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K33 AB reported its second-quarter earnings for 2025, revealing a substantial increase in revenue compared to the previous year. Despite this growth, the company’s stock price saw a decline of 3.4% following the earnings release. With a beta of 3.1 and significant price movements, InvestingPro data shows K33 exhibits high volatility compared to the market. The company continues to expand its Bitcoin treasury strategy and anticipates further growth in trading volume for the upcoming quarter. InvestingPro subscribers have access to 8 additional key insights about K33’s market behavior and financial health.
Key Takeaways
- K33’s Q2 revenue more than doubled year-over-year.
- The company experienced an 11% drop in market trading activity, outperforming the general market’s 25% decline.
- K33 launched a new Smart Limit Orders feature, enhancing trade execution.
- The company is expanding its Bitcoin holdings and aims for a significant increase.
- K33’s stock fell 3.4% post-earnings.
Company Performance
K33 demonstrated strong performance in the second quarter of 2025, with revenue more than doubling compared to the previous year. However, revenues saw a slight decrease from the previous quarter. The company managed to achieve positive operational cash flow and recorded an adjusted EBITDA of 116,000 Swedish kronor. Despite a general market downturn with a 25% drop in trading activity, K33’s decline was limited to 11%, showcasing its resilience.
Financial Highlights
- Revenue: More than doubled year-over-year
- EBITDA (adjusted): 116,000 Swedish kronor
- Trading activity: 11% decline, compared to a 25% market average drop
Outlook & Guidance
Looking forward, K33 projects that its trading volume for Q3 will more than double compared to Q2. The company is focused on expanding its Bitcoin treasury, currently holding 126 Bitcoin with a target of 1,000. Additionally, K33 anticipates the approval of its MIKA regulatory application before the end of the year, which is expected to strengthen partnerships with financial institutions.
Executive Commentary
CEO of K33 stated, "We are strong believers that Bitcoin will form the foundation of the future of finance." The company is leveraging its strategic Bitcoin treasury to differentiate itself in the market. The CEO also highlighted, "With MIKA now active... we expect partnerships to become ever more important," signaling a positive outlook on regulatory developments and potential collaborations.
Risks and Challenges
- Crypto Market Volatility: The ongoing fluctuations in the crypto market could impact trading volumes and revenue.
- Regulatory Environment: Delays or changes in regulatory approvals, such as the MIKA application, may affect strategic plans.
- Competitive Pressure: As the crypto market evolves, K33 faces competition from other integrated trading platforms.
K33’s second-quarter performance underscores its strategic focus on innovation and market adaptation, despite facing challenges in a volatile crypto landscape. InvestingPro assigns K33 a Financial Health Score of 2.23 (FAIR), suggesting balanced operational performance amid market volatility. The company’s proactive steps in expanding its Bitcoin strategy and enhancing its platform capabilities position it for potential growth in the coming quarters. For deeper insights, investors can access K33’s comprehensive Pro Research Report, part of InvestingPro’s coverage of over 1,400 stocks.
Full transcript - K33 AB (K33) Q2 2025:
CEO, K33: Good morning, and welcome to this q two presentation for k thirty three. My name is and I’m the CEO of k thirty three. Most of you probably know what k thirty three is all about. But for those of you who don’t, we’re as a service making it easy and secure to buy, sell and store Bitcoin and other digital assets. We work with high net worth individuals and family offices on the private market and work with corporate clients, financial institutions and professional investors, in the business segment.
We’re operating out of Norway. We are listed in Sweden, but we’re offering our services to a global audience, serving more than seven different fiat currencies on the platform. But we’re not only a brokerage and custodian offering crypto trading. We’re also a Bitcoin treasury company. It means that we are building a strategic Bitcoin reserve.
We launched this initiative towards the ’2 and have now started to accumulate Bitcoin. There are two main reasons why we’re doing this. One, we are strong believers that Bitcoin will form the foundation of the future of finance and we’re more than happy to belong Bitcoin, which we believe will be the best performing assets in the coming years. But in addition, as a broker, we can put that balance sheet to work. We can unlock operational synergies, operational alpha by building a strong balance sheet in Bitcoin.
And this is really why we’re doing it. We’re working our way now towards a thousand Bitcoin as the kind of first milestone that we’ve set and goal we’ve set for ourself. We currently hold a 126 Bitcoin, so we have a good start, but we still have long to go. The operational benefits really comes from strengthening the balance sheet, using Bitcoin as collateral in what is called matched principle trading. The challenge in the market today is that you have to have many accounts on many different trading venues to get full access to all the different markets out there.
