K33 Ab · OMXSTO:K33
K33 Ab — Arcane Crypto — Q1 2021 Earnings Presentation
29 slides from K33 Ab's earnings presentation, May 7, 2021
Slide 1: Arcane Crypto Q1 results
Arcane Crypto Company presentation in relation to Q1 results May 7th 2021
Slide 2: Disclaimer
Disclaimer This presentation is not for public release or for release, publication or distribution (in whole or in part) in or into the United This Presentation contains certain forward-looking statements relating to inter alia the business, financial performance and results States, Canada, Hong Kon
Slide 3: Today's presenters
Today’s presenters Torbjørn Bull Jenssen Eva Lawrence CEO COO • Norway's best-known bitcoin and blockchain expert • 8 years at Morgan Stanley, where she was Head of EMEA • Senior economist at Menon Economics (4 yrs) Flow Trading for Securities Lending after working in FX • MSc Economics and Economet
Slide 4: Vision and Mission
Vision Become the leading full service digital finance platform in Europe Mission Leverage digital currencies to revolutionize payments 4
Slide 5: Arcane Crypto – Significant events in Q1
Arcane Crypto – Significant events in Q1 • 11th of January: The EGM in then Vertical Ventures AB (publ) approved the reverse takeover of Arcane Crypto AS • 5th of February: The company started trading under new name and ticker: Arcane Crypto AB and “ARCANE” • 9th of February: The company increased i
Slide 6: Table of contents
Table of contents Chapter 1 Introduction to Arcane Chapter 2 Our sector Chapter 3 Breakdown of Arcane’s portfolio and key figures Q1 2021 Chapter 4 Summary 6
Slide 7: Introduction to Arcane
Introduction to Arcane Arcane Crypto
Slide 8: Arcane Crypto – Summary
Arcane Crypto – Summary • Institutional demand is growing fast. As an example, both volume and open interest for bitcoin contracts on CME increased more than 10x in 2020 High growth market • In addition, there seems to be an emerging trend where companies add BTC exposure to their balance sheet • Ar
Slide 9: Creating a crypto powerhouse
Creating a crypto powerhouse In three years, Arcane has grown to a Nasdaq listed group of 8 companies through extensive M&A and organic development Global digital finance platform M&A important part of buy and build strategy going-forward 2018 2019 2020 2021 2022 9
Slide 10: Our sector
Our sector shapla Arcane Crypto © teslacoil [ees
Slide 11: A maturing market
A maturing and market 1. Large institutions 2. Already a billion- coming in dollar market 3. The technology is 4. Cryptocurrencies are improving fast becoming regulated 11 06/05/2021
Slide 12: The sector is growing fast
The sector is growing fast Appreciation and growing volumes in Q1 • BTC +102%, ETH +160% Real BTC Daily Volume (7-day average) • Trading volume for BTC: USD 845bn, +220% 14 000 The big banks are coming 12 000 • BNY Mellon will roll out digital asset custody in 2021 • Goldman Sachs relaunched its cry
Slide 13: Disrupting payments, a trillion dollar opportunity
Disrupting payments, a trillion dollar opportunity Bitcoin is ideal as a cross- border payment rail: A global layer of interoperability: 13
Slide 14: Huge market opportunity in global payments
Huge market opportunity in global payments Global Payments Revenue Global and digital services need 2.7 global payment rails 2.5 2 1.9 1.8 USD trillion 1.6 Global aviation Global remittances 1.5 1.3 1.4 USD +800bn USD +500bn 1 1 0.5 Global gaming Global media 0 2009 2011 2013 2015 2017 2018 2023F US
Slide 15: Combining the best of both worlds
Combining the best of both worlds Improving payments by bridging the gap between crypto and fiat Cryptocurrency transactions : Traditional payments transactions: ✓ Fast ☓ Slow ✓ Cheap ☓ Costly ✓ Final ☓ With chargeback risk ☓ Unregulated Fast and cheap Trusted and ✓ Regulated ☓ Volatile regulated ✓
Slide 16: Breakdown of Arcane's portfolio
Breakdown of Arcane’s portfolio
