Hilbert Group AB (publ)

Good morning, everyone. I am pleased to share what has been a truly transformative quarter for our Nasdaq-listed global crypto company. Today, I'll walk you through our remarkable progress across three key areas, our expanding asset management platform, our groundbreaking Synthetica innovation, and the strategic leadership additions that position us for exceptional growth. Q1 2025 marked the beginning of a new chapter for Hilbert Group, one defined by strategic execution, product innovation, and institutional excellence. Let's move to the next slide, please. So let me start with our management business, which has seen extraordinary momentum this quarter. We successfully launched two AI-driven hedge funds, the Hilbert Liberty Fund and the Hilbert Multistrat Fund. These aren't just new products. They represent our evolution into sophisticated institutional grade investment vehicles designed to specifically deliver low volatility yield enhancement in Bitcoin and Ethereum. The performance numbers speak for themselves, which is in the middle column as well as later in my presentation. But our Bitcoin basis plus strategy delivered an outstanding year-to-date return of almost 18% on top of Bitcoin. The dollar basis plus strategy has achieved about 17% on absolute terms. And the Zappo Byzantine Bitcoin Credit Fund is currently generating a yield of circa 3.4% on top of Bitcoin. What is particularly exciting is the scale that we have achieved. These funds have a combined capacity that exceeds $3.5 billion. This is important because it positions us to capture significant institutional flows as the market matures. Our business development momentum is also accelerating. We now have a 2020 seed pipeline of approximately 200 million across 15 investors, with 70 million currently in late-stage due diligence. This represents real committed capital from sophisticated institutional investors. The integration of Liberty Road capital completed in March 2025, and it has already begun contributing to this pipeline growth and will show its full impact in our Q2 results. Let's move forward, please. Now, let me provide more detail on our flagship strategies, which demonstrates our technological sophistication and risk management capabilities. There is a lot of description on this page. However, let me summarize that for you. Our basis plus strategy is an AI-driven, trading strategy that is engineered for consistent performance. They are delta neutral in nature with low risk structures focusing on high liquidity and short duration trades. We've achieved 94% plus positive months with approximately 30% annual return and while maintaining a maximum of one-time leverage and strong risk management protocols. This is a highly sought after type of strategy in crypto market because it provides a low volatility return profile, especially suitable for crypto foundations, crypto corporate treasuries, et cetera. Another product is Active Treasury Bitcoin. This is also AI driven, but it uses traditional covered calls and covered puts to target something like five to 7% in volatility with a sharp ratio of about two. This strategy dynamically shifts position based on market directions and delivers about 5% of annual return with only about 5.5%, 5.6% of risk and a maximum drawdown of just about 7%. Older, from the arsenal of older strategy, we have now upgraded the V100 fund. This is the long-only crypto strategy that dynamically shifts between now Bitcoin and altcoins, and it's based on Bitcoin momentum indicator. And it uses a semi-automated system to maximize gains in a bull market while managing risk through volatility-based signals. And please move forward, Viking. Yes. In April alone, our strategies have delivered exceptional results. As is on your screen, the April net performance for Bitcoin Basis Plus sits around 7%. The Dollar Basis Plus is around 6%. Active Treasury Bitcoin is returning 3.4%. And V100 fund is up about 4.5% for the month. These consistent returns demonstrate the robustness of our AI-driven approach and our ability to generate alpha across various market conditions. Next slide, please. Now, our strategic progress is matched by significant leadership strengthening that positions us for institutional growth. We are honored to welcome Steen Jacobson, former longtime chief investment officer of Saxo Bank, to our board of directors. Steen brings decades of institutional investment expertise, is a well-regarded investor, and will guide our strategic direction as we scale globally. Russell Thompson has been appointed the group chief investment officer now and is also joining the board following our Liberty Road acquisition. Russell now oversees all investment activity across the firm. He brings deep institutional experience and proven track record in both traditional and digital asset management. And finally, Ashley Moore, former Copper executive, has joined us as managing director for Hilbert Capital to drive our global institutional growth. Ashley's extensive experience in both digital custody and institutional services will be instrumental in expanding our market presence worldwide. This leadership team represents the quantum leap that we have taken in our institutional capabilities and market credibility. Next slide, please. Okay, now let me share our most exciting development at Synthetica. This is revolutionary tokenization