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Original-Research: Advanced Blockchain AG - from GBC AG
17.12.2024 / 12:01 CET/CEST
Dissemination of a Research, transmitted by EQS News - a service of 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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Classification of GBC AG to Advanced Blockchain AG
Company Name: Advanced Blockchain AG
ISIN: DE000A0M93V6
Reason for the research: Management interview
Recommendation: Buy
Target price: 10.75 EUR
Target price on sight of: 31.12.2025
Last rating change:
Analyst: Matthias Greiffenberger, Marcel Goldmann
'peaq is an outstanding example of the success of our incubation strategy.
[.] Our share has since fluctuated around USD 60 million depending on the
daily price.'
GBC AG: What key topics and projects did you present at the
Eigenkapitalforum?
Hatem Elsayed: At the Eigenkapitalforum, we presented our strategic
direction and measures to improve liquidity. Our future investment focus
will be on targeted early-stage investments in high-growth sectors such as
DePINs, Bitcoin Layer-2 solutions, and Real World Assets and more.
GBC AG: What feedback did you receive from the investors present at the
Equity Forum?
Maik Laske: The feedback from investors was overwhelmingly positive,
particularly regarding the combination of strategic investments and
efficient liquidity management, as well as the new core team. Investors
praised our commitment to DePINs and interoperability, highlighting their
growing importance. The market potential for DePINs alone is estimated to
reach USD 3.5 trillion by 2028.
Hatem Elsayed: Our strong deaflow pipeline and successful track record of
exits were particularly well-received, further strengthening confidence in
our business model.
GBC AG: Were there any topics that were critically received?
Maik Laske: Critical questions primarily revolved around market volatility
and our risk management strategy. Here, we outlined our target of increasing
liquid reserves to at least 25%. Additionally, a lack of transparency was
noted as another critical point, which we are addressing as a key priority
in our future work.
Hatem Elsayed: Questions also arose regarding the streamlining of our
corporate structure and the associated challenges. However, we were able to
present convincing perspectives and solutions.
GBC AG: Regarding your new strategy: What are your focal points for future
investments in blockchain technologies?
Hatem Elsayed: Our investment strategy focuses on high-growth sectors such
as DePINs, Bitcoin Layer-2 solutions, and Real-World Assets among others. We
see enormous potential in these areas as they not only drive technological
innovation but also create real-world use cases that offer long-term value.
GBC AG: What are your goals in this regard, and how do you assess the
potential of these areas for future growth?
Hatem Elsayed: Our goal is to expand our portfolio with projects that are
economically profitable and technologically groundbreaking. We plan to
invest in early stage funding rounds of projects that we can actively scale
and support to achieve above-average returns. For the coming year, we have
allocated an investment budget of up to EUR 2 million and anticipate
monetization revenues of EUR 4 million to finance these investments.
GBC AG: Given the volatility of the crypto market, you aim to increase
liquid reserves to at least 25%. What measures are you taking to achieve
this target while also seizing attractive investment opportunities?
Maik Laske: Our strategy involves several measures to achieve the targeted
liquidity ratio while investing in promising projects. This includes
strategic exits from selected investments to enhance liquidity. We also plan
to liquidate some of our existing assets in exchange for established
blue-chip tokens. Additionally, we are going to deploy liquid tokens in
staking activities and liquidity pools to generate additional income. These
steps strengthen our financial base and provide stability even during
volatile market phases.
GBC AG: You plan to streamline the corporate structure to promote efficiency
and cost reductions. What challenges do you foresee in implementing this
measure, and how will you ensure that core innovation and corporate culture
are preserved?
Maik Laske: The biggest challenge is creating a leaner structure without
compromising value potential. By focusing on core business units, we
eliminate inefficient processes and achieve lasting cost reductions. This
not only creates clear structures but also increases transparency for our
shareholders and strengthens confidence in our operational direction. We
redirect freed-up resources to high-growth areas, ensuring more efficient
capital allocation and long-term increases in asset value for shareholders.
GBC AG: Just before the Eigenkapitalforum, you announced three new
investments. Could you briefly introduce these recent investments by
Advanced Blockchain?
Hatem Elsayed: Yes, we recently invested in three highly promising projects:
1. AO Token Farming: AO is a decentralized supercomputer built on the
Arweave network. AO combines permanent data storage with decentralized
computing resources, enabling developers to create innovative applications.
Think of AO as a global, distributed data center that operates securely and
efficiently without a central operator. Stored data remains permanently
available, eliminating the need for expensive servers or limited storage
solutions.
2. Teneo Protocol: An innovative provider of decentralized data
infrastructure that helps businesses efficiently and cost-effectively
utilize social media data. Teneo allows companies to access necessary data
directly from social media platforms without relying on expensive,
centralized data services. The data is provided by community users who are
incentivized with project tokens for their contributions. This model fosters
a sustainable and active ecosystem benefiting both businesses and data
providers.
3. Silencio: A DePIN project operating a global network of sensors for
environmental monitoring with innovative monetization methods. Silencio uses
sensors to collect data on environmental conditions such as air quality or
noise pollution. For instance, a network of sensors in cities could gather
data on air pollution or noise levels, which is then sold to companies or
government agencies for environmental reports or initiatives to improve
quality of life. Recently, the Abu Dhabi Environmental Agency launched a
noise pollution mapping initiative, highlighting the relevance of Silencio's
datasets. Such initiatives underscore the growing demand for accurate and
accessible environmental data provided by Silencio.
GBC AG: Which companies or projects are you focusing on?
Maik Laske: All three projects represent core areas of our strategic focus
and offer significant growth potential.
GBC AG: Many cryptocurrencies and tokens are currently experiencing positive
developments. How do you assess the future of the crypto market, and what
role do you think Advanced Blockchain will play in this dynamic environment
in the coming years?
Hatem Elsayed: We view the current market dynamics as clear confirmation of
the relevance and future viability of blockchain technologies. In
particular, the DePIN sector and Bitcoin Layer-2 solutions will be key
growth drivers in the coming years. Advanced Blockchain will continue to
play a leading role in this ecosystem by investing early in key tech
verticals, actively supporting them, and creating long-term value together
with our partners. Our diversified portfolio and strategic approach position
us optimally to benefit sustainably from this development.
GBC AG: How do you evaluate the development of peaq after its token launch,
and what significance does the project hold for Advanced Blockchain?
Maik Laske: peaq is an outstanding example of the success of our incubation
strategy. Since the token launch, the price has developed strongly and has
already reached an all time high of USD 0.75. Our token share has since
fluctuated around USD 60 million depending on the daily price. As one of our
first incubation projects, peaq is among the leading platforms in the field
of Decentralized Physical Infrastructure Networks (DePIN). The strong price
development of peaq compared to other token launches highlights both the
project's potential and the effectiveness of our business model. For both
peaq and other investments, the group plans to generate stable returns in
the future through long-term participation and staking revenues.
GBC AG: Thank you for the interview.
You can download the research here: http://www.more-ir.de/d/31551.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: http://www.gbc-ag.de/de/Offenlegung
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Date (time) of completion: 17.12.2024, 11:00
Date (time) of the first transmission: 17.12.2024, 12:00
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