Ori­gi­nal-Re­se­arch: Ad­van­ced Block­chain AG (von GBC AG): Buy

Re­se­arch | 14 März 2024 00:00

Ori­gi­nal-Re­se­arch: Ad­van­ced Block­chain AG – from GBC AG­Clas­si­fi­ca­ti­on of GBC AG to Ad­van­ced Block­chain AG

Com­pa­ny Name: Ad­van­ced Block­chain AG
ISIN: DE000A0M93V6

Re­ason for the re­se­arch: Ma­nage­ment in­ter­view
Re­com­men­da­ti­on: Buy
Tar­get pri­ce: 11.00 EUR
Tar­get pri­ce on sight of: 31.12.2024
Last ra­ting ch­an­ge:
Ana­lyst: Mat­thi­as Greif­fen­ber­ger, Ju­li­en Des­ro­siers

‚Our top 10 in­vest­ments alo­ne amas­sed a va­lue of 57.5 mil­li­on eu­ros by the end of 2023 – no­ta­b­ly ex­cee­ding our mar­ket ca­pi­ta­liza­ti­on.‘

In this in­ter­view, GBC speaks with Si­mon Te­li­an, the CEO of Ad­van­ced Block­chain AG. Sin­ce our last GBC in­ter­view in Sep­tem­ber 2023, the mar­ket ca­pi­ta­liza­ti­on has more than dou­bled. Ba­sed on our last va­lua­ti­on, we re­main op­ti­mi­stic that the­re is fur­ther po­ten­ti­al for growth. We ex­pect to ad­just our va­lua­ti­on with the pu­bli­ca­ti­on of the 2023 an­nu­al re­port.

GBC AG: Can you brief­ly in­tro­du­ce Ad­van­ced Block­chain AG?

Si­mon Te­li­an: Ad­van­ced Block­chain AG is the first and only pu­blicly traded com­pa­ny on the Ger­man stock mar­ket spe­cia­li­zing in de­cen­tra­li­zed block­chain tech­no­lo­gies. We are a key play­er in the block­chain in­dus­try, fo­cu­sing on re­se­arch, in­cu­ba­ti­on, and in­vest­ments – both equi­ty and to­kens – in dis­rup­ti­ve tech­no­lo­gies in the block­chain sec­tor. Our cur­rent port­fo­lio in­cludes more than 30 block­chain com­pa­nies or pro­jects. Alo­ne, our top 10 in­vest­ments had a va­lue of 57.5 mil­li­on eu­ros by the end of 2023 – si­gni­fi­cant­ly more than our mar­ket ca­pi­ta­liza­ti­on. Our pri­ma­ry fo­cus is on in­cu­ba­ting and in­ves­t­ing in pro­mi­sing pro­jects in the de­cen­tra­li­zed fi­nan­ce sec­tor, also known as ‚DeFi,‘ which is curr­ent­ly the fas­test-gro­wing area in the block­chain world. This en­ables users to ac­cess fi­nan­cial pro­ducts fric­tion­less­ly, wi­t­hout the in­ter­me­dia­ti­on of cen­tra­li­zed in­sti­tu­ti­ons such as tra­di­tio­nal banks. Other key fo­cus are­as in­clude ap­pli­ca­ti­ons and com­pa­nies in the Eco­no­my of Things, whe­re con­nec­ted de­vices not only com­mu­ni­ca­te with each other but also crea­te eco­no­mic va­lue for the user. The port­fo­lio is roun­ded out by in­vest­ments in com­pa­nies that enable fric­tion­less com­mu­ni­ca­ti­on bet­ween dif­fe­rent block­chain tech­no­lo­gy pro­to­cols, also known as Cross-Chain In­ter­ope­ra­bi­li­ty. Ad­di­tio­nal­ly, Ad­van­ced Block­chain is not only an ear­ly-stage in­ves­tor but also a lea­ding ven­ture buil­der, sup­port­ing its in­vest­ments with an ex­ten­si­ve net­work of soft­ware de­ve­lo­pers and a strong fo­cus on re­se­arch. In his­to­ri­cal con­text, Ad­van­ced Block­chain has been in­forming ma­jor Ger­man com­pa­nies about the va­rious ap­pli­ca­ti­ons of block­chain tech­no­lo­gy sin­ce 2018, thus buil­ding a broad net­work even in the tra­di­tio­nal cor­po­ra­te en­vi­ron­ment. Sin­ce 2020, Ad­van­ced Block­chain has been in­ten­si­ve­ly in­vol­ved in in­cu­ba­ti­on,
in­vest­ments, and buil­ding tech­ni­cal ex­per­ti­se in re­se­arch to crea­te an ex­tre­me­ly suc­cessful and va­luable port­fo­lio.

