Earnings call transcript: Antalpha Platform’s Q2 2025 revenues rise 49% YoY

Antalpha Platform Holding Ltd reported a strong second quarter for 2025, with revenues reaching $17 million, marking a 49% increase year-over-year. The earnings per share (EPS) came in at $3.27. Following the announcement, the company’s stock saw a slight decline of 0.43% in after-hours trading, with shares priced at $12.695, down from $12.75. According to InvestingPro data, the company, currently valued at $312.31M, is trading above its Fair Value, with a P/E ratio of 49.3x indicating premium pricing relative to earnings. The company has outlined an optimistic outlook for the coming quarters, projecting revenue growth and expanded market presence.

Key Takeaways

• Antalpha’s Q2 2025 revenue increased by 49% year-over-year.
• Adjusted EBITDA rose by 147%, with a margin improvement to 22%.
• The company is expanding its product offerings to include Ethereum-backed loans and digital gold strategies.
• Antalpha is preparing for an expansion into the US market.

Company Performance

Antalpha Platform demonstrated robust growth in Q2 2025, driven by significant increases in both revenue and adjusted EBITDA. The company has effectively leveraged its diversified product offerings, including supply chain and margin loans, to capture a larger market share. InvestingPro analysis reveals a strong gross profit margin of 90.9% in the last twelve months, though the platform’s Financial Health Score indicates some areas for improvement. For deeper insights into Antalpha’s financial metrics and growth potential, investors can access the comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 US equities. The expansion into new financial products, such as Ethereum-backed loans and digital gold strategies, underpins its growth strategy. Additionally, the company’s financing of 75.6 exahash represents 8.8% of the global hash rate, highlighting its expanding influence in the cryptocurrency market.

Financial Highlights

• Revenue: $17 million, up 49% year-over-year
• Adjusted EBITDA: $3.8 million, up 147% year-over-year
• EBITDA Margin: 22%, increased from 13% last year
• Supply Chain Loan Revenue: $12.9 million, up 39% year-over-year
• Margin Loan Revenue: $4.1 million, up 91% year-over-year

Earnings vs. Forecast

Antalpha reported an EPS of $3.27, with actual revenue at $17 million. The EPS and revenue figures indicate the company’s strong performance in the quarter, aligning with its growth trajectory. However, the stock saw a minor decline in after-hours trading, suggesting that investors may have had higher expectations or concerns about future challenges.

Market Reaction

Following the earnings announcement, Antalpha’s stock price experienced a slight decline of 0.43% in after-hours trading, closing at $12.695. This reaction may reflect investor caution or a reassessment of the company’s future prospects, despite the positive financial results. Notably, InvestingPro data shows analyst price targets ranging from $18.50 to $20.00, suggesting potential upside. The stock has shown strength recently, with a 2.91% return over the past week, though it remains 49% below its 52-week high of $27.72. The stock remains within its 52-week range, indicating stable investor interest.

Outlook & Guidance

Antalpha has set a revenue forecast of $21-22 million for Q3 2025, representing a 62-69% year-over-year growth. The company aims to maintain an adjusted EBITDA margin between 20-24% while expanding its lending products and exploring new opportunities in digital gold and AI compute financing. These initiatives are expected to drive further growth and market penetration.

Executive Commentary

CEO Herman emphasized the company’s commitment to risk management and strategic growth, stating, "We are a risk management company, so we take risk management as our top priority." He also highlighted the potential benefits of expanding into the US market, noting, "With the current administration embarking on US, the crypto capital of the world... N Alpha stands to benefit from policy tailwinds."

Risks and Challenges

• Regulatory changes in the cryptocurrency market could impact operations.
• Market saturation in crypto lending and financing may limit growth.
• Fluctuations in digital asset prices, such as Bitcoin and gold, could affect revenue streams.
• Competition from established financial institutions entering the crypto space.

Antalpha Platform’s Q2 2025 earnings call highlighted the company’s strong financial performance and strategic initiatives for future growth. With a focus on innovation and market expansion, Antalpha is positioning itself as a leader in the evolving financial landscape. Looking ahead, investors should note that the company’s next earnings report is scheduled for September 16, 2025. For comprehensive analysis and additional InvestingPro Tips on Antalpha’s growth prospects, visit the company’s detailed Pro Research Report.

