DeFi Technologies increases stake in Neuronomics AG | 2025-03-07 | Investing News

• Financial technology company DeFi Technologies (CBOE:DEFI) has increased its stake in Neuronomics AG to 52.5 per cent
• Neuronomics leverages cutting-edge AI technology to offer high risk-adjusted returns in the cryptocurrency market
• DeFi Technologies issued 186,304 common shares of the company, plus additional cash considerations, to the selling shareholders of Neuronomics
• DeFi Technologies stock (CBOE:DEFI) last traded at C$3.38

DeFi’s expansion

Financial technology company DeFi Technologies (CBOE:DEFI) has increased its stake in Neuronomics AG to 52.5 per cent.

This acquisition follows DeFi Technologies’ earlier investment, where the company acquired a 10 per cent stake in Neuronomics. The acquisition aligns with DeFi Technologies’ strategy to expand its presence in artificial intelligence, asset management, and trading sectors while diversifying its revenue streams. This strategic move complements DeFi Technologies’ existing initiatives, including the DeFi Alpha arbitrage trading desk, which will benefit from Neuronomics’ technological expertise and market insights.

Neuronomics’ expertise

Founded in Switzerland, Neuronomics AG has established itself as a leader in asset management by developing advanced quantitative trading strategies based on artificial intelligence 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 indices 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. Neuronomics is also at the forefront of customizing large language models 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 successful in the cryptocurrency market for the company, 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

Neuronomics leverages cutting-edge AI technology to offer high risk-adjusted returns in the cryptocurrency market. Their latest AI-powered quantitative strategy, set to launch with DeFi Technologies, has demonstrated exceptional performance, with forward-testing analysis showing annual returns of 80 per cent 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 per cent 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.

Acquisition details

In connection with the acquisition, DeFi Technologies issued 186,304 common shares of the company, 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 per cent 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

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.

About DeFi Technologies

A pioneering the convergence of traditional capital markets with decentralized finance (DeFi), DeFi Technologies Inc. works to bridge the gap between traditional capital markets and DeFi, offers fully hedged digital asset ETPs with low to zero management fees, with product listings across European exchanges, banks and broker platforms.

DeFi Technologies stock (CBOE:DEFI) last traded at C$3.38.

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