Nextbigone
4 days ago
🚀 Bitcoin Hits New All-Time High — Why Metalpha (MATH) Is the Smartest BTC Proxy Stock Bet Today
Bitcoin surged past $112,000 on July 9, 2025, setting a new all-time high and unleashing renewed optimism in the crypto market. But while headlines focused on Bitcoin ETFs and major crypto equities like Coinbase (COIN) and MicroStrategy (MSTR), the real alpha opportunity lies in Metalpha Technology Ltd (NASDAQ: MATH) — a rapidly scaling, under-the-radar derivatives powerhouse that offers the highest leverage to BTC upside with reduced downside risk.
---
🔍 Why MATH Is the Superior Bitcoin Proxy Stock
While traditional BTC proxy stocks like MSTR depend largely on holding Bitcoin on the balance sheet, MATH benefits from the massive growth in crypto derivatives, which are 20–40x larger than the spot market in volume. Here’s what makes it stand out:
🧠 Business Model Edge
Metalpha specializes in structured crypto derivatives and institutional hedging products, serving miners, funds, and high-net-worth individuals.
Unlike firms that hold BTC as an asset (and thus suffer during BTC drawdowns), MATH earns from trading spreads, structuring fees, and recurring flows, making it cash-flow positive in both bull and bear markets.
🔗 Deep Ties to Bitmain and Antalpha
MATH is strategically aligned with Bitmain, the world's leading BTC mining equipment provider, and Antalpha, its sister company, which recently IPO’d. This ecosystem grants MATH privileged client flow and early-stage deal access in crypto infrastructure.
💰 Earnings Power
Based on the latest guidance, MATH is on track to earn over $0.50 per share in EPS for the fiscal year ending March 2025 — an astounding achievement compared to its current valuation.
At just a 30x earnings multiple, the stock could trade between $15–$20, representing 5x–10x upside from recent levels below $3.
---
📈 BTC All-Time High: Institutional Demand Surging
Bitcoin's breakout has been driven by:
Institutional ETF inflows (IBIT, ARKB, GBTC) at record levels
Fed signals of rate cuts, weakening the USD and reigniting risk-on sentiment
Rumors of sovereign BTC adoption strategies and central bank interest
Massive short liquidations exceeding $340 million, reinforcing upward pressure
But not all proxy stocks benefit equally.
📉 The Problem with the “Treasury Strategy” (e.g., MSTR)
MSTR and similar firms are leveraged bets on BTC price only. If BTC stalls or corrects, these stocks suffer. They lack a diversified business model, and their valuation depends on BTC appreciation alone.
---
🔑 MATH: The Leverage Without the Risk
As BTC volumes rise, so do derivatives and hedging demand — MATH’s core revenue drivers.
Regulatory clarity across Hong Kong, Singapore, and Europe is giving MATH an open runway to expand globally.
With a second listing in Germany (symbol D92) and growing institutional visibility, MATH is perfectly positioned for multiple expansion.
---
🧭 Investment Outlook
Factor MATH MSTR COIN
BTC exposure High (via derivatives) Extreme (via BTC holdings) Medium (via trading volumes)Recurring revenue ✅ ❌ ✅Cash flow in bear markets ✅ ❌ MixedInstitutional ties Bitmain, Antalpha None BlackRock ETFs, US retailValuation upside 5x–10x Limited Moderate
---
📣 Final Takeaway
Bitcoin may have hit a new high, but for equity investors, the best asymmetric reward lies not in COIN or MSTR — but in MATH. With unmatched leverage to BTC transaction growth, strong earnings momentum, and global infrastructure expansion, Metalpha Technology Ltd is the most overlooked crypto equity gem on Nasdaq.
If BTC goes to $200K, MATH doesn’t double — it could go up 5x–10x.
Nextbigone
2 weeks ago
Metalpha Technology Holding Limited (Nasdaq: MATH) is considered a
superior investment opportunity compared to Bitmine Immersion Technologies, particularly for
investors interested in the crypto market. Here are the key points:
1. Leverage Without Liquidation Risk:
• Bitmine's strategy is a direct bet on ETH, which is volatile and price-dependent.
• Metalpha generates income from the crypto derivatives market, which is significantly
larger than the spot market. Their revenue is not solely dependent on token prices but
also on volumes, structures, and volatility, providing asymmetrical upside and downside
control.
