Metalpha reports 388% revenue surge, plans $5 million buyback

HONG KONG - Metalpha Technology Holding Limited (NASDAQ:MATH), a company specializing in digital asset wealth management with a market capitalization of $69.6 million, has reported a substantial increase in revenue for the six months ending September 30, 2024. The firm’s revenue rose by 388% compared to the same period in the previous fiscal year, reaching $19.72 million. This growth marks a significant turnaround from a net loss of $3.86 million to a net profit of $6.04 million. According to InvestingPro analysis, the company’s stock appears undervalued based on its Fair Value calculations, with impressive YTD returns of 64%.

In line with these strong financial results, Metalpha’s Board of Directors has authorized a share repurchase program of up to $5 million over the next 36 months. This decision underscores the company’s confidence in its strategic direction and its commitment to enhancing shareholder value. The company maintains a healthy balance sheet with a current ratio of 1.11 and a modest debt-to-equity ratio of 0.3. InvestingPro subscribers can access detailed analysis of the company’s financial health, which currently rates as "FAIR" with a score of 2.45 out of 5.

The revenue growth has been attributed to Metalpha’s focus on high-quality products and services, reflected in its strong gross profit margin of 33.57%. Adrian Wang, the chairman and CEO, highlighted the company’s investment in talent, technology infrastructure, and internal control systems as foundations for its long-term scalability and sustainability. InvestingPro data reveals the company’s impressive revenue CAGR of 43% over the past five years, with analysts forecasting 75% growth for FY2025.

Metalpha, which went public on October 20, 2017, has been expanding its financial offerings and partnerships. The company’s goal is to lead in the crypto wealth management sector by providing innovative and transparent services to its customers. Trading at a P/B ratio of 4.13, the stock has shown strong momentum with a 67% price return over the past six months.

Investors should note that this information is based on a press release statement, which also contains forward-looking statements. These statements are subject to risks and uncertainties that could cause actual results to differ from those projected.

The financial data presented in the press release has been furnished to the U.S. Securities and Exchange Commission and is available on their website. Metalpha’s share repurchase program will be executed through open market purchases or privately negotiated transactions, subject to market conditions and capital needs.

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