ACE Digital Beats the Cycle with Active Treasury Strategy

ACE Digital's treasury strategy has outperformed its passive benchmark in the first half of the year, beating the cycle and showing resilience during a volatile period for Bitcoin. According to ACE Digital's half-year report, the company reported operating revenue of NOK 37.5 million, up from NOK 3.3 million a year earlier, but this was largely due to sales of Bitcoin and bitcoin options rather than underlying growth.

The company reported an operating loss of NOK 14.8 million and a net loss of NOK 16.2 million in the first half. However, within its treasury strategy, ACE Digital performed better than its passive benchmark, with a loss of NOK 10.75 million compared to NOK 19.59 million for a passive holding of 65 Bitcoin.

As the price of Bitcoin rose, ACE Digital's direct holdings increased from 1.55 Bitcoin at the end of the first half to 7.1 Bitcoin, without any additional purchases in the spot market. This increase reflects the settlement of derivative positions. The company's effective exposure within its treasury strategy is now around 39 Bitcoin.