2. Proven Growth and Earnings Guidance:
• Metalpha has guided for earnings of over $0.50 per share for the fiscal year ending
March 31, 2025.
• This guidance is supported by growth in notional derivative volume, wealth
management income, and disciplined risk management.
• Using a 30x P/E multiple, common for high-growth fintech and crypto firms, Metalpha's
share price could target between $15 to $20, with potential upside to $30+ in a bull
cycle.
• At the current share price of around $3, this represents a potential 5x to 10x upside.
3. Versatile Business Model:
• Metalpha's product suite includes accumulators, snowballs, and hedged yield products,
generating fees regardless of market direction.
• Their derivatives desk serves family offices, miners, and high-net-worth clients seeking
advanced crypto exposure with hedged risk.
4. Institutional Credibility and Regulatory Advantage:
• Metalpha is licensed under Hong Kong SFC (Type 4 & 9) for digital asset advisory.
• They have partnerships with the Litecoin Foundation, ParaX, and Middle East wealth
channels.
• Strategic links to Antalpha and indirect ties to Bitmain enhance their market position.
5. Strategic Inflection Point:
• With fiscal year-end results expected soon and EPS guidance already public, broader
analyst coverage is anticipated.
• A Frankfurt listing could open doors to European investor inflows.
• Strong macro backdrop for BTC and ETH adoption and growing interest in derivatives as
the next evolution of crypto investing.Summary Comparison: Metalpha vs. Bitmine ETH Play
Feature Bitmine (ETH Treasury) Metalpha (Crypto Derivatives)
Revenue Model Passive ETH holding Fee-based, active management
Earnings Visibility None Guided $0.50+ EPS (FY25)
Market Focus ETH price bet Multi-token derivatives growth
Risk Exposure High volatility Structured, hedged exposure
Valuation Potential Speculative $15–$30 price target on 30x P/E
Current Price ~$3 ~$3
Conclusion: Bitmine’s ETH play is a high-risk treasury bet with full exposure to downside volatility.
Metalpha, however, offers a profitable, scalable fintech model with derivatives leverage, downside
protection, real earnings, institutional validation, and regulatory coverage. With guided EPS of $0.50 and
a 30x multiple, Metalpha's share price target is $15–$30, making it an attractive leveraged crypto equity
trade.
Nextbigone
1 month ago
MATHPR NewswireHONG KONG, June 12, 2025HONG KONG, June 12, 2025 /PRNewswire/ -- Metalpha Technology Holding Limited (Nasdaq: MATH) ("Metalpha" or the "Company"), a leading digital asset-focused wealth management company, today announced the successful completion of the LSQ Investment Fund SPC – Next Generation Fund I SP (the "Fund"), which delivered exceptional results over its two-year investment period.The Fund, managed by Metalpha's SFC Type 9 licensed subsidiary LSQ Capital Limited, commenced trading activities in late March 2023. From late March 2023 to March 2025, the Fund achieved a net asset value (NAV) performance of 375.5%, outperforming BTC by 67.3%, as tracked under by Bloomberg (ticker: LSQNEXI)."The performance of Fund exemplifies our commitment to delivering strong investment outcomes through deep market insight, prudent risk management, and close collaboration across our partners," said Mr. Adrian Wang, CEO of Metalpha. "We're proud to have created significant value for our investors and will continue to pursue innovative and compliant solutions in the digital asset space."Following the conclusion of the Fund's lifecycle, Metalpha is glad to transfer all of its 40% equity interest in NextGen Digital Venture Limited to Mr. Jason Huang, a key contributor to the Fund's success. The Company believes this transition will further strengthen the strategic cooperation between the Company and NextGen and ensure continued excellence in fund management and innovation. The proposed transaction and the terms of which have been reviewed and approved by the board of directors of the Company."We extend our sincere congratulations to Jason and wish him every success in leading NextGen Digital Venture Limited toward greater achievements in future," added Mr. Wang.Metalpha Technology Holding Limited (Nasdaq: MATH), through its subsidiaries, is dedicated to providing digital asset-focused wealth management services with a full-service, institutional-grade platform. With dedicated blockchain expertise, the Company aims to become a leader in the field of digital asset-focsed wealth management services, bringing robust innovation and transparency to the customers and businesses it serves.
