May 27, 2022
The first quarter 2022
(compared to first quarter 2021)
- First quarter Revenues amounted to kSEK 3,766 (2,273)
- Operating profit/loss (EBIT) totaled kSEK -6,175 (1,802)
- Result for the period was kSEK -4,622 (1,802)
- Cash flow from operating activities amounted to kSEK -6,376 (-1,386)
- Earnings per share before and after dilution amounted to SEK -0,11 (1,80)
- Cash and cash equivalents at the end of the period was kSEK 23,562 (1,028)
Highlights from the Financial Overview
Revenue increased to kSEK 3,766 (2,2735), of which 346.1 (2,273.5) from Fund management and 3,419.8 (—) from Coin360. The high volatility in earnings from fund management is a result of fund managed being long-biased. This means that significant performance fees are only generated when digital asset markets go up enough to recoup the losses from a recent drawdown.
Highlights from the CEO’s address
So far this year, the environment has been very challenging for traditional- and digital assets. Bitcoin is down close to 60% from the all-time high in late 2021 and many leading Altcoins are down 80% — 90% over the same period. It is important to understand that, throughout the history of digital assets, we have seen swings like this many times before and the markets will recover. The time to build is during bear-cycles; we cannot control digital asset prices or the sentiment in equity markets, but we can control what we work on during challenging times.
We have hired a CEO of asset management (starting in July 2022) and a team of senior business developers in the US, Europe and APAC (Asia Pacific) on an employee and placement basis (started in April). The CEO and the business developers will have one focus only and that is to raise as much AUM (assets under management) as possible for our fund products.
Hilbert will launch a new algo-traded fund called Hilbert V1 during Q3 which will be structured more towards the market-neutral spectrum, having only 30% directionality in the market and which, to a higher degree, is isolating the pure volatility trading/harvesting that we also run in Hilbert Digital Asset Fund. The marketing campaign for the Hilbert V1 fund has started and we are targeting $20 million at launch and $100 million in AUM before the end of this year.
So far, Coin360 has been profitable since day one. The work of rewriting the backend for higher speed and scalability was essential and is now largely completed. We will now start rolling out new features in Q3 and a subscription service in Q4. The new features include on-chain data, NFT visualisations, portfolio tools etc. Earlier this year, analytics sites Dune Analytics and Nansen obtained valuations of $1 billion and $750 million, respectively. Both Dune and Nansen are in Coin360’s peer group and have significantly lower traffic numbers. By adding new features and a new subscription revenue stream, the objective is to surpass the $1 billion valuation mark over the next 12 months.
HAYVN’s revenue originates from their OTC trading- and custody services in digital assets. The firm has now been granted the most comprehensive regulatory licenses in both Switzerland and Abu Dhabi. HAYVN is currently doing a series B round with a target valuation of $400 million. Hilbert Group participated in the series A round end of last year and acquired a 2.7% stake at a $30 million valuation.
For further information, please contact:
CEO Hilbert Group AB
+46 (0)8 502 353 00