Full transcript - Antalpha Platform Holding Ltd (ANTA) Q2 2025:

Conference Operator: Good day, and thank you for standing by. Welcome to N Alpha Second Quarter twenty twenty five Earnings Conference Call. Today’s call is being recorded. All participants are now in a listen only mode. After management’s prepared remarks, there will be a question and answer session.

I would now like to turn the conference over to Chris Mamone, Managing Director of The Blue Shirt Group and representative of Antelope’s Investor Relations team. Mr. Mamone, please go ahead.

Chris Mamone, Managing Director, Investor Relations, Blue Shirt Group: Thanks, Maggie. 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 a discussion of these risks, please refer to Antalpha’s 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. Reconciliations to the most comparable GAAP measures can be found in our press release and SEC filings. Now I’d like to turn the call over to Herman for his remarks. Herman, please go ahead.

Herman, CEO, N Alpha: Good afternoon, everyone, and thank you for joining our second quarter two twenty twenty five earnings call. Q two was a solid foot step forward in N Alpha’s growth journey. We became a publicly traded company, grew revenue by close to 50% year over year, and introduced new lending products. We are well positioned in the infrastructure layer of mining in the broader crypto market. The strength of N Alpha’s prime’s platform is reflected in our solid financial results and positive outlook.

Let me briefly highlight the operating takeaways for q two, and then Paul will cover the financial highlights. Q two revenue was up 49% year over year to $17,000,000, which is an acceleration from the 41% growth reported in q one. Sequentially, revenue was up 25%, meeting the high end of our guidance. Our adjusted EBITDA more than doubled to $3,800,000, and EBITDA margin expanded to 22%, up from 13% a year ago, reflecting the operating leverage of n alpha prime platform. In q two, both the total number of institutional clients and average loan per client were up over 40% year over year.

These strong results reflect customer stickiness and their desire to do more business with us over time combined with robust net new client wins. Positive feedback from our client indicate that they like the risk management system on n alpha prime and that we provide friendly solution to solve their mining issues after their purchase. In our nearly three years of operation, N Alpha has created a flywheel for our revenue to grow double digits and profits to grow triple digits on an annual basis. With the launch of Bitcoin ETFs last year and policy tailwinds for the crypto market, we believe we are in the early earnings of Bitcoin adoption and accumulation, and there’s a long way ahead for Bitcoin mining. With the rapid growth of Bitcoin activity, the need for crypto collateralized financing is accelerating.

Bitcoin mining is a CapEx and operating expenditure intensive business. If you look at other similar industries, the amount of external financing is substantial. For example, GM Finance financed 38.6% of GM retail auto sales in 2024. Similarly, according to National Association of Realtors, last November, 74% of all home purchases in The US were financed. Bitcoin investors have a term for themselves.

They are known as holders. So for hold on for dear life. They prefer to finance machine acquisitions and electricity costs so that they can fully benefit from Bitcoin appreciation. Let me elaborate on how we are growing our total available markets. Our TAM is already substantial with global hash rate growing and our penetration low at 8.8%.

Yet we see many opportunities for increasing lending, and we’re working on these initiatives. First, we are expanding our TAM through margin lending against crypto collateral. Our Bitcoin margin loans reach a TVL of 1,200,000,000.0 at the ’2. During q two, we expanded this service by working with NorthStar to offer margin loans against Ethereum, which has a market cap of about $470,000,000,000. Our clients have told us they invest in Ethereum and would like to use such crypto assets to secure financing.

This addition would increase our lending scenario. In q two, we test positive Ethereum collateralized loans for two customers and reach a TDL of 53,000,000. Next, we are developing financial products for adjacent financing products for adjacent closely related markets. We see opportunities in inference compute and potentially other infrastructure related services. AI inference compute and Bitcoin mining operate in a similar environment, so financing AI compute infrastructure is natural for us.

We can leverage many advantages of our current mining compute operations, including our strong network of vendors. The AI business is still in an early stage. NVIDIA inference machines are up and running in The US, and we will soon be able to make this available for our customers to test pilot. Lastly, we’re adding new clients by making it easy for public companies to enter Bitcoin mining. N Alpha has simplified Bitcoin mining operations to where a new entrant can add such business to their operations without previously having any mining know how by leveraging our industry expertise and our financing solutions as well as our network of service providers.