Nextbigone
1 month ago
$MATH news $1+ per share income
Metalpha Announces Fiscal Year 2025 Revenue Guidance and Investor Relations Update
(HONG KONG, June 9, 2025) -- Metalpha Technology Holding Limited (Nasdaq: MATH) (the “Company” or “Metalpha”), through its subsidiaries, is dedicated to providing digital asset-focused wealth management services with a full-service, institutional-grade platform. For the first time, the Company today announced its revenue guidance for the fiscal year ended March 31, 2025, anticipating approximately US$40 million in total income. This represents approximately 238% of the US$16.8 million recorded in the prior fiscal year.
This guidance reflects Metalpha’s current operational projections and market position. To provide investors with more clarity and insight, this guidance, along with historical financial performance for the six months ended September 30, 2024, has been integrated into an investor presentation deck.
Metalpha has also enhanced its investor relations website at ir.metalpha.net. Investors can now find the latest corporate information and all presentations, including the newly released guidance, under the “Presentations” section. Metalpha remains dedicated to improving its disclosure practices to ensure more comprehensive and professional market communications.
About Metalpha
Metalpha Technology Holding Limited (Nasdaq: MATH), through its subsidiaries, is dedicated to providing digital asset-focused wealth management services with a full-service, institutional-grade platform. With dedicated blockchain expertise, the Company aims to become a leader in the field of digital asset-based wealth management services, bringing robust innovation and transparency to the customers and businesses it serves.
Forward-Looking Statements
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management’s control. These statements involve risks and uncertainties that may cause Metalpha’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.
Financial Disclosure Advisory
This press release contains certain estimated preliminary financial results for the fiscal year ended March 31, 2025. These estimates are based on the information available to the Company at this time. The Company’s financial closing procedures for the fiscal year ended March 31, 2025 are not yet complete and, as a result, actual results may vary from the estimated preliminary results presented here due to the completion of the Company’s financial closing and audit procedures. The estimated preliminary financial results have not been audited or reviewed by the Company’s independent registered public accounting firm. These estimates should not be viewed as a substitute for the Company’s full annual financial statements. Accordingly, you should not place undue reliance on this preliminary data.
Nextbigone
2 months ago
MATH.Nasdaq sister company ANTA IPO dayAntalpha provides financing, technology and risk management solutions to the digital asset industry. As the primary lending partner for Bitmain, we are a provider of supply chain financing solutions to institutional and corporate participants in the Bitcoin mining industry, offering loans secured by Bitcoin and Bitcoin mining machines. We have developed a technology platform, Antalpha Prime, which enables our customers to apply for and manage their digital asset loans while allowing us to closely monitor collateral positions. We empower institutions and corporations to expand their Bitcoin mining business with immediate access to mining machines and sizable financing that is not readily available from conventional financial institutions. We enable Bitcoin miners to find liquidity with loans on capital expenditures and operating costs so that they can hold onto their Bitcoin and better endure the market volatility of Bitcoin prices, also known as HODLing. Supply chain financing for the Bitcoin mining industry represents a significant and largely untapped market opportunity. It is estimated that the market size for digital asset mining machines reached $4.9 billion in 2024, according to the Business Research Company. In addition, we estimate that Bitcoin miners currently spend approximately $8.2 billion annually on operating expenditures. We operate in the large and growing digital economy. Bitcoin is the largest digital asset, with a market capitalization that has grown from approximately $4.4 billion as of December 31, 2014 to $1.9 trillion as of December 31, 2024, according to Statista, representing a compound annual growth rate of over 83% over the past decade. Our addressable market will continue to expand as the value of Bitcoin increases, enhancing the collateral value available for our customers to borrow against. We have established unique strategic relationships with Bitmain and Northstar. As a business that set out to facilitate Bitcoin mining, we initially built our relationship with Bitmain, the world’s largest Bitcoin mining machine supplier, through our network of Bitcoin miners. We work closely with Bitmain across various levels of their organization, from sales to operations to executive management, acting as an integral part of their sales and origination process. We have entered into a memorandum of understanding with Bitmain, under which Bitmain will continue to utilize Antalpha as its financing partner, we have agreed to refer customers to each other, and Bitmain has agreed to provide us with a right of first refusal to serve