K33 AB (publ) (ARCNF) Q3 2025 Earnings Call Prepared Remarks Transcript

2025-11-20 03:03:28 ET

K33 AB (publ) (ARCNF) Q3 2025 Earnings Call November 20, 2025 2:00 AM EST

Company Participants

Torbjorn Jenssen - Founder, CEO & MD

Presentation

Torbjorn Jenssen
Founder, CEO & MD ...

Good morning, and welcome to this Q3 presentation for K33. My name is Torbjorn Bull Jenssen and I'm the CEO of K33. At K33, we help private individuals, family offices, corporate clients and financial institutions buy, sell and store cryptocurrency without worry. And speaking of worry, right now, there are a lot of investors who are worried.

Bitcoin has fallen sharply recently and their market sentiment is deteriorating. If you look at the year overall, Bitcoin has actually been flat. So many ask themselves, was this it? Was Bitcoin kind of a momentum trade, and now the momentum is gone?

At K33, we view it very differently because while Bitcoin has been falling recently, we continue to see important news from big financial institutions, from sovereign wealth funds, we see an adoption of Bitcoin as an financial instrument continuing at full pace.

And it's this underlying adoption which will be the driver for the development of Bitcoin prices and the whole sector in the years to come, and it has never looked better. And this is exactly why at K33 we continue to buy and hold Bitcoin. We now hold 141 Bitcoin on our balance sheet, and we are slowly working our way towards our goal of 1,000 Bitcoin.

There are two reasons why we are buying and holding Bitcoin. One is that we are strong believers that Bitcoin will be the key part -- a key part of the global financial infrastructure in the future, and we think that Bitcoin will have the best return going forward.

But as importantly, as a broker, Bitcoin is for us a key enabler. We can put our balance sheet to work using Bitcoin as collateral in our matched principal trading and kind of accelerate our product development and strengthen our operations by having a strong balance sheet.

And when you look at K33, the operation is the main value. And it's really exciting to share that in Q3, we reached a new milestone. For the first time, we saw a quarterly market volume of more than SEK 1 billion. Looking at the 12-month rolling, we are actually now at SEK 2.3 billion, up from SEK 700 million last year. So the market is really liking what we're offering, and we see strong growth.

Still, the potential is way larger. We're a tiny player and the sky is the limit for how far we can take this in the coming quarters. For Q4 specifically, we anticipate a setback as the tailwinds from treasury companies using our services during the summer has faded. But over the longer term, we really expect to be able to continue and keep the pace of high growth going forward.

And with this high growth, we've now approached profitability from the operational side. We grew 270% year-over-year looking at revenue with 130% growth relative to Q2. And this resulted in an EBITDA of around SEK 2 million and a positive result adjusting for unrealized losses related to our Bitcoin holding.

Moving ahead, we are now working with our MiCA application. We have filed it with the Norwegian FSA, and we earlier shared that we expected this to be approved before year-end. However, the Norwegian FSA has asked for a 6-month extension of their processing period. And although we anticipate that we will get our approval before the end of that extended period, right now, it looks like it will take slightly longer than first anticipated.

But we are very much on track. The process with NFSA is going smoothly. And if everything goes as planned, we should get our license early next year. And the key reason why this is so important to K33 is that we are positioning ourselves as a company that can truly help traditional financial institutions when they are now about to move into this space.

We are strong believers that every financial institution will have a Bitcoin or crypto asset service in the coming years, and we are certain that most of them will need a partner, and K33 shall be that preferred partner. And this is why I'm extremely excited to share that now in Q4 -- sorry, during Q3, we've actually launched a partnership with our first traditional asset manager.

Together with Pensum Asset Management, we are now developing investment products for their clients to get a managed exposure to Bitcoin and digital assets, a product we expect to launch following our MiCA application approval sometime in 2026. And this is extremely exciting because this will enable us to tap into faster growth and growing kind of through partnerships, accelerating our distribution rather than winning every single end client ourselves.

So to summarize, looking ahead, we are very much on track. We have a strong balance sheet of 141 Bitcoin and we'll continue to stack prudently towards our goal of 1,000 Bitcoin. We will continue with our iterative product development and roll out new features that will enhance the user experience, enhance the capabilities for our clients.

We will increasingly expand and grow through partnerships with Pensum Asset Management as the first key example of such a partnership. And I expect that we will continue to win volume from both private and corporate clients as we've done in the past in the coming quarters as well.

Thank you so much, and have a great day.

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