This allows us to generate new business while our new lending clients return to healthy and profitable growth, a classic win win scenario. An early success case study for us is CANGL, ticker symbol, c a n g. CANGL initiated a strategic transition into the Bitcoin sector to improve business performance when their core business was faced with sluggish industry growth. After purchasing 50 exahash of mining capacity, Tango is now generating significant revenue and free cash flow, albeit in digital form. In their July published reports, revenue surpassed an annualized run rate of 800,000,000, assuming the current Bitcoin price.

Their market cap is up more than three x in the past year, currently at around $860,000,000. Kango is very happy with these results and has invited our CEO to join their board. Moore will work with the team to devise a new path in mining infrastructure with the cash flow that Tango generates from Bitcoin mining. Tango is just one example of the public companies adding Bitcoin mining to their business. Bitcoin mining is a good way to enter Bitcoin for a public company because you are not acquiring Bitcoin at any specific time, but over a period of time.

Mining costs adjust downwards when Bitcoin prices drop. We are quite excited about newly listed entrants into the Bitcoin mining industry. Now let me turn our attention to digital gold. The market sentiment for crypto and gold are both favorable. In q two, both Bitcoin and gold rallied significantly driven by heightened demand for institutional safe haven assets.

Bitcoin was up nearly 30% sequentially in q two and approximately 90% since halving last year and over four times since the beginning of 2023. Demand has driven has been driven by growing regulatory clarity in The US, inflows into Bitcoin ETFs, and listed company treasury strategies. Meanwhile, gold surged 26% in the first half underpinned by persistent geopolitical tensions, inflationary concerns, and central banks diversification away from the US dollar. In q two alone, gold hit multiple all time highs, supported by safe haven demand and portfolio rebalancing toward precious metals. In the same period, we saw multiple instances where Bitcoin and gold moved in opposite directions in reaction to headline news and broader global developments.

This sort of behavior is welcome because it confirms the wisdom of our strategy to hold digital gold as a balance to crypto volatility just as investors hold bonds to balance an equity portfolio. We have purchased $20,000,000 of Tether Gold or XAUT and plan to increase our gold holding over time. As we diversify our collateral position, we believe our clients will find interest in increasing the resiliency of their crypto denominated treasury holdings. For example, our clients have suggested that we expand our lending to XAUT collateralized loans or provide yield to XAUT holders, to name a few. The latter is an interesting idea.

When you deposit gold in Switzerland, you pay a custody. Depositing digital gold with a custody service provider also requires an annualized custody, around 50 basis points on total. That leads us to think, what if we can offer digital gold depositors a yield instead of a tax on storage? This could be a game changer, especially for a lending platform like N Alpha. Gold has a market cap of $23,500,000,000,000.

That’s about 80% of treasury bills market. Assuming 80% of the market cap of USDT plus USDC suggests the market size for digital gold could reach $200,000,000,000. Before I conclude on my prepared remarks, I’d like to give a warm welcome to Dorar Islam, our new chief operating officer. Dorar previously served as the CEO of Genesys and later as its acting CEO. He brings deep experience in the crypto lending space, particularly in The US and EMEA.

With our recent IPO, our participation at Bitcoin conferences in The US, and the addition of seasoned industry leaders like Derrard, we are building a foundation for international expansion into The US and into EMEA. Now

: let

Herman, CEO, N Alpha: me turn the call over to our CFO, Paul Liang, who will share the details of our financial performance for q two.

Paul Liang, CFO, N Alpha: Paul? Thank you, Roman, and hello to everyone joining us today on the call. I will walk you through N Alpha’s financial highlights for the 2025. We reported total revenue of 70,000,000, representing 49% year over year growth. We achieved the high end of our guidance, reflecting strong demand across our core lending products.

Supply chain loan revenue reached 12,900,000.0, up 39% year over year, driven primarily by growth of share financing. As of the end of q two, we financed 75.6 exahash, representing 8.8% of global Hash rate capacity, more than doubling our share from 3.7% a year ago. Margin loan revenue totaled 4,100,000.0, up 91% year over year. During the quarter, we test pilot Ethereum collateralized loans with two customers, which we believe will expand our TAM as well as our profit margin. Tech fees on margin loans are recognized on a net basis.