its customers seeking financing, so long as we offer competitive financing terms. Our funding partner, Northstar, has historically provided almost all of the funding for the loans we originated. Northstar also offers financing solutions, which currently consist of Bitcoin margin loans, or Bitcoin loans, to our non-US customers through Antalpha Prime, for which we earn a technology platform fee. Prior to the 2024 Reorganization, we were affiliated with Northstar by virtue of being its sister company under common ownership of the Parent Company. Mr. Ketuan Zhan, founder of Bitmain, was the ultimate beneficial owner of the Parent Company but he did not take part in its operations. Northstar is currently owned by an irrevocable trust, and the trustee of this irrevocable trust is a professional trustee firm. Mr. Ketuan Zhan is the settlor and beneficiary of the trust and he does not take part in the operation of Northstar. Additionally, we have established key relationships with other Bitcoin ecosystem partners, including leading equipment suppliers, mining pool companies, stablecoin issuers and multi-party computation (MPC) technology providers, all of whom play a vital role in the growth and strength of the digital asset economy. Some of these entities also provide attractive financing to our business through our financing partner, Northstar, creating a mutually beneficial relationship as our products and services complement the growth in our partners’ businesses. For example, our business lowers the threshold to purchase mining machines by providing finance options and promotes the circulation of stablecoins, as our loans are typically settled in USDT. Additionally, we play an important role in securing the Bitcoin network by financing miners that are responsible for validating new blocks on the blockchain. We enable our customers to commence mining operations rapidly. When our customers purchase mining machines from Bitmain using our financing, they purchase machines that have recently been deployed on-rack, enabling them to calibrate the total cost of operation at the particular data center, as well as be able to start Bitcoin mining almost immediately. This approach contrasts with typical direct purchases, which can take up to six months or more, due to the time needed for factory delivery, import customs clearance, hosting site selection, installation and setting up services. Rapid access to Bitcoin mining is a significant benefit to dealing with the volatility of Bitcoin prices. We believe that combining speed to market with attractive financing terms is essential in a volatile and quickly changing Bitcoin mining environment. Our customers benefit from access to a comprehensive network of supply chain vendors tailored for data centers across the U.S., offering services such as machine hosting, yield-monitoring software, and maintenance and repairs. We help our customers engage with relevant vendors after they select a mining site, gain a better understanding of the mining process, and settle vendor payments through hashrate loans using the Bitcoins they mine as collateral. By streamlining Bitcoin mining operations and supporting our customers in navigating a network of mining service providers, we make it easier for them to enter and thrive in the Bitcoin mining industry, regardless of their prior experience. Our service support and ability to provide tailored solutions have enabled us to expand our customer base from traditional Bitcoin miners to non-traditional mining participants, such as family offices and corporations. From inception to December 31, 2024, we facilitated a total of $2.8 billion in loans, including supply chain loans that we originated and Bitcoin loans that we serviced. Due to our overcollateralization requirement at origination and strict risk management capabilities, we did not record any allowance, write-offs or recoveries against the receivables on the supply chain loans that we originated during this period. During the same period, we have not experienced any loan default or lost principal on our loans. Bitcoin is a highly liquid asset, with an average daily trading volume over $62 billion for the three months ended December 31, 2024, according to Coingecko. We typically require a loan-to-value (LTV) on collateral of between 50% and 80% at loan origination, depending on the type of loan and other factors. Mining machine loans typically require an LTV of 50% at origination, while hashrate loans typically require an LTV of 60% to 80% at origination. As of December 31, 2024, approximately 97% of our supply chain loan customers had their loans secured by Bitcoin. Collateral in the form of Bitcoin is typically transferred to us for the duration of the loan and remains inaccessible to the borrower until the loan and accounts receivable are fully repaid. Additionally, we secure loans by taking collateral in the form of Bitcoin mining machines. Our mining machine loan customers purchase on-rack mining machines from Bitmain that are housed in facilities that Bitmain leases from third-party data center operators. We require the secured machines to remain on site until the loan and accounts receivable are fully repaid. Our deep understanding of Bitcoin mining, combined with our relationships across a strong network of mining ecosystem partners, including equipment suppliers, mining pool companies and data center operators, enables us to effectively manage collateral