GBC AG: How does your com­pa­ny iden­ti­fy and eva­lua­te po­ten­ti­al in­vest­ments, and what cri­te­ria are de­cisi­ve?

Si­mon Te­li­an: The ba­sis of the in­vest­ment pro­cess is al­ways a com­pre­hen­si­ve ana­ly­sis of the ap­pli­ca­ti­on and im­ple­men­ta­ti­on po­ten­ti­al of the in­vest­ments. In ad­di­ti­on, the qua­li­ty of the foun­ding team and the eco­no­mic and fi­nan­cial po­ten­ti­al are cru­cial for crea­ting va­lue for the com­pa­ny. Our ex­ten­si­ve and long-stan­ding ex­pe­ri­ence in block­chain tech­no­lo­gy si­gni­fi­cant­ly sup­ports the de­cis­i­on-ma­king pro­cess. Th­rough ABX Ana­ly­tics, we will in­cre­asing­ly au­to­ma­te this pro­cess and of­fer it to ex­ter­nal cus­to­mers or in­ves­tors. Our broad net­work is cer­tain­ly the de­cisi­ve fac­tor in iden­ti­fy­ing in­te­res­t­ing in­vest­ment op­por­tu­ni­ties ear­ly on; num­e­rous op­por­tu­ni­ties have been iden­ti­fied in the past in this way. We rely on the ge­ne­ra­ted va­lue from syn­er­gies with other in­ves­tors in our net­work. Co-in­vest­ments with our part­ners are com­mon, both in the pure equi­ty in­vest­ment area and in our in­cu­ba­ti­on pro­jects.

GBC AG: What spe­ci­fic stra­te­gies have led to the 45% in­crease in the ten lar­gest port­fo­lio va­lues?

Si­mon Te­li­an: The fun­da­men­tal prin­ci­ples of our in­vest­ment stra­tegy re­main un­ch­an­ged. Ho­we­ver, the out­stan­ding in­crease is due to se­ve­ral fac­tors af­fec­ting both our port­fo­lio com­pa­nies and the over­all mar­ket. The cen­tral fac­tor is cer­tain­ly the in­cre­asing ac­cep­tance of cryp­to­cur­ren­ci­es and block­chain tech­no­lo­gy in so­cie­ty. The ac­cep­tance of block­chain ETF funds by the U.S. Se­cu­ri­ties and Ex­ch­an­ge Com­mis­si­on (SEC) has made in­ves­t­ing in cryp­to­cur­ren­ci­es in­cre­asing­ly so­ci­al­ly ac­cep­ta­ble. Par­ti­cu­lar­ly no­te­wor­t­hy is the re­mar­kab­le in­crease in in­flows into BlackRock’s iS­ha­res Bit­co­in Trust (IBIT), which re­cor­ded a new dai­ly re­cord of $2.2 bil­li­on last month. In ad­di­ti­on, the pri­ce of Bit­co­in re­a­ched its all-time high, sur­pas­sing the $69,000 mark, which brings Bit­co­in into the pri­ce dis­co­very pha­se. All the­se de­ve­lo­p­ments show how the mar­ket has evol­ved po­si­tively in re­cent months. This en­vi­ron­ment leads to gro­wing in­te­rest in many of our key port­fo­lio com­pa­nies, such as Com­posable. The com­pa­ny de­ve­lo­ps bridge so­lu­ti­ons tar­ge­ting va­rious eco­sys­tems such as Ethe­re­um, Cos­mos, and Pol­ka­dot, as well as fu­ture block­chain net­works. The in­te­rest in this dri­ves the in­crease in va­lue si­gni­fi­cant­ly. It is im­portant to high­light the cen­tral pro­blem of cur­rent block­chain tech­no­lo­gy, na­me­ly the lack of in­ter­ope­ra­bi­li­ty, which makes the trans­fer of di­gi­tal as­sets bet­ween dif­fe­rent eco­sys­tems im­pos­si­ble. Com­posable has ta­ken on the chall­enge of de­ve­lo­ping in­no­va­tions to over­co­me this chall­enge and has made con­sidera­ble pro­gress. This is just one ex­am­p­le; each of our port­fo­lio com­pa­nies is dri­ving in­no­va­tions in a key area of the in­dus­try, such as peaq in the Eco­no­my of Things sec­tor, and Po­ly­mer in the de­ve­lo­p­ment of mo­du­lar block­chains.

GBC AG: How has the curr­ent­ly po­si­ti­ve mo­men­tum in the cryp­to mar­ket in­fluen­ced the va­lua­ti­on of your port­fo­lio?

