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

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Original-Research: Advanced Blockchain AG - from GBC AG

22.04.2025 / 16:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

Group.

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: Research Comment

Recommendation: Buy

Target price: 5.58 EUR

Target price on sight of: 31.12.2025

Last rating change:

Analyst: Matthias Greiffenberger, Cosmin Filker

Advanced Blockchain AG in strategic relaunch

With the appointment of a new Management Board in August 2024, Advanced

Blockchain AG has initiated a consistent and strategic reset. This new

beginning is marked not only by a thorough assessment of past shortcomings

but also by a focused realignment of the company's long-term direction.

Management's current approach sends a clear message: it is laying the

groundwork for sustainable and transparent growth.

The new leadership team is placing strong emphasis on transparency,

governance, and effective risk management, areas that were previously

underprioritized and had led to a loss of investor confidence. To restore

trust, over 16,000 on-chain transactions have been verified, more than 5,000

documents thoroughly analyzed, and more than 100 wallets subjected to

forensic examination. A legal review has been launched and is already

nearing completion.

Financially, Advanced Blockchain AG remains on solid ground. Liquidity

currently exceeds one million euros, with a target reserve of approximately

three million euros by the end of the year. Moreover, the value of the

investment portfolio continues to outweigh liabilities. While recent

declines in some holdings, notably PEAQ, have affected valuations, the

portfolio still stands at an estimated 20 million euros. The management team

is deliberately prudent. Tokens are only sold under fair market conditions

in order to preserve long-term value. A strategy focused on liquidity

preservation is in place, with monetization occurring only when market

timing is favorable. Looking ahead, the portfolio will be made more

diversified and resilient, without prematurely exiting promising

investments.

The strategic refocus aims to stabilize and broaden revenue streams. The

primary goal is to build recurring income through staking, decentralized

finance activities, and software-based solutions. A notable initiative is

the planned further development of ABX Analytics, a data-driven software

platform expected to generate licensing income and additional consulting

fees through its insights. However, management emphasizes that software

remains a supplementary income stream. At its core, Advanced Blockchain

continues to operate as a venture capital investor with a strong focus on

long-term investment strategies and incubations.

The company is also evaluating algorithmic trading in collaboration with

external partners. An initial pilot project is scheduled for 2025, with the

goal of developing a scalable model starting in 2026. Additionally, the

development of a financial product based on Bitcoin, supported by

proprietary analytics for Bitcoin and alternative cryptocurrencies, is under

active review.

While certain challenges persist, including the notable value decline of

specific investments such as Composable and the limited liquidity of the

company's shares, the overall outlook suggests a significant reevaluation.

The management team is taking clear and credible steps. Investments have

been thoroughly reviewed, inefficient structures dismantled, internal

processes reorganized, and the first new growth initiatives have been

successfully launched.

Another core objective is the development of professional, investor-friendly

reporting standards. In the medium term, management intends to provide a

complete and transparent overview of all assets, including valuations,

valuation methodologies, and third-party audit reports.

In our view, Advanced Blockchain AG represents an attractive opportunity for

investors. The current share price of approximately 3.13 euros does not

reflect the company's underlying financial strength or its medium to

long-term growth prospects. If the announced initiatives are implemented

consistently, particularly in software, staking, and portfolio optimization,

we see strong potential for a meaningful increase in valuation.

Despite recent market fluctuations, the management remains confident that

the temporary value decline in some portfolio positions can be recovered

over time.

We have also conducted a supplementary valuation based on the latest

portfolio updates provided by management. Assuming a portfolio value of

approximately 22 million euros and deducting an estimated 1.35 million euros

in holding costs, this results in an adjusted net asset value of roughly

20.65 million euros. Based on approximately 3.7 million shares outstanding,

this corresponds to an intrinsic value of around 5.58 euros per share. Even

using conservative assumptions, this figure significantly exceeds the

current market price and underscores the strong revaluation potential.

You can download the research here: http://www.more-ir.de/d/32312.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:

https://www.gbc-ag.de/de/Offenlegung.htm

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Completion: 22.04.2025 (10:00)

First distribution: 22.04.2025 (16:00)

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2121606 22.04.2025 CET/CEST

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