We have gotten positive feedback for all these new offerings. Total loan value or PBL reached 2,000,000,000, up 58% year over year with supply chain loan PBL increasing 75% to 714,000,000. Margin loan PBL increased 50% to 1,300,000,000.0, buoyed by strong Bitcoin price momentum. In terms of profitability, our business model continues to demonstrate strong operating leverage. In analyzing our loan performance, we are using the term net interest margin or NIM, which reflects the concept of yield earned after funding cost.

With the increasing brand recognition in the industry and positive word-of-mouth on our service from our our clients, the NIM for both machine loans and tertiary loans expanded year over year with machine loans up 47 basis points and hashing loans up 24% 24 basis points. In addition to increasing tech fee rate, our funding cost dropped to 5.2%, down 20 basis points from a year ago, so supported by disciplined capital sourcing and improved credit terms. Net interest margin on supply chain loans as a whole, however, was down 60 basis point year over year due to an increased mix of Hashay loans, which outperformed in q two and reached approximately three quarter of our supply chain loans. The tap fee rate on hedge loan is lower than mining machine loans, which draw from one common capital pool. Our NIM on margin loans increased to 1.3%, an improvement of 10 bps from year ago, driven by pricing leverage and the recognition of the increasing value of n alpha prime brings to our loan partners.

Excluding funding costs and 2,600,000.0 in stock based compensation, Operating expenses were 6,200,000.0 in q two, up 40% year over year. This was primarily driven by an increase in marketing ex activities as well as higher general and administrative expenses. For example, in May, we participated in Bitcoin twenty twenty five Las Vegas, which gave us substantial visibility as we prepare to enter The US market. Compared with last year, g and a expenses increased in q two as we incur professional fees and added more public company expenses to our, and experience to our g and a team. Non GAAP net income was 3,300,000.0 compared to 1,100,000.0 in the same period of last year.

Adjusted EBITDA was 3,800,000.0, up 147% year over year with EBITDA margin expanding to 22% compared to 13% in q two last year. Turning to q three financial outlook. Assuming Bitcoin remains at 110,000 level, we expect q three revenue to be between 21 to 22,000,000, representing 62 to 69% year over year growth. Adjusted EBITDA margin was 22% in q two, and we expect q three adjusted EBITDA margin to be in similar range between 20 to 24%. This concludes our prepared remarks, and we are now ready to begin q and a session.

Operator, prompt for the first question.

Conference Operator: Thank you. Ladies and gentlemen, we will now begin the q and a session. Just a moment for our first question, please. Your first question comes from Delaynand Hassan from Ruth Capital Partners. First,

Delaynand Hassan, Analyst, Ruth Capital Partners: to start, I was wondering if you guys could go into a bit more color on some of the new product offerings like GPUs, any sort of timeline on when you’d be looking at that and how your go to market strategy and economics on GPUs might differ from your current product offerings?

Herman, CEO, N Alpha: Okay. Yeah. So for our AI compute, we’re we’re still testing the product. We we haven’t, you know, gotten into a stage of pilot testing. We think, ultimately, the the terms are gonna be, similar to to mining.

You know, we’re gonna, require LTV. We’re gonna, you know, require a tech fee, and then, we’re probably gonna have something similar to a two year because usually that’s a minimum where, you know, investor of compute, want want to take out a loan. What we are right now is, setting up the the machines itself and being able to run it and be able to, you know, capture the total cost and everything. Secondly, we’re working with a partner to to create a site in which if you are investor of these compute machines, you’re able to be able to, you know, sell this compute to to, you know, a developer and so forth. So the idea is we’re getting into NVIDIA inference compute for two reasons.

Right? One thing is you can do mining for POW. The other one is, you could send, resell this compute to a developer. So we’re looking at both options. I think when those two are available, then it gives ROI to the investors, and then that’s where we’ll probably, you know, do more of these loans.

Delaynand Hassan, Analyst, Ruth Capital Partners: Great. Thank you. And and as a follow-up, how quickly do you think you can roll out the Ethereum backed product, and do you think that can apply to other top cryptos like Solana or some of the others in the market?