and trading platform that's actually ahead of schedule and is set to transform how institutions access real world assets. We've just completed our first major milestone, which is the build out of our decentralized exchange, which we are calling Syntax, for trading tokenized real world assets. That includes pre-IPO shares from companies like SpaceX and OpenAI, as well as other traditional assets. In addition, we will be beginning by offering our crypto yield products also on-chain. The full platform remains on track for our September 2025 launch with our Bitcoin Yield Fund as the first tokenized product to be rolled out. Synthetica isn't just another DeFi platform. And I want to underscore that it is a regulatory grade, KYC powered, as in powered by technology known as zero knowledge. platform that seamlessly integrates traditional and crypto assets. This regulatory compliance is crucial for institutional adoption. And this is what that sets us apart from other tokenization attempts. We have initiated the token sale for our ecosystem token and are currently in discussion with about 20 VC firms and institutional investors. We expect to close our seed round of about 3 to 5 million by early July. And we already have soft commits secured for a significant portion of that amount. In terms of revenue models, Synthetica represents multiple streams. The AUM inflows from tokenized products, the trading fees, and the listing fees, just to mention a few. And this creates a recurring revenue model that scales with platform adoption. So as I laid out, this three-phase roadmap is progressing excellently at the moment. Next slide, please. This is essentially what I just have run through in terms of the roadmap. So I won't go over it again. But all that it summarizes is the three steps that include foundation and protocol launch, the liquidity and token launch, and then the ecosystem expansion. And it's begun already. As I said, we have begun the sale process and are in conversation with several counterparties. Viking, next slide, please. So looking ahead, we are certainly operating in a much more favorable environment as compared to prior years, which plays directly to our strengths In terms of market condition, Bitcoin is near all time highs with accelerating institutional adoption via ETFs and other corporate treasury like strategies that we are seeing more and more becoming mainstream. Regulatory conditions, especially in the US are the most favorable we have seen in years. The removal of regulatory uncertainty has and will continue to unleash institutional capital that was previously sidelined. As more companies adopt Bitcoin on their balance sheet and build digital asset infrastructure, Hilbert is exceptionally well positioned by virtue of both our product offering as well as integrated model that we have, which combines performance focused asset management our proprietary trading, and also the platform innovation, which I just spoke to you about that creates multiple value drivers. We're currently managing about $410 million equivalent in AUM with a robust pipeline, as I mentioned earlier, but for 2025, that amounts to about 108.5 million. And that amount is subject to 220 fees. Our multi-strategy fund is especially important in this regard because it's truly scalable and represents a prime opportunity for large institutional allocators. Next slide, please. Thank you. And so we anticipate a pretty strong Q2. Actually, could we please move forward? I have already covered this part. Thank you. So just to round out, we anticipate a robust Q2 with several strategic deals, balance sheet developments, product milestones in our horizon. The Liberty Road integration will show its full impact next quarter, and Synthetica's progress will accelerate as per the roadmap. And I just want to conclude by emphasizing what makes Herbert Group unique in digital space is our proven track record of consistent performance across market cycles. We are extremely regulatory compliant as compared to the rest of the market and our competitors. And that approach enables and is favored by institutions and thus brings institutional adoption. technological sophistication with our AI-driven strategies, and finally, more importantly, a strong leadership team now in place that has very deep institutional relationships. We also, I'd be remiss to not mention this, have somewhat of a first mover advantage in what is compliant real world asset tokenization in the form of Synthetica. Therefore, it feels like the model we currently have creates long-term value. It's designed for sustainable value creation in the digital asset space. We are not just riding the crypto wave. We're building the infrastructure and the product that will define the next decade of digital finance. In closing, Q1 has been transformative for us. We've scaled our fund platform, accelerated product innovation, and we have enhanced our institutional leadership. We will continue to build on that momentum And this is truly just the beginning. With Bitcoin near all-time highs, improving regulatory clarity, and also institutions finally coming to the market, we are positioned to capture this what would be called generational opportunity. And I wanted to thank you all for your trust and continued support. I look forward to sharing our continued progress with you as we execute on this exciting roadmap. Thank you.