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

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)