Herman, CEO, N Alpha: I think we’re gonna take one step at a time. I think that the key thing with these marginal is, you know, being able to be stable and so forth. So we’re gonna test Ethereum, and then we’ll see how it goes. I think you you have the right line of thought to say, hey. If Ethereum works, do we then expand?

I think we we we wanna take it one step at a time and see how we work with Ethereum. As you know, Ethereum is a big market. There there’s a lot of believers. There there’s a lot of opportunity for it because of all the application development and so forth. So we’ll take this first step, and then sure enough, later on, if our investors, you know, accumulate lot of Solano and they need to, you know, use that as collateral or they have other things, then I think at that point, we’ll we’ll make that judgment.

Delaynand Hassan, Analyst, Ruth Capital Partners: Great. Thank you.

Herman, CEO, N Alpha: Yeah. Yeah. I think all these major tokens, including TIGITAL GO and so forth, these are things that I think is our our upside, our opportunity to continue to explore. Thank you.

Conference Operator: Thank you. Next question comes from Edward Eagles from Compass Point. Please go ahead.

Edward Eagles, Analyst, Compass Point: Hi, guys. Thanks for taking my question. I just kinda wanted to touch on how you guys are feeling about Bitcoin price levels today and, I guess, how aggressive you’re allowed to be with with your loan book. Are you feeling good about where things are today? Are you expecting some sort of pullback?

And I guess, if not, does that let you be a bit more aggressive with the loan book, as we kinda look in the second half of the year? Thanks.

Herman, CEO, N Alpha: That’s a very good question. We we are a risk management company, so we take, risk management as our top priority. So it’s important for a lending institution to be, you know, lasting decades and decades. So it’s important to realize that when you’re looking at being in the crypto market, you need to be able to look at cycles. There are gonna be up cycles.

There are gonna be down cycles. So what that means is from a product offering, you gotta be able to address both type of cycles and in between. So if you look at how we’re growing and and where the products are growing, for example, margin loans are doing very well. So when Bitcoin continues to grow, people want margin loans. It’s more flexible.

Right? You you you meet your LTV. If LTV gets too low, you could take it out, your Bitcoin. If LTV gets too high, you gotta then, you know, be able to to get that LTV down in a very short manner. So so that kind of product as well, and it’s driving our growth.

Right? If you go back to ’22, ’23 where, you know, you we were before this whole, you know, Bitcoin bull market where Bitcoin was not doing as well, those in those type of periods, people tend to buy machines over financing, so you had more machine loans. Right? And then that extends over two years. So so we we can have, you know, different products for different environment.

And then for hash rate loans, we’re not as sensitive to the cycle because, as you know, Bitcoin is a is a net profitable business. And at the end of every month, after the investor is able to accumulate that Bitcoin mining for for the whole month, we we then help them pay the bill at the end of the month. So it’s always accretive to whatever collateral holding that they have. So this thing continues whether it’s in, you know, winner or or or a crypto bull market. Right?

So so I think it’s having these kind of products. So as we’re looking at Ethereum, as we’re looking at other products and so forth, it would, you know, be able to make our overall business even more sound. And as we enter digital goal, that would make our collateral, right, even more stable. So these are the things that we’re looking at from a risk management perspective. As long as, you know, the collateral is there to to support the loan, we’re not as concerned.

And I think our customers will will follow our step in in diversifying. So that’s why we think, you know, with Bitcoin, you know, having done so well over the last two years, at some point, people are gonna be on a defensive play. People want more stable stability in their crypto. So going into digital goal, I think, makes sense. Right?

Before anything happens, they take that long position so forth. So I think customer over time will will see how we play, and they’re gonna mimic, what we do, and then that creates, you know, more transaction activities.

Edward Eagles, Analyst, Compass Point: Got it. Makes sense. And then, some two other quick ones. Did you talk about the target LTV you have for Ethereum? I guess, is that different, than the the BTC loans?

Herman, CEO, N Alpha: It it’s in the similar range.

Edward Eagles, Analyst, Compass Point: Okay. Okay. Then just one more for me. The it looks like the, tech, financing fee or sorry. Not the tech.