Slide 17: Arcane digital finance platform
Arcane digital Asset Management A cryptocurrency hedge fund for professional finance platform investors B2C B2B Payments Trading Platforms Regulated crypto exchange in Sweden, a Offering our Teslacoil payment as a * Norwegian regulated broker and derivatives software-as-a-service worldwide trading p
Slide 18: Volume driven and scalable business models
Volume driven and scalable business models The main source of revenue: • Percentage fees on payment volume • Spread and/or fees on trading volume Percentage fee on payment Management fee (% of AUM) Brokerage fee as percent of Spread on trading volume volume and success fee trading volume Monthly sub
Slide 19: Operational updates
Operational updates Arcane Crypto
Slide 20: Key figures for Arcane Crypto
Key figures for Arcane Crypto Arcane Crypto AS Revenue (kSEK ) Financial overview (excluding result from associated companies) kSEK Q1 2021 Q1 2020 2020 2 000 Revenue 2,157 118 2,103 Operating expenses 13,200 3,015 19,915 EBITDA –11,043 –2,897 –17,812 1 500 Total assets 84,957 16,946 41,243 Total li
Slide 21: Arcane Assets and Arcane Research
Arcane Assets (100%) Arcane Research (100%) Assets under management (KSEK) • Arcane Research has more than doubled its • In Q1, the fund managed by Arcane revenue from Q4 2020 to Q1 2021 and has has reached Assets Under secured several new clients 160 000 Management (AUM) of just below kSEK 170m. 14
Slide 22: Arcane Technology – Teslacoil (100%)
Arcane Technology – Teslacoil (100%) • First instance with external clients is now running smoothly. • It is an instance that is licenced to, and run by Kaupang • Integrated with Shopify and WooCommerce • Exploding market activity has resulted in high on-chain fees validating the business case for L
Slide 23: Kaupang (100%) and Trijo (34%)
Kaupang (100%) and Trijo (34%) Background Gross trading volume kSEK • On 26th of March 2021, Arcane closed the Acquisition of Kaupang Krypto 40 000 40 000 • On 20th of April 2021, Arcane entered into an agreement to acquire the remaining outstanding shares in Trijo 35 000 35 000 30 000 30 000 Operat
Slide 24: Puremarkets (37.5%)
Puremarkets (37.5%) • Product Agreement with State Street’s Currenex to provide trading infrastructure to the Pure Digital platform. • Increased interest from both tier one investment banks with interest in trading on the platform and from various settlement, risk, custody and other digital asset se
Slide 25: LN Markets (16%)
LN Markets (16%) • On 16th April 2021, Arcane entered into an Gross trading volume kSEK on LN Markets agreement to increase its ownership in LN Markets from around 7% to around 16%. 800 000 • LN Markets is a trading platform built on the Bitcoin Lightning Network and uses Bitcoin, paid 700 000 and s
Slide 26: 2025 potential
2025 potential 2025 potential Comment “Unlimited” target market comprised of global payments, Processed volume (yearly) SEK 55bn retail and institutional trading and execution platforms Asset under SEK 10bn “Unlimited” target market” – global crypto asset management management Blended revenue Averag
Slide 27: Summary
Summary ©teslacoil RR jes. kaupang trijo (uc shapla Arcane : Crypto
Slide 28: Arcane digital finance platform
Arcane digital Asset Management A cryptocurrency hedge fund for professional finance platform investors B2C B2B Payments Trading Platforms Regulated crypto exchange in Sweden, a Offering our Teslacoil payment as a * Norwegian regulated broker and derivatives software-as-a-service worldwide trading p
Slide 29: Arcane Crypto – Summary
Arcane Crypto – Summary • Institutional demand is growing fast. As an example, both volume and open interest for bitcoin contracts on CME increased more than 10x in 2020 High growth market • In addition, there seems to be an emerging trend where companies add BTC exposure to their balance sheet • Ar