like Bitcoin and mining machines. We have seen significant revenue growth and improving profitability. Our revenue primarily consists of technology financing fees charged on the supply chain loans that we originate. Our supply chain loan portfolio, which consists of mining machine loans and hashrate loans, has grown from $344.0 million as of December 31, 2023 to $428.9 million as of December 31, 2024 representing a 25% year-on-year increase. In addition, we enable our financing partner, Northstar, to provide Bitcoin loans to our non-U.S. customers. We contract directly with Northstar’s borrowers, service them over the term of the loan, and earn a technology platform fee for our services. The amount of Bitcoin loans we serviced grew from $220.8 million as of December 31, 2023, to $1,198.7 million as of December 31, 2024, representing a year-on-year increase of 443%. For the year ended December 31, 2024, revenues from technology financing fees increased 274% year-on-year to reach $38.7 million, revenues from technology platform fees increased 859% year-on-year to reach $8.8 million, and total revenues increased 321% year-on-year to reach $47.5 million. For the years ended December 31, 2023 and 2024, we recorded net loss of $6.6 million and net income of $4.4 million, respectively. A key driver of our revenue and loan growth has been our innovative and expanding range of products, designed to meet both our customers’ needs while maintaining our high standards for risk management. We began our operations in July 2022 with purchase order financing, allowing Bitmain customers to assign the down payment on their mining machine purchase to us as collateral for loans to cover the remaining balance on their purchase order. In October 2022, we added hashrate financing, allowing borrowers to pledge the Bitcoin that they mine as collateral to finance expenditures on mining-related services. Subsequently, in April 2023, we introduced mining machine financing, in partnership with Bitmain to help their customers finance on-rack mining machine purchases using the purchased machines as collateral. We work closely with our customers to deeply understand their needs and develop innovative, bespoke financing solutions to support their business growth. We aim to leverage Antalpha Prime and our expertise in supply chain financing and risk management to offer customized financing solutions and value-added services for clients across the digital economy. This includes exploring financing options for the purchase of graphics processing units, or GPUs, used for artificial intelligence, a rapidly growing market projected to reach approximately $235 billion in spending in 2024, according to IDC. We believe our supply chain financing and risk management know-how is deployable into different industries requiring massive computing, and that our business model is adaptable to working with leading equipment suppliers and customers who have sizable Bitcoin holdings. In addition, we plan to leverage our risk management know-how to deploy new products and services to our customers that would not require funding from us. --- Our principal executive office is located at 9 Temasek Boulevard, Suntec Tower 2, #13-02, Singapore, 038989. Our telephone number at this address is +65 6513 8815. Our registered office in the Cayman Islands is located at PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands. Our main website is https://www.antalpha.com. Our agent for service of process in the United States is Cogency Global Inc., located at 122 East 42nd Street, 18th Floor, New York, NY 10168.
Nextbigone
6 months ago
Metalpha Technology: Positioned to Capitalize on Emerging Trends in Digital Asset Markets
Overview Metalpha Technology, listed on NASDAQ under the ticker MATH, is a premier digital asset wealth management service provider. Incubated by Bitmain and backed by Antalpha, the company specializes in structured derivatives to empower crypto asset allocation. Metalpha operates under dual supervision from the U.S. SEC and the Hong Kong SFC, ensuring compliance and robust regulatory adherence.
Metalpha Technologies (NASDAQ: MATH) and MicroStrategy Incorporated (NASDAQ: MSTR) are prominent players in the cryptocurrency ecosystem but operate with distinct focuses. While Metalpha excels in structured derivatives, digital asset wealth management, and innovative fund solutions, MicroStrategy is primarily known for its substantial Bitcoin holdings as a treasury asset and its focus on enterprise analytics software. Metalpha leverages financial engineering to offer customized investment products and risk management strategies. MicroStrategy's approach is centered on long-term Bitcoin accumulation and leveraging its value appreciation to enhance shareholder equity. This contrast highlights Metalpha's role as a diversified service provider versus MicroStrategy's position as a strategic Bitcoin investor.
1. Growing Demand for Bitcoin (BTC) Linked Financial Products
As decentralized finance (DeFi) expands, Bitcoin remains a cornerstone asset, often used as collateral in lending protocols and liquidity pools. The rise in Total Value Locked (TVL) in DeFi platforms is expected to increase demand for BTC-backed structured financial products.
Strategic Advantage: Metalpha Technology specializes in BTC-linked structured derivatives, positioning it to meet the growing demand for tailored investment solutions in the evolving DeFi ecosystem.