The, the tech platform fee, actually increased in the second quarter, to to a new all time high. I guess, how are you thinking about, I guess, your your fee rates across the board, whether it’s, the tech financing fee or the or the the tech platform fee? Is there any more opportunity to to increase you though those over time?

Herman, CEO, N Alpha: Yeah. I mean, I think it’s a function of the market. Right? So so when when the whole crypto market is good, there’s more a demand for these type of loans. And with our brand getting better known, the fact that we’re we’re we’re now public under SEC scrutiny, people feel more comfortable with their crypto deposit, their collateral, so forth.

I think all of these things are positive for a brand and positive for for, us to be able to, you know, give us more value to the customer so people are willing to pay more. So I think there there’s a potential upside, especially if we go into The US market. What we noticed is that in The US market, people’s charge much, much more than, for example, in the Asian market. So I I’m pretty excited about that opportunity.

Edward Eagles, Analyst, Compass Point: Great. Thanks, Anaya. Congrats on the quarter.

Herman, CEO, N Alpha: Great.

Conference Operator: Our next question comes from Kevin Dede from H. C. Wainwright.

Michael Dobbin, Analyst, H.C. Wainwright: This is Michael Dobbin on the line for Kevin. Looking at depreciation cycles for inference hardware, how will you manage residual value risk and protect loan margins when financing inference compute equipment versus Bitcoin mining?

Herman, CEO, N Alpha: That’s a very good question. So that’s one of the reason why we’re taking the time to pilot test our machines. So you’re looking at several things. Right? You’re looking at, first of all, what is the return if if you’re doing PWO POW mining?

What is the return if you were to resell compute to developers? Right? At the same time, you’re looking at your total cost of operation. So what what’s your breakeven point? So to answer your question, you we you know, we obviously make calculations on these type of things when we do it.

But when we actually run this operation, then we gotta experiment. So once we have the data point to support that, then then that’s how we would structure our loans. This is very similar when we first, you know, started with BGC mining. So I think what we have advantage in this area is that, you know, we we understand because we we’ve been in, you know, Bitcoin mining for so long. We have operations across 10 states.

We understand at the municipality level what’s the cost of operation. What what’s cost of electricity? How good is the Internet connection lines? You know, all the various factors, to support that operation. So we make a good, determination on on, you know, which state, which site, to do this thing, and then we gotta have the compute, running for a while to be able to have data to support.

Can we really, you know, keep this, you know, cost at the level that we had originally planned? At the same time, you know, we have to work with partners to say, well, you know, our customers will come in to buy these machines. They’re looking for ROI. How much can we sell these compute? So so we gotta have the partner so that we could redistribute the compute if we need to and then also try, you know, POW mining at the same time.

So to answer your question, it’s not just one factor. It’s all of this because customers are coming in to make an investment, looking at ROI. We need to test this operation and before we can make that loan risk management, decision. And that’s exactly what we’re doing.

Michael Dobbin, Analyst, H.C. Wainwright: That’s helpful, Herman. One follow-up question. How much of Antalpha’s growth is from existing clients scaling up versus entirely new relationships? And how do you expect that mix to evolve, particularly outside of Asia?

Herman, CEO, N Alpha: Yeah. I think in my prepared remarks, we we talked about, new customers. 40% of it is, new customers. So so you saw a number of customer growth this quarter compared to last quarter. We we’re seeing significant growth in the number of customers.

But, obviously, from a revenue amount, from a low amount, new customers, they come in, you know, it’s middle of the quarter and so forth. So, proportionally, they’re gonna, take up less. So I think that’s one point. We we are, you know, extending outside of Asia. Our brand is getting better.

Customer, you know, have done many many of them have had a relationship with us taking on loans for multi years. So so our good service because, you know, especially when you’re when you’re when you’re a minor, what you need is the hand holding after. Right? You you’re buying a machine. You’re hoping a return, you know, over the next few years.

So so whereas if you buy the machine yourself, then it’s yours. Everything afterwards, you gotta figure out how to operate it. We’re trying to handle our customers to go through all of that. So it’s very important post sales, you get that service support. So I think it’s all of this, our our brand, the fact that we’re now listed, the fact that we’re applying for a license in Singapore, the fact that, you know, we’re giving them good service post sales buying the machines and so forth.

