Clas­si­fi­ca­ti­on of GBC AG to Ad­van­ced Block­chain AG

From rea­lignment to sca­ling

Die Ad­van­ced Block­chain AG (ABAG) un­der­went a pro­found trans­for­ma­ti­on in fis­cal year 2024. The pro­cess cen­te­red on a com­ple­te ma­nage­ment over­haul, the re­so­lu­ti­on of ir­re­gu­la­ri­ties at the sub­si­dia­ry In­c­re­du­lous Labs Ltd., and the in­tro­duc­tion of strict go­ver­nan­ce and con­trol me­cha­nisms. While the pa­rent company’s ope­ra­tio­nal and fi­nan­cial per­for­mance in 2024 was shaped by si­gni­fi­cant one-off ex­pen­ses, the cle­a­nup me­a­su­res and port­fo­lio pro­gress show that ABAG is now in a stron­ger po­si­ti­on for sus­tainable growth. This on­go­ing res­truc­tu­ring is es­sen­ti­al to se­cu­ring the company’s fu­ture. In­de­pen­dent au­dits un­co­ver­ed de­fi­ci­en­ci­es da­ting back to be­fo­re the cur­rent ma­nage­ment took over, while also con­fir­ming that today’s struc­tures rest on an in­de­pen­dent and sta­ble foun­da­ti­on. The re­sul­ting cos­ts are un­avo­ida­ble and should be seen as an in­vest­ment in sta­bi­li­ty, as­set pro­tec­tion, and trans­pa­ren­cy.

The pa­rent com­pa­ny Ad­van­ced Block­chain AG ge­ne­ra­ted re­ve­nues of €226k (pre­vious year: €105k), more than doubling year-over-year, but it re­mains hea­vi­ly de­pen­dent on in­co­me from its sub­si­dia­ry In­c­re­du­lous Labs Ltd., with over­all re­ve­nue le­vels still mo­de­st. High le­gal, au­di­ting, and con­sul­ting ex­pen­ses com­bi­ned with ex­tra­or­di­na­ry wri­te-downs led to a net loss of €-1.78m (pre­vious year: €-0.88m). De­spi­te this loss, ABAG re­ports a so­lid equi­ty base of €8.88m (De­cem­ber 31, 2023: €9.56m), cor­re­spon­ding to an equi­ty ra­tio of 68.8% (De­cem­ber 31, 2024: 69.7%). The ba­lan­ce sheet was streng­the­ned by the re­so­lu­ti­on of tax lia­bi­li­ties from pre­vious ye­ars and by sta­bi­li­zing li­qui­di­ty. The auditor’s qua­li­fied opi­ni­on re­la­tes so­le­ly to un­cer­tain­ties around re­ceiv­a­bles from In­c­re­du­lous Labs.

The Cy­pri­ot sub­si­dia­ry In­c­re­du­lous Labs re­mains the core of the port­fo­lio. In 2024 it achie­ved re­ve­nues of USD 229k and a net pro­fit of USD 1.25m, while at the same time re­cor­ding sub­stan­ti­al im­pairm­ents on pro­jects. Fo­ren­sic au­dits con­firm­ed ca­ses of as­set mis­ap­pro­pria­ti­on. As a re­sult, the au­di­tor is­sued a dis­clai­mer of opi­ni­on for both 2023 and 2024. The new ma­nage­ment has sin­ce im­ple­men­ted a mo­dern con­trol sys­tem with mul­ti-si­gna­tu­re wal­lets and in­sti­tu­tio­nal cus­t­ody so­lu­ti­ons, while also in­itia­ting le­gal steps to re­co­ver lost as­sets.

Block­chain and cryp­to­cur­ren­cy mar­kets ex­pe­ri­en­ced a his­to­ric ups­wing in 2024: Bit­co­in and Ethe­re­um re­a­ched new mul­ti-year highs, and over­all mar­ket ca­pi­ta­liza­ti­on sur­pas­sed USD 3.5 tril­li­on. ABAG’s port­fo­lio be­ne­fi­ted, par­ti­cu­lar­ly from the suc­cessful to­ken launch of peaq, which brief­ly achie­ved uni­corn sta­tus. Ho­we­ver, the de­cli­ne of the PEAQ to­ken in the first half of 2025 high­ligh­ted the high vo­la­ti­li­ty and de­pen­dence on a few key as­sets. As of June 30, 2025, the va­lue of the 15 lar­gest hol­dings was re­por­ted at around USD 15m, down from USD 56m at the end of 2024. In re­spon­se, ma­nage­ment ad­opted an ac­ti­ve di­ver­si­fi­ca­ti­on stra­tegy with a fo­cus on more li­quid as­sets.

Ba­sed on the top 15 port­fo­lio po­si­ti­ons, af­ter de­duc­ting hol­ding cos­ts and fac­to­ring in a 30% la­tent up­si­de, the NAV stands at €15.36m or €4.15 per share. Ta­king this up­si­de po­ten­ti­al into ac­count, we con­firm our Buy ra­ting.

You can down­load the re­se­arch here: 20250919_Anno_ABAG_EN

Cont­act for ques­ti­ons:
GBC AG
Hal­der­stras­se 27
86150 Augs­burg
⁰⁸²¹⁄₂₄₁₁₃₃ 0
research@​gbc-​ag.​de
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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:
https://​www​.gbc​-ag​.de/​d​e​/​O​f​f​e​n​l​e​g​ung
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Com­ple­ti­on: 18.09.2025 (16:30 Uhr)
In­iti­al pu­bli­ca­ti­on: 19.09.2025 (10:30 Uhr)