Opportunity: By leveraging its expertise and regulatory compliance under the U.S. SEC and Hong Kong SFC, Metalpha can attract institutional and retail investors seeking BTC-focused yield products and derivative strategies.
2. Enhanced Institutional Adoption of DeFi
Institutional interest in DeFi is accelerating as platforms like AAVE, Compound, and MakerDAO attract significant liquidity. Higher yields and innovative financial instruments are also drawing traditional players into the DeFi space.
Metalpha’s Institutional Edge: With a team of financial experts from institutions like Goldman Sachs and UBS, Metalpha offers risk-managed products that bridge the gap between traditional finance and DeFi protocols.
Opportunity: Metalpha’s ability to cater to institutional investors positions it as a gateway for accessing DeFi opportunities, while its BTC-linked solutions mitigate risks and enhance returns.
3. Expansion of Tokenized Real-World Assets (RWAs)
The tokenization of assets such as bonds, commodities, and real estate is emerging as a key growth driver in DeFi. These tokenized assets require structured financial products to hedge risks and optimize returns.
Metalpha’s Role: The company is well-positioned to support tokenized RWA markets through its BTC-collateralized financial products. Strategic collaborations with mining pools like Antpool and financial service providers like Antalpha reinforce its unique ability to integrate BTC liquidity into these projects.
Opportunity: By enabling institutional participation in tokenized RWA markets, Metalpha can further establish itself as a digital asset wealth management leader.
Growth and Market Insights
Metalpha’s robust performance in 2024 underscores its potential:
A 305% increase in product issuance volume, reaching over $1.5 billion.
The launch of innovative funds, including a Bitcoin ETF-themed fund delivering a 280.5% return and a Mining Stock Fund yielding a 60% return.
Neutral quantitative strategies provide consistent annualized returns of 14.52%.
Social Responsibility and ESG
Metalpha aligns its growth with ESG principles, supporting initiatives like Bitcoin mining research for carbon neutrality and scholarships for disadvantaged students.
Conclusion
Metalpha Technology's strategic positioning in BTC-linked financial products and expertise in structured derivatives make it an up-and-coming player in the digital asset market. As institutional adoption of DeFi accelerates and the tokenization of real-world assets expands, Metalpha is well-prepared to capture emerging opportunities and drive future growth.
https://www.bidclub.io/posts/clugufj2n00011nl2aruhq569
Nextbigone
6 months ago
MATH=BTC play for 2025
With the price of Bitcoin surging 140% in 2024 — reaching the $100K milestone predicted by extreme bulls just 2 years ago — interest in Bitcoin stocks are increasing. The market cap of Bitcoin is over $2 trillion, bolstered in 2024 by the crypto-friendly president-elect, the reduced supply due to the halving of Bitcoin in April, and the launch of Spot Exchange Traded Funds (ETFs) in January.
ETFs made it easier for institutional and retail investors to gain exposure to Bitcoin, which has boosted demand. They work like other commodity futures, issuing publicly traded securities that offer exposure to the price movement of Bitcoin through futures contracts. There are now 37 Bitcoin ETFs, and institutional traders believe a $200K price of Bitcoin is now possible, with the rate of adoption by corporations and the possibility of a national reserve driving the next stage of growth.
Leading this new wave of corporate adoption and ETFs is Microstrategy (NASDAQ: MSTR), which holds 439,000 Bitcoins worth an estimated $45.6 billion. MSTR is primarily an enterprise level business intelligence company that creates software to help enterprises make data driven decisions to optimize their business processes. The company generates close to $500 million in revenue, but it's losing $50 million annually, which means most of the value is in the forward pricing of Bitcoin.
Microstrategy also co-founded the Bitcoin for Corporations initiative, to help accelerate the corporate adoption of Bitcoin. The CEO of Microstrategy, Michael Saylor, made a compelling case during the latest Microsoft shareholder meeting for Microsoft to join in the Bitcoin investment trend by converting dividends, buybacks and debt into Bitcoin. While the shareholder proposal was voted down, it generated tremendous interest (3.6 million views on X/Twitter). While there is volatility associated with MSTR, it still has a current market cap of $89 billion.
*Mining Stocks Holding Bitcoin*
Some of the top Bitcoin mining stocks like Marathon Digital (NASDAQ: MARA) and Riot Platforms (NASDAQ: RIOT) have been holding and buying Bitcoin — MARA holds 44,394 and RIOT holds 5,117 BTC.