I think all of that is, you know, helping, people in in the, this industry. And that’s why, you know, not in addition to out of outside of Asia, we’re we’re expanding in addition to, you know, listed companies who are have to do their disclosure and so forth feel feel comfortable coming in and making this a significant part of their overall business.

Michael Dobbin, Analyst, H.C. Wainwright: Great. Thank you, Herman.

Herman, CEO, N Alpha: Thank you, Michael.

Conference Operator: Thank you. Next, we have Darren Aftidi from Roth. Please go ahead.

: Hey, guys. I apologize for jumping on late. Just a bunch of conference calls, but wanted to ask a few things. Herman, on the customer profile of the new customers of 40% you referenced, is there any way to kind of, I guess, one, frame up what these customers look like? And then two, when they start working with you know, is this dipping their toe in the water?

Are they jumping into the deep end? Just kinda give us a general sense for what pipeline with new customers, not necessarily your new customers, but the ones that are being onboarded, what they could look like, you know, six, twelve, eighteen months from now in terms of aggregate kind of value. And then I’m curious with the Ethereum and Digital Gold, when you guys talk about pilots, what are some of the the KPIs you’re sort of looking at in order to go from pilot to full kind of rollout? And then my last one was just this is more of a theoretical question, but there’s a lot of talk now with so much adoption of Bitcoin and whether it’s in U. S, other parts of the world, and these potentially being put into people’s retirement accounts, etcetera, that maybe the four year cycle won’t hold the same bell curve it has in the past, and maybe that doesn’t happen immediately.

But I guess the general question is, is you being a risk management platform is what are your general thoughts about kind of peaks versus crypto winners? And does your business become a little bit more maybe stable peak to trough as you kinda grow in the out years? Thanks.

Herman, CEO, N Alpha: Okay. Let me, answer these questions in reverse order. I think let me take the big Bitcoin peak and trough, and, you know, I sense some some concern with, you know, current pricing that that, you know, price could be volatile. That’s why we’re in the business of Bitcoin mining and not helping people buy, you know, spot gold. Right?

So so if you’re buying spot, you’re you’re making a prediction that that current price makes sense that that in the future, it’s gonna continue to go up. Right? Whereas Bitcoin mining is you’re buying a machine. This thing does mining for several years. And when prices are high, you you’re gonna reap rewards with better prices, but your cost, especially electricity cost, is gonna be higher.

When prices are low, your your related costs are gonna come down. So you’re really more I I always frame it like buying machines more like a multiyear option of going into gold kind of, you know, cost average over time. So they’re not as sensitive to as if you just say, hey. You know, I have this much money. It’s a onetime.

Let’s bet on this price. That way, you could be wrong, and you would bust. If if you could be right, you could make a lot of money. Right? So Bitcoin mining is kind of a derisked way of of of being able to do that cost average over time.

So that’s why, you know, for us, you know, using the machine as collateral, using Bitcoin as collateral and so forth, we we deploy similar risk management measurements. So that’s why I think our business is probably better than transactional business, which probably does, you know, much higher when when the price is high and then probably much lower when when, you know, price is low. Okay? Second question is, you know, pilot gold, what are we gonna do? Ultimately, I think for us as a lending platform, obviously, if you have a large balance sheet, if you have a lot of gold, if you have being able to have less volatility with your collateral, this business, you know, has, ability to run much, much longer, much, much more stable.

So that’s what we’re looking at. If you look at our, you know, ’2, there there’s about $3,000,000,000 worth of of BTC supporting our loan. Right? If you look at the total facilitated loans, there there’s $3,000,000,000 to do that. We’ve had a great run-in the last two years, and and we think that we want the overall collateral to be more defensible.

To do that, I think it you need to have a blend of digital versus, Bitcoin. You know, just like if someone were to make an investment, sure enough, equities, you know, have higher growth. Sure enough, if you have, like, high-tech or some of the other ones, they they go really fast. But if you’re looking at, you know, Canada or Horizon, you want your portfolio to to have less volatility, then you probably wanna carry some bonds. Right?

So so the bond and equity thing, I think it’s analogous to digital assets when there’s a lot of people looking at crypto. You want something to balance that. I think part of it is the overall holding. Part of it is you you wanna have a channel for flight to safety. Right?

