns while further advancing our position in both traditional and decentralized finance."

Michael Kometer, Co-Founder of Neuronomics, added: "Partnering with DeFi Technologies presents a unique opportunity to scale our operations and continue driving innovation in quantitative trading. We believe this collaboration will bring tremendous value to our clients as we integrate Neuronomics' solutions into DeFi Technologies' comprehensive ecosystem."

Closing and Next Steps

The Investment will be subject to customary conditions and regulatory approvals.

About Neuronomics AG
Neuronomics AG is a Swiss asset management firm specializing in AI-powered quantitative trading strategies. By integrating artificial intelligence, computational neuroscience and quantitative finance, Neuronomics delivers cutting-edge solutions that drive superior risk-adjusted performance in financial markets. For more information please visit https://www.neuronomics.com/

About DeFi Technologies
DeFi Technologies Inc. (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF) is a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralized finance (DeFi). With a dedicated focus on industry-leading Web3 technologies, DeFi Technologies aims to provide widespread investor access to the future of finance. Backed by an esteemed team of experts with extensive experience in financial markets and digital assets, we are committed to revolutionising the way individuals and institutions interact with the evolving financial ecosystem. Follow DeFi Technologies on Linkedin and Twitter, and for more details, visit https://defi.tech/ 

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: 
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to statements regarding the closing of the Investment; the business and growth opportunities of Neuronomics; synergies realized from the Investment; ability of DeFi Technologies to utilize Neuronomic's trading strategies; the regulatory environment with respect to the growth and adoption of decentralized finance and digital assets; the pursuit by the Company and its subsidiaries of business opportunities; and the merits or potential returns of any such opportunities. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, but is not limited to the  growth and development of decentralised finance and digital asset sector; rules and regulations with respect to decentralised finance and digital assets; general business, economic, competitive, political and social uncertainties. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

THE CBOE CANADA EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

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SOURCE DeFi Technologies Inc.

FAQ

What percentage stake is DeFi Technologies (DEFTF) acquiring in Neuronomics AG?

DeFi Technologies is acquiring a 10% stake in Neuronomics AG through this investment.

What are the reported returns of Neuronomics AG's AI-powered trading strategy?

Neuronomics' AI-powered quantitative strategy has demonstrated annual returns of 80% with reduced drawdowns and volatility compared to passive market exposure.

What regulatory license does Neuronomics AG hold?

Neuronomics holds an asset management license from the Swiss Financial Market Supervisory Authority (FINMA).

How will this acquisition benefit DeFi Technologies' (DEFTF) existing operations?

The acquisition will enhance DeFi Technologies' asset management capabilities, diversify revenue streams, and complement their DeFi Alpha arbitrage trading desk.

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