Aug 31, 2022
The second quarter 2022
(compared to second quarter 2021)
- Revenues amounted to kSEK 8,461.7 (385.8)
- Operating profit/loss (EBIT) totaled kSEK -16,102.2 (204.0)
- Result for the period was kSEK -8,557.0 (204.0)
- Cash flow from operating activities amounted to kSEK -10,150 (962)
- Earnings per share before and after dilution amounted to SEK -0,17 (0.2)
Year to date January – June
- Revenues amounted to kSEK 12,227.6 (2,659.2)
- Operating profit/loss (EBIT) totaled kSEK -22,277.4 (2,006.4)
- Result for the period was kSEK -13,179.1 (2006.4)
- Cash flow from operating activities amounted to kSEK -16,526 (+424)
- Earnings per share before and after dilution amounted to SEK -0,28 (2.01)
Highlights from the CEO’s address
General
The rest of the year is also likely to be very challenging with continued weak equity markets, high inflation prints and higher rates, and an ongoing energy crisis as we are coming into the colder part of the year. A major downside move in equity markets from here would likely drag the crypto markets with it, at least initially. Crypto market cap was at a peek in late 2021 at $3 trillion, currently it is at $1 trillion. When I first started looking seriously at digital assets in early 2017, the total market cap was $30 billion. Having a long-term perspective is key for successful crypto investing – remember, these difficult times too, shall pass.
Asset management
In terms of new products, we have spent most of this year structuring what we call a market-neutral 2.0 strategy that will have broad appeal to institutions and family offices, emphasising capital preservation. Consequently, on the 12th of August 2022 we launched the Hilbert V1 Fund with about SEK 50 million of partners/internal capital and we will soon open it up for external investors, as soon as we obtain the regulatory approval. Hilbert V1 Fund targets an annualised volatility and drawdown of around 10% with a net annualised return of about 20% and only exhibit around 10% market directionality. The fund features a so-called onshore US-feeder which enables tax-advantageous investments also for US-domiciled entities and individuals – this is pivotal as we consider the US to be our most important market at the moment.
Over the past 6 months, we have talked to about a 100 institutions, including many of the largest ones such as Blackrock, Blackstone, Deutsche Bank, Morgan Stanley, UBS, Goldman and SEB etc., and maybe somewhat paradoxically given where the crypto markets are today, the institutional interest has never been higher in digital assets. They are all building their own digital asset teams and setting up the infrastructure needed to deal with the new asset class. By and large, the institutions are going for it in the digital asset space.
COIN360
It was roughly a year ago we acquired the majority stake in Coin360 and during this time the company has been fully self-sufficient in terms of financing and the next step is making the company/platform substantially profitable by adding the Saas component and thereby adding another revenue stream on top of the advertisement one.
No one knows how long the “crypto-winter” will last and we are going to position the company in a way where it continues to be self-financing, even with significantly reduced income – and at the same time sticking to our features roll-out plan. Hence, as we adapt to the prevailing market conditions, we will shortly be streamlining the organisation of Coin360.
VENTURE
HAYVN crypto investment bank continued to be cash-flow positive throughout the recent market dislocation and has onboarded roughly 1000 new clients so far this year. Their client base is a mix of institutions and private individuals with a global geographical spread. The revenue generating products are OTC trading and Custody – of digital assets. HAYVN is fully regulated both in Switzerland and Abu Dhabi.
For further information, please contact:
Niclas Sandström
CEO Hilbert Group AB
+46 (0)8 502 353 00
ir@hilbert.group
