Antalpha Platform Holding Company

Good day and thank you for standing by. Welcome to NLFAR's fourth quarter and full year 2025 earnings conference call. Today's call is being recorded. All participants are now in a listen-only mode. After management prepare remarks, there will be a question and answer session. I would now like to turn the call over to Mr. Chris Mamoni, Managing Director of the Blue Shirts Group and Representative for NLFAR's Investor Relations Team. Mr. Mamoni, please go ahead.

Thank you, Operator. Please note that our remarks today will include forward-looking statements based on current expectations. These statements involve risks and uncertainties that could cause actual results to differ materially. For discussion of these risks, please refer to Ad Office Filings with the SEC. We do not undertake any obligation to update forward-looking statements except as required by law. This call also contains references to unaudited non-GAAP financial measures. Reconciliation to the most comparable GAAP measures can be found in our press release and SEC filings. I'll now turn the call over to Herman Yu, Head of Strategy at AntAlpha. Herman will provide key operational highlights, followed by Paul Yang, who will provide financial highlights. On the call today, both Herman and Paul will discuss our results on a year-over-year basis, unless they mention otherwise. Herman, please go ahead.

Welcome, everyone. Thank you for joining our call today. And Alpha delivered a strong fourth quarter to wrap up a milestone year, reflecting the continued execution across our long-term roadmap. Revenue growth accelerated every quarter throughout 2025, with fourth quarter revenue reaching 28 million, up 110% year-over-year. Despite Bitcoin prices declining 23% in the fourth quarter, Nalpha revenue remained resilient. For the year, Nalpha revenue was $80 million, up 68% year-over-year. Total loan book grew at a consistent steady pace with prudent risk management. Total value loan on Nalpha Prime reached $2.8 billion at the end of 2025, up 59% year-over-year. Bitcoin pledge on the total loan book was $3.7 billion. Loan to value, or LTV, on supply chain loans was 57%, representing our disciplined approach to underwriting and collateral management. Loan balance per client grew 43%, and new client ads increased 12% year over year. At the end of December, our clients generated 81.3 exahash, approximately 7.3% of global hash rate. For the fourth quarter, adjusted EBITDA was 18.4 million, up 802% year over year. And adjusted EBITDA margin reached 66% up 51%, 51 points from the prior year. For 2025, adjusted EBITDA was 33.2 million, up 460% year-over-year, and adjusted EBITDA margin reached 42% up 30 points for the year. As a crypto native financing platform with tokenized gold upside and alpha revenue and profitability reached a historical high in the fourth quarter, our mining financing business is aligned with economics of compute, energy, and collateral-based lending. Our clients are more long-term focused, and they rely on ANALPHA's risk management capabilities to better equip them in navigating macro volatility. In addition, by embracing Tether Go and acquiring XEAT as part of our long-term roadmap, such risk management strategy not only improves our balance sheet resilience and funding source, but also provides our shareholder with the upside to goal appreciation. In an industry susceptible to volatility and large market swings, it is important for us to solidify our current strength while seizing new opportunities in adjacent industries. When we look at large global financial institutions, we often find market leaders that have solid balance sheets to weather market turbulence and be ready for market opportunities as they arise. To us, this means having an active risk management strategy to weather the market volatility and leveraging our marketing position and competitive mode to build on new market opportunities. Let me talk about our risk management and product innovation. Let's start with risk management. And Alpha's operating philosophy of risk management first has been prevalent since our inception. We require over-collaboration on day one instead of relying on clients' credit rating for loan origination. We require our clients to store their machines at a data center where we know the operator, and all the BTCs our clients mine are deposited in our wallet during the term of the loan which allows our clients' collateral pool to accumulate. With Bitcoin down approximately 50% from its peak last October, we have been in conversation with our clients to review the current market situation. There have been four other periods in BTC's 17-year history with a drawdown of 50% or more, and the market rallied back each time. From a risk management perspective, it's important to be in conversations with our clients to discuss potential scenarios and options with them. Helping our clients navigate market volatility and maintaining a stable financial position is crucial to our clients' long-term participation in the Bitcoin mining industry. This not only brings tremendous value to our clients, it also strengthens our own business overall. Let me turn to product innovation and seizing new market opportunities. Our competitive mode comes from our ability to serve clients. We work closely with our clients to understand their needs and offer new financing solutions in anticipation of new market opportunities. For example, it has almost been a year since we foresaw the importance of tokenized gold in serving the mining community and the crypto industry at large. Initially, we acquired 20 million in Tether Gold. Last October, we acquired NASDAQ listed Aurelion, anchoring its $100 million pipe and purchasing $134 million in Tether Gold, which further strengthened our balance sheet while building for gold appreciation upside. As of year end, total accumulated unrealized gain on Tether Gold was $16.6 million. $9.5 million of that is attributed to Nalpha. Year to date, gold prices have gone up another 22% as of last Friday. Aside from treasury gains, our involvement with Tether Gold and launching Nalpha RWA Hub have also allowed our customers to diversify into Tether tokenized gold and improve the resilience of their crypto holdings. Starting in Q4, a client can purchase XAT from us and redeem London bullion gold in both Singapore and Hong Kong. As a long-term roadmap, it's important to incorporate tokenized gold into our risk management strategy. Gold has low correlation with Bitcoin and low volatility. Tokenized gold is well-suited for the use as a collateral and as a store of value. We are looking into offering XAAT collateralized loans to our clients for resilience and diversification. With a strong supply of HPC coming to market, the backdrop suggests that AI agents are expected to drive demand for influence compute. With the advent of AI engines, We see financing opportunities that in the past were not possible due to the high administrative costs are now opportunities for us, such as agent-led financing solutions. 2026 will be an exciting year for us as we align Enelpa with new AI capabilities and market opportunities, as well as adjusting the way we operate to become an AI-driven company. We will brief you more on how we approach AI when we are ready to share more details.