Si­mon Te­li­an: Of cour­se, the po­si­ti­ve mar­ket mo­men­tum has play­ed an im­portant role in the app­re­cia­ti­on of our port­fo­lio. For ex­am­p­le, the Bit­co­in pri­ce was slight­ly abo­ve $27,100 at the time of the in­iti­al va­lua­ti­on in late May 2023, and at the end of De­cem­ber 2023, it was at $42,500. Ho­we­ver, the ch­an­ge in mar­ket dy­na­mics alo­ne is not suf­fi­ci­ent. If the­se port­fo­lio com­pa­nies were not in­no­va­ti­ve and did not de­ve­lop core tech­no­lo­gies that are per­cei­ved as re­mar­kab­le by the mar­ket, we would not have seen such a strong in­crease. Nevert­hel­ess, the­se two aspects are in­ter­con­nec­ted.

GBC AG: Can you ex­plain the si­gni­fi­can­ce of the up­co­ming Bit­co­in hal­ving for the over­all mar­ket sen­ti­ment?

Si­mon Te­li­an: Bit­co­in hal­ving in­vol­ves re­du­cing the rate at which new bit­co­ins are crea­ted. With a fi­ni­te num­ber of bit­co­ins to be crea­ted at most, Bit­co­in hal­ving re­du­ces the sup­p­ly. With de­mand le­vels re­mai­ning con­stant, this can lead to a pri­ce in­crease. Many in­ves­tors and spe­cu­la­tors view hal­ving as a key ca­ta­lyst for po­si­ti­ve pri­ce mo­ve­ments. Po­si­ti­ve pri­ce de­ve­lo­p­ments of­ten ma­ni­fest ear­ly, as in­ves­tors po­si­ti­on them­sel­ves ahead of time. Me­dia also play an im­portant role in at­trac­ting at­ten­ti­on, espe­ci­al­ly now with the in­te­rest of re­now­ned as­set ma­na­gers like Black­Rock and Fi­de­li­ty in the cryp­to in­dus­try. Over­all, I ex­pect hal­ving to con­tri­bu­te po­si­tively to mar­ket sen­ti­ment, along with the up­co­ming Ethe­re­um spot ETF. It is ex­pec­ted that both events will lead to fur­ther si­gni­fi­cant in­flows into the di­gi­tal as­set mar­ket.

GBC AG: What is Ad­van­ced Block­chain AG’s vi­si­on for the fu­ture of Web 3.0?
Si­mon Te­li­an: Our vi­si­on is to be­co­me an in­cre­asing­ly glo­bal play­er in the block­chain field. By in­ves­t­ing in and in­cu­ba­ting in­no­va­ti­ve com­pa­nies and pro­vi­ding young en­tre­pre­neurs with the op­por­tu­ni­ty to crea­te tech­no­lo­gy for the de­cen­tra­li­zed web (Web 3.0). This also in­cludes in­creased in­vol­vement in soft­ware de­ve­lo­p­ment. We have de­mons­tra­ted our com­pe­ten­ci­es th­rough our pre­vious in­cu­ba­ti­on pro­jects, using this key ex­per­ti­se as a si­gni­fi­cant va­lue dri­ver for the next pha­se of the company’s de­ve­lo­p­ment.

GBC AG: Whe­re do you see Ad­van­ced Block­chain AG in the next five ye­ars, and what stra­te­gic goals are you set­ting?

Si­mon Te­li­an: In the co­ming ye­ars, Ad­van­ced Block­chain will con­ti­nue to fo­cus on ear­ly-stage start­up in­vest­ments with a shar­pe­ned and suc­cessful­ly pro­ven in­vest­ment stra­tegy. As men­tio­ned ear­lier, our goal is to be­co­me a lea­ding glo­bal play­er with a pre­sence in emer­ging block­chain mar­kets to ac­cess pro­mi­sing new in­vest­ment op­por­tu­ni­ties. Our in­cu­ba­ti­on busi­ness will in­cre­asing­ly fo­cus on buil­ding in­no­va­ti­ve soft­ware com­pa­nies with a re­cur­ring re­ve­nue mo­del to fur­ther di­ver­si­fy our busi­ness. Ad­di­tio­nal­ly, we see gre­at va­lue in col­la­bo­ra­ting with other ven­ture buil­ders to es­tab­lish joint ven­tures in emer­ging block­chain mar­kets.

GBC AG: Thank you for the in­ter­view.

You can down­load the re­se­arch here:

Cont­act for ques­ti­ons
Hal­der­stra­ße 27
86150 Augs­burg
0821241133 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/​d​e​/​O​f​f​e​n​l​e​g​ung
Com­ple­ti­on Date (Time): 13.03.2024. 16:00
First Dis­tri­bu­ti­on Date (Time): 14.03.2024. 09:00

——————-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.



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E‑mail: office(@)gbc-ag.de

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