C1 Fund Inc.

Good morning ladies and gentlemen and welcome to C1 Fund's Q4 earnings call 2025. Please note that this call is being recorded and will also be available for replay purposes. Following the conversation we will answer any questions that have been submitted through the ask a question tab on the top right hand of your screen. This call may include forward-looking statements about the expected investment activities of C1 Fund. These statements provide no assurance as to C1 Fund's actual investment activities or results. Listeners must make their own assessment of the information contained herein and consider such other factors as they may deem relevant to their individual circumstances. At this time, I would like to introduce your hosts for today's call, C1 Funds co-founder and chief executive officer, Dr. Najam Kidwai, and chief investment officer, Elliot Hahn. Today's presentation will discuss CFND's company and portfolio overview, 2025 and subsequent events highlights, financial highlights, path forward, and we'll wrap up with a question and answer segment. I would now like to hand the call over to Dr. Najam Kidwai. Please go ahead, sir.

Thank you, operator, and good morning, everyone. Thank you for joining us today to discuss the results of our fourth quarter year ended December 31st, 2025, covering the period from our inception on the 7th of August 2025 through year end. Before reviewing the highlights, I'd like to take a moment to introduce C1 Fund for those who are new to our story. C1 Fund is an NYSE listed closed-ended fund that provides public market investors with exposure to equity ownership in the world's leading late-stage digital asset infrastructure and service companies. The investment opportunity we offer addresses a structural gap in the market. These private companies are too late stage for early stage venture capital, private for traditional public market investors, and mutual funds rarely hold concentrated pre-IPO positions. CFND was purpose-built to bridge that gap and provide public market access to this asset class. We raised 60 million in gross proceeds at our August 2025 IPO and have approximately 6.7 million shares outstanding, a reported NAV per share of 781 as of December 31st, 2025. As of today, we hold positions in 11 private digital asset companies. We added four companies to the portfolio subsequent to the fourth quarter, with those being BitGo, Fireblocks, Uphold, and Blockratize, better known as Polymarket. Elliot will go over our portfolio and financials in more detail shortly. Our first two quarters as a public fund were defined by execution. We moved quickly from IPO to signage. early liquidity events from the portfolio. Specifically, since our August 7, 2025 listing on the New York Stock Exchange through December 31, 2025, we deployed $30.5 million in seven late-stage digital asset infrastructure companies, representing approximately 58% One of our portfolio companies filed a confidential submission for initial public offering with the SEC during the fourth quarter of 2025. And blockchain.com is said to be targeting potential 2026 listing in addition to other potential offerings in the near future. Following year end, we have continued that momentum. As of today's call, we have invested an additional 10.5 million in four companies, including BitGo, Fireblocks, Uphold, and Polymarket, bringing our total number of portfolio companies we have invested into the number 11. We have today invested $41.4 million. In early January, we purchased 2.2 million of a Series B1 Preferred shares in BitGo. Our shares are subject to a six-month lock-up through July 21, 2026. On January 29, 2026, our Board of Directors approved a stock buyback program, authorizing management to proceed at its discretion. Members of our during December 2025, reflecting insider alignment and long-term confidence in the fund's strategy. With that, I would like to pass the call to our CIO, Elliot, to walk through the opportunity we see for shareholders, our portfolio in detail, and our financial results. Elliot.

