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Research Report (Anno) english - Advanced Blockchain AG - 19.09.2025

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.