You you see certain shocks in the last six months. And if you have a chance to to fly to safety when there are these phenomenal global shocks and so forth, then then people are feel more comfortable in going there. So I think that’s where we are with a digital goal looking at this. And plus, you know, if you go to Asia, you know, if you if you go to, like, you know, the the Chinese culture, the South East and many, countries and so forth, people hold physical gold. They feel more comfortable.

You know, a big part of Asia was in in in war with their their they they live through wars in our lifetime, so therefore people feel more comfortable with holding gold. But we think holding physical is not as good as, for example, holding, you know, TetherGold. You know, you have a great counterparty, and this thing, you can actually take a TetherGold, go to Swiss government, and be able to redeem a bar. These kind of things that that makes it much easier than than previously. If you buy a lot of gold, where are gonna store it?

You have to pay for storage cost. So so we’re testing all of these thing out. We think there’s a huge opportunity. Gold is, you know, $23,500,000,000,000, 80% of the T bill. So so if you just take, for example, 1% of that’s over $200,000,000,000, right, just as, when you look at USDT and USDC, 1% of treasury bill, right, I think, digital gold has the opportunity to $200,000,000,000.

So so we’re looking at, you know, number one, buying gold to stabilize our collateral. And secondly, where is the opportunity for people to hold more digital versus, physical goal and and then make it more convenient, make it more safe, have them a peace of mind because it’s something that they could, you know, go actually redeem the goal bar if they if they want to. Okay. So so we’re testing those things out, and then as we have more information, we’ll share with you, in in future quarters. Okay.

Last question is customer mix. So our customers well, if you look at, you know, the the last, two and a half years, we started out with just traditional miners, people who really know how to do a mining, who’s been doing it before. We’re making it easier because we’re allowing them to select so many sites, in The States, and we have people to help them do operations so they don’t have to physically be in The US, travel to The US. Right? So as we start deploying that, what we find is that people who are just interested in in a a Bitcoin mining can now, participate.

So you have, you know, the Kangos of the world with their public company. You have family offices. You have other people that, you know, have, not done so well with with some of their core businesses that are coming in and say, hey. Look. This is relatively light operation.

You don’t have to put a lot of people behind this thing, and you can make this thing work. So so you can think of us getting that that over 40% number of customer growth. Some of that is still traditional miners. We probably have many of the larger private miners in Asia. Some of that coming in are are probably smaller.

But overall, you know, our our average loan per customer is, close to 40,000,000. So so we’re still talking about sizable customers, and and we’re just seeing them branching out those that are traditionally who knows BDC mining and more and more as a proportion. Those that less knows less about mining, but just interested in doing Bitcoin, and they want to have this cost average strategy rather than, you know, buying spot prices. So that that’s what we’re seeing as a trend.

: That’s helpful. Thanks, Herman.

Herman, CEO, N Alpha: Okay. Thank you, dear.

Conference Operator: Thank you. That concludes the q and a session. We will turn the call back to Herman for closing remarks. You may go ahead.

Herman, CEO, N Alpha: Thank you, operator. To conclude on q two, as we move forward, we remain focused on risk management first, scaling globally, and delivering long term value to our shareholders. We are proud of the momentum that our team has built in the 2025. Our year over year revenue growth rate has accelerated from 41% in q one to 49% in q two, and we are forecasting the revenue growth rate to accelerate to in the 60% range on a year over year basis. As a fintech platform, 40% of our incremental revenue in q two flow to the bottom line, increasing our EBITDA margin from 13 to 22%.

With the current administration embarking on US, the crypto capital of the world in building a strategic Bitcoin reserve alpha as a Bitcoin mining infrastructure play, stands to benefit from policy tailwinds. Looking ahead, we are excited about the early stage of mainstream adoption for Bitcoin, our entry into US market, and the potential opportunity to increase our TAM. We also plan to deepen our treasury strategy and digital and to increase resilience on our collateral. In the process, also to assist our clients to derisk their crypto holdings. With global asset allocation increasing shifting toward digital assets, digital gold will become an important part of digital asset holding, we believe, serving both as a hedge against inflation and stabilizing agent against macro volatility.

This concludes our call today. Have a great day.

Conference Operator: Thank you again for joining our call. You may now disconnect.

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