Original-Research: Advanced Blockchain AG (von GBC AG): Buy
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Original-Research: Advanced Blockchain AG - from GBC AG
22.04.2025 / 16:00 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of EQS
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The issuer is solely responsible for the content of this research. The
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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: 5.58 EUR
Target price on sight of: 31.12.2025
Last rating change:
Analyst: Matthias Greiffenberger, Cosmin Filker
Advanced Blockchain AG in strategic relaunch
With the appointment of a new Management Board in August 2024, Advanced
Blockchain AG has initiated a consistent and strategic reset. This new
beginning is marked not only by a thorough assessment of past shortcomings
but also by a focused realignment of the company's long-term direction.
Management's current approach sends a clear message: it is laying the
groundwork for sustainable and transparent growth.
The new leadership team is placing strong emphasis on transparency,
governance, and effective risk management, areas that were previously
underprioritized and had led to a loss of investor confidence. To restore
trust, over 16,000 on-chain transactions have been verified, more than 5,000
documents thoroughly analyzed, and more than 100 wallets subjected to
forensic examination. A legal review has been launched and is already
nearing completion.
Financially, Advanced Blockchain AG remains on solid ground. Liquidity
currently exceeds one million euros, with a target reserve of approximately
three million euros by the end of the year. Moreover, the value of the
investment portfolio continues to outweigh liabilities. While recent
declines in some holdings, notably PEAQ, have affected valuations, the
portfolio still stands at an estimated 20 million euros. The management team
is deliberately prudent. Tokens are only sold under fair market conditions
in order to preserve long-term value. A strategy focused on liquidity
preservation is in place, with monetization occurring only when market
timing is favorable. Looking ahead, the portfolio will be made more
diversified and resilient, without prematurely exiting promising
investments.
The strategic refocus aims to stabilize and broaden revenue streams. The
primary goal is to build recurring income through staking, decentralized
finance activities, and software-based solutions. A notable initiative is
the planned further development of ABX Analytics, a data-driven software
platform expected to generate licensing income and additional consulting
fees through its insights. However, management emphasizes that software
remains a supplementary income stream. At its core, Advanced Blockchain
continues to operate as a venture capital investor with a strong focus on
long-term investment strategies and incubations.
The company is also evaluating algorithmic trading in collaboration with
external partners. An initial pilot project is scheduled for 2025, with the
goal of developing a scalable model starting in 2026. Additionally, the
development of a financial product based on Bitcoin, supported by
proprietary analytics for Bitcoin and alternative cryptocurrencies, is under
active review.
While certain challenges persist, including the notable value decline of
specific investments such as Composable and the limited liquidity of the
company's shares, the overall outlook suggests a significant reevaluation.
The management team is taking clear and credible steps. Investments have
been thoroughly reviewed, inefficient structures dismantled, internal
processes reorganized, and the first new growth initiatives have been
successfully launched.
Another core objective is the development of professional, investor-friendly
reporting standards. In the medium term, management intends to provide a
complete and transparent overview of all assets, including valuations,
valuation methodologies, and third-party audit reports.
In our view, Advanced Blockchain AG represents an attractive opportunity for
investors. The current share price of approximately 3.13 euros does not
reflect the company's underlying financial strength or its medium to
long-term growth prospects. If the announced initiatives are implemented
consistently, particularly in software, staking, and portfolio optimization,
we see strong potential for a meaningful increase in valuation.
Despite recent market fluctuations, the management remains confident that
the temporary value decline in some portfolio positions can be recovered
over time.
We have also conducted a supplementary valuation based on the latest
portfolio updates provided by management. Assuming a portfolio value of
approximately 22 million euros and deducting an estimated 1.35 million euros
in holding costs, this results in an adjusted net asset value of roughly
20.65 million euros. Based on approximately 3.7 million shares outstanding,
this corresponds to an intrinsic value of around 5.58 euros per share. Even
using conservative assumptions, this figure significantly exceeds the
current market price and underscores the strong revaluation potential.
You can download the research here: http://www.more-ir.de/d/32312.pdf
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/de/Offenlegung.htm
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Completion: 22.04.2025 (10:00)
First distribution: 22.04.2025 (16:00)
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2121606 22.04.2025 CET/CEST
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