Put companies on watchlist
Advanced Blockchain AG
ISIN: DE000A0M93V6
Company Snapshot
New: Enable Investor Alerts
Be informed about new publications
New: AI Factsheet

Corporate News meets AI! 
Content analysis and summary

Advanced Blockchain AG · ISIN: DE000A0M93V6 · EQS - Analysts (114 News)
Country: Germany · Primary market: Germany · EQS NID: 19473
19 April 2024 02:01PM


Original-Research: Advanced Blockchain AG - from GBC AG

Classification of GBC AG to Advanced Blockchain AG

Company Name: Advanced Blockchain AG
ISIN: DE000A0M93V6

Reason for the research: Research Comment Recommendation: Buy
Target price: 17.64 EUR
Target price on sight of: 31.12.2025
Last rating change:
Analyst: Matthias Greiffenberger, Julien Desrosiers

Company performance in a challenging environment exceeds expectations with significant value increases in the top 10 portfolio positions - target price raised to €17.64 (previously: €11.00)  
Advanced Blockchain AG has published preliminary figures for the fiscal year 2023. The revenue of Advanced Blockchain AG fell to €5.2 million in 2023 (from €14.73 million the previous year), but still exceeded the forecasted mark of €5.0 million. The significant increase in preliminary EBIT to €2.2 million, an improvement of more than 40% compared to 2022, demonstrates effective cost control and a strengthened focus on high-margin activities.
The appreciation of the top 10 portfolio (according to AVS appraisal) from €39.65 million by more than 45% to €57.5 million is particularly noteworthy. This shows Advanced Blockchain AG's strategic competence in investing early in promising blockchain technologies and successfully developing them. With the development of the AI-supported research platform 'ABX Analytics,' Advanced Blockchain AG continues to position itself as a leader in innovation in the blockchain sector and aims to expand its service offering and generate stable, recurring revenues.  
Furthermore, Advanced Blockchain AG has started the new fiscal year 2024 with impressive financial results. The company has already generated over €1 million this year and over €3 million in the last ten months from the sale of assets, which were sold at significant profits. As of April 15, 2024, the company's cash balance amounts to more than €2 million.  
Advanced Blockchain AG plans to use the free capital to drive its expansion plans. A notable investment was the acquisition of rights to Celestia (TIA) tokens, which have already generated a significant book profit exceeding ten times the original investment.
In summary, Advanced Blockchain positions itself successfully for further growth in the dynamic blockchain industry through effective asset management and strategic investments. As part of the growth strategy, Advanced Blockchain is actively recruiting new talent to strengthen the team and further advance the development of ABX Analytics.  
Given the recent surge in Bitcoin to an all-time high, we see a significant improvement in the market environment. This leads us to gradually reduce our valuation discount, which was set during the 'Crypto Winter.' Therefore, we are raising our rating for Advanced Blockchain AG's shares. The Bitcoin halving, expected tonight at 22:30, will halve the reward for mining a block from 6.25 to 3.125 Bitcoins. Historically, such halvings have led to significant price increases as they slow down the new production of Bitcoins.
The current undervaluation of Advanced Blockchain AG is particularly evident when considering only the 10 largest positions in the portfolio and the entire market capitalization. These top positions alone, according to the AVS valuation report, represent a fair value of at least €57.5 million, while the market capitalization of Advanced Blockchain is currently only about €15.14 million (Tradegate 19.04.2024 11:01). We estimate the total value of the portfolio, including updated valuations, at around €105 million. We estimate the holding costs at about €2 million. Thus, we have estimated the company value based on the net asset value (NAV) at about €103 million, which corresponds to a value of €27.14 per share. With the significantly improved market situation in the crypto markets, we are gradually reducing our original 'Crypto Winter' discount from 53% to 35%.  
This has led us to determine a fair value per share of €17.64 (previously: €11.00). Given the considerable upside potential, we assign a 'buy' rating.

You can download the research here:

Contact for questions
Halderstraße 27
86150 Augsburg
0821 / 241133 0
Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter: http://www.gbc-ag.de/de/Offenlegung
Date (time) of completion: 19.04.2024 (12:40) Date (time) of first publication: 19.04.2024 (14:00)

-------------------transmitted by EQS Group AG.-------------------

The issuer is solely responsible for the content of this research. The result of this research does not constitute investment advice or an invitation to conclude certain stock exchange transactions.

Visual performance / price development - Advanced Blockchain AG
Smart analysis and research tools can be found here.

This publication was provided by our content partner EQS3.

EQS Newswire
via EQS - Newsfeed
EQS Group AG ©2024
Karlstraße 47 D-80333 München
+49 (0) 89 444 430-000

The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.

The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.

If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.

For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.

1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.