It shouldn’t be that difficult. You shouldn’t have to split your portfolio, do KYC on a lot of different venues, do due diligence on different venues. You should be able to have one broker that you trust and rely on and then it should be the brokers job to give you access to the full market. That is what we’re building in K33 and that is how we’re going to use our balance sheet. By using Bitcoin as collateral, we can mirror out other venues to our clients, derivative venues, large national markets, such that clients of k thirty three can have one account with k thirty three, have all of their assets with one partner, no need to splitting the portfolio, while still getting full market access.
Some people might think, well, that sounds very convenient, but wouldn’t k thirty three just be another middleman and a cost? But the truth is that by aggregating the flow and the volume across all our clients, we can obtain preferential terms with the different markets and venues that each of the clients would be unable to obtain themselves. And in this way, we can both carve out a healthy margin for our self while offering competitive pricing to our end clients. Another way we are looking to use our balance sheet in Bitcoin to expand better services to our clients is in Bitcoin collateralized lending. Right now we are in discussions with several banks around the model where a client can park Bitcoin as collateral with us.
The bank will issue the loan to this client and then k thirty three as a company will write a guarantee to the bank. We will write the guarantee backed by the strength of our balance sheet, not the collateral provided by the client. But we will be willing to write the guarantee because of that collateral. And the beautiful thing about this triangle model is that in this way, we can enable banks to issue Bitcoin collateralized loans without the bank having to touch the Bitcoin. This is something I think will take a little bit of time, but truly be kind of unlocking the possibilities for k thirty three to deepen collaboration with banks in addition to potentially offering custody services and execution services.
Then, as this is a quarterly presentation, I mean, it takes a look at how it went financially. Q two was a great quarter for k thirty three. We more than doubled our revenue compared to last year, but we did see a small setback compared to the last quarter. However, we continue to win market shares. In q two, the general market saw a drop of 25% in trading activity, while we only experienced a drop of 11%.
And this winning of new market share enabled us to actually have a positive operational cash flow, producing an EBITDA adjusted for non cash items of a 116,000 Swedish kronor. And also, if you look ahead, this winning of market share and the ramp up that we’ve done operationally very much continues after the end of the quarter. If you look at the trading volume in k thirty three markets, those are now on track to be more than twice as high in q three as compared to q two. And this is a testament to our market fit that what we are offering and bringing to market is not just another local exchange, it’s not just another crypto exchange. It’s actually something that there is in high demand for out there.
And with Mika now coming into effect in Norway and Europe with more and more institutional players coming into the sector, I expect that we will be able to keep growing the business rapidly in the coming quarters and years. But we don’t only experience strong growth with what we have, we continue to develop the platform. And I’m pleased to announce that we now recently have launched Smart Limit Orders. Smart Limit Orders is really a great execution tool for those who want to set a price at which they want to trade without being revealed on the order book, without running the risk of a partially filled order. Using smart limit orders on k 33, our users can set precisely the price at which they want to trade and then automatically have the trade execute when that price is hit.
And it really gives a level of precision that is hard to get elsewhere because you’ll get exactly the price you set. There’s no other costs, there’s no hidden fees. Our margin is baked into the price that you’ll get. So you can know in advance that if the price hits a certain level, you’ll get exactly that amount traded. And you can do it with really large order as well and benefit from the deep liquidity that we also offer for our RFQ and the standard market orders.
And as I mentioned, Mika is now coming into effect and we have delivered our application to the Norwegian FSA. I expect the process to be a little bit back and forth as this is both new to the regulator and to us, but that we will be approved in due course before year end and that with a MYC application in place, we will be in a strong position to continue our product development, but also continue our work with partnerships with brokers, asset managers and banks in the traditional financial system. Players that have been waiting for regulatory clarity and client demand who’s now getting ready and getting green signs on both demand and regulation. So when I look ahead for the rest of the year, it’s gonna be more of the same and that’s actually a great thing. We’re gonna buy more Bitcoin and continue to strengthen our balance sheet.
We’ll do it probably both with free operational cash flow and using the capital markets when we see opportunities to do so in accredited ways to our shareholders. The strengthening of our balance sheet has already resulted in higher margins, which is what enabled us to have a positive cash flow in Q2. And we expect the synergy between the operational business and the treasury initiative to strengthen and accelerate in the quarters and years to come. With Mika now active in Norway, rolled out in Europe and soon licensed for k 33, we expect partnerships to become ever more important. We have a lot of ongoing dialogues, a lot of interest, from very promising potential partners.
Working with banks, of course, it will take time, but I’m confident that the momentum is on our side. We are in the best position and we will succeed eventually in becoming a partner for traditional financial institutions as they realize that they have to be a part of the Bitcoin ecosystem and the broader crypto ecosystem. So with that said, I thank you for taking time to watch this presentation. I invite you to read the full report for more details or check us out on social media on our homepage to follow our development going forward. Have a great day.
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