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

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Original-Research: Advanced Blockchain AG - from GBC AG

20.11.2024 / 14:45 CET/CEST
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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: Kaufen
Target price: 10.75 EUR
Target price on sight of: 31.12.2025
Last rating change:
Analyst: Matthias Greiffenberger, Marcel Goldmann

Valuation update: Successful peaq Token Launch Leads to Reassessment of
Portfolio Position

In our most recent valuation of Advanced Blockchain AG on November 11, 2025,
we intentionally refrained from preempting the outcome of the peaq token
launch, opting instead to wait and observe its development. Historically,
token launches tend to be highly volatile, which was why our previous
assessment was published prior to the launch. Many tokens typically
experience price declines of up to 80% shortly after launch, as early
investors liquidate their positions. Accordingly, we sought to base our
conclusions on the actual market response.

The peaq token was ultimately listed at a price of $0.50 but subsequently
settled at approximately $0.25. Nevertheless, the token has demonstrated
relative stability compared to similar projects, significantly outperforming
the expected benchmark trends. This stabilization now allows for a
well-founded reassessment.

As of the last Top-15 portfolio evaluation on June 30, 2024, Advanced
Blockchain AG held 88,056,000 peaq tokens. ABAG acquired these tokens at
minimal costs through its incubation activities. Following the launch, at a
price of $0.25 per token, their value is now approximately $22.01 million
USD or EUR20.80 million (exchange rate: 1 USD = 0.944849 EUR, as of November
19, 2024, 14:50 UTC). In our view, this represents a significant value
increase of around $15.03 million USD (EUR14.22 million).

Although the peaq tokens are subject to a lockup agreement until Q3 2025,
they can be utilized for staking during this period. Token staking involves
cryptocurrency holders locking their tokens in a wallet to support the
network, such as by validating transactions or providing liquidity. In
return, they receive rewards in the form of additional tokens. Advanced
Blockchain AG plans to actively stake its peaq tokens to generate additional
tokens. This approach could enhance token yields during the lockup phase and
further improve the company's return on capital.

With 3.79 million outstanding shares, the value increase of EUR14.22 million
results in a NAV rise of approximately EUR3.75 per share. Consequently, based
on our previous price target of EUR7.00, the new price target is EUR10.75 per
share.

Overall, we continue to view the company as excellently positioned, with a
solid liquidity base. As of June 30, 2024, the parent company held liquid
assets of approximately EUR1.62 million. According to management, liquid
assets at the group level amounted to around EUR2 million as of the same date.
Additionally, the investment subsidiary holds a range of tokens that can be
liquidated mid-term, ensuring additional financial flexibility.

Given the significant upside potential, we maintain our Buy rating.

You can download the research here: http://www.more-ir.de/d/31393.pdf

Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
++++++++++++++++
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
+++++++++++++++
Date (time) of completion: 20.11.2024 (14:00)
Date (time) of first publication: 20.11.2024 (14:45)

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2034935 20.11.2024 CET/CEST

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