*Asset Management Stocks*
Wealth management and asset management stocks don’t get as much retail exposure, but they also have considerable assets in play. DeFi Technologies (OTCMKT: DEFTF) is a financial technology company that provides asset management products for institutional clients investing in cryptocurrency. The company has revenues of C$120 million from their ETF business and add to it their C$100 million from their proprietary trading group. They also did an acquisition in October with Stillman, designed to turbo charge revenues even more, with at least $500 million in monthly trading volume. They possess 204 BTC ($20 mil.) and have a market cap of $1 billion. Given their top line growth and strong balance sheet, there's a strong possibility of an uplisting in the United States now that Gary Gensler is gone. LQWD Technologies Corp (OTCMKT: LQWDF) holds 131 BTC ($13.1 mil) and has a market cap of $31 million. They are also members of the Bitcoin for Corporations.
Sol Strategies Inc. (OTCMKTS: CYFRF) is focused on the Solana Blockchain and ecosystem. They were one of the first Bitcoin-related companies (known as Cypherpunk Holdings before they rebranded). They generate revenue from their validator operations, which process transactions and maintain the network — it’s like mining they are mining their Solana balance sheet. They completed two acquisitions this year — Orangefin Ventures and Cogent Crypto — and have 142,031 Solana, worth about $30 million and only 3 BTC. Their market cap is $315 million and you could call them the MSTR of Solana.
*Undervalued Stock*
Our focus stock is Metalpha Technology Holding Ltd. (NASDAQ: MATH), which is a tightly held wealth management stock on the verge of profitability, with a record of considerable asset accumulation — close to 300% annually over the past 2 years. The company is a complex derivative underwriter that layers on strategies for their wealth clients that work in bull markets, bear markets and sideways markets. They employ hedging strategies, market making and derivatives, as their subsidiary, LSQ Capital, is a licensed brokerage and futures dealer in Hong Kong, which means it can also launch ETFs. Their clients include institutions, exchanges, mining companies, investment funds and family offices. For many of the mining companies they offer a product that couples the financing of the mining rigs from partner Bitmain, while offering returns off the digital assets. This is a win-win for miners and creates a sticky customer base for their strategic partner Bitmain.
Revenues for 2024 came in at $16.8 million and they recorded a net loss of $.11 per share. The company also had a shareholder equity of $16.8 million and a net profit of $1.3 million, which was offset by a large warrant expense and resulted in a small loss for the year. The balance sheet contained $126.5 million in crypto assets. As of March 2024 they had transaction volume of $1.6 billion in BTC.
Given their trajectory this number could be closer to $3-4 billion based on the appreciation of BTC and their growth rate. There are 39.0 million shares outstanding and 20.6 million are held by partners and 5.5 million are held by insiders, leaving almost 13.0 million shares left in the float.
The key to their success revolves around their management team, led by CEO Adrian Wang who has a number of high level connections. Key shareholders in his company include Bitmain, which is the primary hardware supplier of Bitcoin mining rigs, and Antalpha, which provides the technical support for the hardware and has a strategic partnership with Bitmain. Together, they hold 64.9% of MATH. Other notable partners include Bloomberg, CoinDesk, Tether, Bloomberg, Morningstar, and Interactive Brokers Group (NASDAQ: IBKR).
*Investment Summary*
Based on a number of macro level factors, BTC is gaining momentum and experts are predicting a lot more upside. Within the emerging ETF market, MATH is grossly undervalued as the company has done little in the way of promotion. Given the low float nature and the Chinese connection, this stock could have a significant run. While MATH has a market cap of $38 million, DEFI, which is not a NASDAQ company and has a much smaller growth rate, scored a market cap of $1.0 billion. This is a massive divergence.
We believe MATH has the potential to be the next MSTR, as there are a lot of similarities like the holding of Bitcoin. Unlike MSTR, their revenue growth through their wealth management division along with their balance sheet means they are likely to enter profitability in the coming quarter. This means the company is extremely undervalued, as it trades at 1 times sales and 1 times book value, while their peers trade multiples of their asset value and are nowhere near profitability. Investors who like explosive upside and little downside risk, and who are looking for exposure to Bitcoin should consider a position. A $1.0 billion valuation is $25.00/sh. This stock could move with the price of Bitcoin.
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