Thank you, Naj. I want to take a moment on what we view as one of the most important slides in the deck, the gap between the price and the value. We listed at $10 per share in August 2025. As of December 31st, 2025, our NAV per share was $7.81. And based on our share price as of May 13th, 2026, of approximately $3.34, our shares are trading at roughly a 57% discount to NAV. The key point we want to communicate is that this discount is not driven by NAV deterioration. It reflects the limited public awareness that often follows a newly listed closed-end fund. Closing that gap is one of our core priorities, and as I'll discuss in a moment, it is one of the most actionable opportunities for our shareholders. I want to spend a moment on how we think about value creation for our shareholders. This framework guides everything we do at C1 Fund. Our investment thesis rests on three drivers of value, each of which we are actively executing against. The first is NAV growth. We expect NAV per share to compound over time as our private portfolio companies raise additional capital and higher valuations, grow revenue and earnings into higher market multiples, benefit from continued expansion of digital asset adoption, and re-rate against the broader sector as regulatory clarity continues to improve. The second is closing the discount between our market price and our underlying NAV. Our board-approved share buyback program our audited annual NAV, our expanding analyst and media coverage, and our proactive investor outreach program are all designed to narrow that gap. The third driver is exit events. The Bitco IPO in January and the partial Ripple divestiture in April are the first to realize liquidity events, and we have several additional portfolio companies, including Kraken, pursuing an IPO with timing subject to market conditions. We also believe that Blockchain.com, Chainalysis, Consensys and Uphold represent strong public market candidates over the coming quarters. Management is focused on executing on all three drivers, compounding NAV, closing the discount and realizing exits. Turning to our portfolio, by year end, we have built positions in seven private digital asset infrastructure companies, and we have since added four more positions during the first quarter of 2026, bringing our total portfolio to 11 companies. Within that portfolio, our positions span the most strategically important segments of the digital asset infrastructure stack. I'd like to give a quick overview of the 11 companies we have in our portfolio as of today's call. So the first is Kraken. It's a leading global crypto exchange and filed a confidential S-1 with the SEC in Q4 of 2025, positioning it as a potential IPO candidate. The next is BitGo. It's an institutional digital asset custody leader, and as mentioned before, it completed its IPO on January 22nd, 2026. Ripple is a blockchain-based payment, custody and stablecoin infrastructure company serving financial institutions. They had a March 2026 share buyback and XRP, Ripple's crypto asset that facilitates payments on their network, now has several ETFs giving investors access to Ripple's crypto asset. The next is Fireblocks. It's an institutional infrastructure leader that provides an all-in-one platform for custody, wallet, and transaction technology for instructions operating in blockchain and cryptocurrency markets. Chainalysis is a leading blockchain intelligence and analytics platform used for investigations, compliance, risk monitoring, and digital asset security by governments, law enforcement agencies, and financial institutions. ConsenSys is a core Web3 infrastructure company with a portfolio of products and services that power activity across the Ethereum ecosystem. The next is Alchemy. that an alchemy provides web3 developers infrastructure tools and services that power approximately 70 of the top decentralized applications we also have blockchain.com it's a global exchange and wallet platform and is said to be targeting a potential 2026 listing Figment is a leading institutional staking infrastructure provider that enables clients to earn staking rewards across proof-of-stake blockchain platforms through secure non-consodial infrastructure. We also have Uphold in the portfolio. It's a global digital money platform that enables users to buy, hold, convert, and transact across digital assets, currencies, and other supported assets. The last in our portfolio is Blockvertise, which is better known as Polymarket. It operates an information markets platform that allows users to trade on the outcomes of real-world events, creating market-based signals around politics, economics, crypto, sports, and other current events. So I'm now turning to our schedule of investments as of December 31st, 2025. We held common stock positions in Alchemy Insights at a 2.5 million fair value, Blockchain.com at 2.5 million as well, Chainalysis at 2 million, Consensus Software at 1.5 million, Figment at 2 million, and Kraken Common Shares at 2.5 million. We also held preferred share positions in Kraken at 7.5 million and Ripple Labs at 10 million, respectively. So in aggregate, total investments at fair value were 30.5 million, representing approximately 58.4% of December 31st, 2025 net assets with cash and cash equivalents of 22.6 million. All portfolio investments are classified as level three under the fair value hierarchy, with valuations based on recent transaction pricing and significant unobservable inputs. Moving on to liquidity events. As mentioned previously, we've generated two realized liquidity events since our IPO and believe that we have several additional portfolio companies on a public markets path. The first event was Bitco's IPO, which was completed on January 22nd, 2026. As a reminder, our shares are subject to a six-month post-IPO lockup through July 21st, 2026. We are likely to decide how to maximize investor returns at that point. On April 20th, 2026, we announced the partial divestiture of our investment at Ripple of $422,100, generating an approximate 150% return in less than four months. The fund maintains continued exposure to Ripple following the partial divestiture. Looking ahead at our pending IPO runway and subject to market conditions, Kraken filed in Confidential S1 in November 2025, reported record Q3 2025 revenue of $648 million and may be in a second half 2026 IPO candidate. Chainalysis is another potential 2026 IPO candidate, and Blockchain.com is also set to be targeting a potential 2026 listing. Before I dive into the financial results, I'd like to quickly summarize our Q1 2026 and subsequent events. First, as I mentioned, we purchased 2.2 million of Series B1 preferred shares in BitGo in early 2026, and BitGo completed its IPO on January 22nd, 2026. Our shares are subject to a six-month post-IPO lockup through July 21st, 2026. Second, since January 1st, we deployed an additional 10.5 million across BitGo, as mentioned, Fireblocks, Uphold, and Polymarket. Total invested capital since inception has now reached approximately 41.4 million as of May 7th, 2026. Third, on January 29th, 2026, our board of directors approved the stock buyback program and authorized management to proceed at its discretion. We view this program as an important tool for narrowing the discount between our market price and our NAV. Fourth, on April 20th this year, we announced the partial divestiture of our Ripple position, generating an approximate 150% return in less than four months. With that overview, I will quickly run through our financials since our inception. So turning to our statement of assets and liabilities, as of December 31st, 2025, total assets stood at $53.2 million, comprised of $30.5 million in investments at fair value and $22.6 million in cash and cash equivalents. We have total liabilities of $1.2 million, resulting in net assets of approximately $52 million, or $7.81 per share on approximately 6.7 million shares outstanding. On our financial highlights for the period from inception to August 7th, on August 7th through December 31st, 2025, we generated 695,000 in interest income against total operating expenses of 1.6 million, resulting in a net investment loss of approximately 952,000. Combined with 406,000 of net unrealized depreciation, our net decrease from operations was 1.4 million. Separately, we incurred 6.7 million in one-time IPO expenses which comprise of $1.9 million in offering costs and $4.8 million in underwriters fees. I want to emphasize that these costs are non-reoccurring and reflect the heightened SEC review process for a crypto-focused fund and are not representative of our ongoing expense base going forward. I will now turn the call back over to Dinaj before we begin taking questions. Thank you.