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

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Original-Research: Advanced Blockchain AG - from GBC AG

17.12.2024 / 12:01 CET/CEST

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

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Classification of GBC AG to Advanced Blockchain AG

Company Name: Advanced Blockchain AG

ISIN: DE000A0M93V6

Reason for the research: Management interview

Recommendation: Buy

Target price: 10.75 EUR

Target price on sight of: 31.12.2025

Last rating change:

Analyst: Matthias Greiffenberger, Marcel Goldmann

'peaq is an outstanding example of the success of our incubation strategy.

[.] Our share has since fluctuated around USD 60 million depending on the

daily price.'

GBC AG: What key topics and projects did you present at the

Eigenkapitalforum?

Hatem Elsayed: At the Eigenkapitalforum, we presented our strategic

direction and measures to improve liquidity. Our future investment focus

will be on targeted early-stage investments in high-growth sectors such as

DePINs, Bitcoin Layer-2 solutions, and Real World Assets and more.

GBC AG: What feedback did you receive from the investors present at the

Equity Forum?

Maik Laske: The feedback from investors was overwhelmingly positive,

particularly regarding the combination of strategic investments and

efficient liquidity management, as well as the new core team. Investors

praised our commitment to DePINs and interoperability, highlighting their

growing importance. The market potential for DePINs alone is estimated to

reach USD 3.5 trillion by 2028.

Hatem Elsayed: Our strong deaflow pipeline and successful track record of

exits were particularly well-received, further strengthening confidence in

our business model.

GBC AG: Were there any topics that were critically received?

Maik Laske: Critical questions primarily revolved around market volatility

and our risk management strategy. Here, we outlined our target of increasing

liquid reserves to at least 25%. Additionally, a lack of transparency was

noted as another critical point, which we are addressing as a key priority

in our future work.

Hatem Elsayed: Questions also arose regarding the streamlining of our

corporate structure and the associated challenges. However, we were able to

present convincing perspectives and solutions.

GBC AG: Regarding your new strategy: What are your focal points for future

investments in blockchain technologies?

Hatem Elsayed: Our investment strategy focuses on high-growth sectors such

as DePINs, Bitcoin Layer-2 solutions, and Real-World Assets among others. We

see enormous potential in these areas as they not only drive technological

innovation but also create real-world use cases that offer long-term value.

GBC AG: What are your goals in this regard, and how do you assess the

potential of these areas for future growth?

Hatem Elsayed: Our goal is to expand our portfolio with projects that are

economically profitable and technologically groundbreaking. We plan to

invest in early stage funding rounds of projects that we can actively scale

and support to achieve above-average returns. For the coming year, we have

allocated an investment budget of up to EUR 2 million and anticipate

monetization revenues of EUR 4 million to finance these investments.

GBC AG: Given the volatility of the crypto market, you aim to increase

liquid reserves to at least 25%. What measures are you taking to achieve

this target while also seizing attractive investment opportunities?

Maik Laske: Our strategy involves several measures to achieve the targeted

liquidity ratio while investing in promising projects. This includes

strategic exits from selected investments to enhance liquidity. We also plan

to liquidate some of our existing assets in exchange for established

blue-chip tokens. Additionally, we are going to deploy liquid tokens in

staking activities and liquidity pools to generate additional income. These

steps strengthen our financial base and provide stability even during

volatile market phases.

GBC AG: You plan to streamline the corporate structure to promote efficiency

and cost reductions. What challenges do you foresee in implementing this

measure, and how will you ensure that core innovation and corporate culture

are preserved?

Maik Laske: The biggest challenge is creating a leaner structure without

compromising value potential. By focusing on core business units, we

eliminate inefficient processes and achieve lasting cost reductions. This

not only creates clear structures but also increases transparency for our

shareholders and strengthens confidence in our operational direction. We

redirect freed-up resources to high-growth areas, ensuring more efficient

capital allocation and long-term increases in asset value for shareholders.

GBC AG: Just before the Eigenkapitalforum, you announced three new

investments. Could you briefly introduce these recent investments by

Advanced Blockchain?

Hatem Elsayed: Yes, we recently invested in three highly promising projects:

1. AO Token Farming: AO is a decentralized supercomputer built on the

Arweave network. AO combines permanent data storage with decentralized

computing resources, enabling developers to create innovative applications.

Think of AO as a global, distributed data center that operates securely and

efficiently without a central operator. Stored data remains permanently

available, eliminating the need for expensive servers or limited storage

solutions.

2. Teneo Protocol: An innovative provider of decentralized data

infrastructure that helps businesses efficiently and cost-effectively

utilize social media data. Teneo allows companies to access necessary data

directly from social media platforms without relying on expensive,

centralized data services. The data is provided by community users who are

incentivized with project tokens for their contributions. This model fosters

a sustainable and active ecosystem benefiting both businesses and data

providers.

3. Silencio: A DePIN project operating a global network of sensors for

environmental monitoring with innovative monetization methods. Silencio uses

sensors to collect data on environmental conditions such as air quality or

noise pollution. For instance, a network of sensors in cities could gather

data on air pollution or noise levels, which is then sold to companies or

government agencies for environmental reports or initiatives to improve

quality of life. Recently, the Abu Dhabi Environmental Agency launched a

noise pollution mapping initiative, highlighting the relevance of Silencio's

datasets. Such initiatives underscore the growing demand for accurate and

accessible environmental data provided by Silencio.

GBC AG: Which companies or projects are you focusing on?

Maik Laske: All three projects represent core areas of our strategic focus

and offer significant growth potential.

GBC AG: Many cryptocurrencies and tokens are currently experiencing positive

developments. How do you assess the future of the crypto market, and what

role do you think Advanced Blockchain will play in this dynamic environment

in the coming years?

Hatem Elsayed: We view the current market dynamics as clear confirmation of

the relevance and future viability of blockchain technologies. In

particular, the DePIN sector and Bitcoin Layer-2 solutions will be key

growth drivers in the coming years. Advanced Blockchain will continue to

play a leading role in this ecosystem by investing early in key tech

verticals, actively supporting them, and creating long-term value together

with our partners. Our diversified portfolio and strategic approach position

us optimally to benefit sustainably from this development.

GBC AG: How do you evaluate the development of peaq after its token launch,

and what significance does the project hold for Advanced Blockchain?

Maik Laske: peaq is an outstanding example of the success of our incubation

strategy. Since the token launch, the price has developed strongly and has

already reached an all time high of USD 0.75. Our token share has since

fluctuated around USD 60 million depending on the daily price. As one of our

first incubation projects, peaq is among the leading platforms in the field

of Decentralized Physical Infrastructure Networks (DePIN). The strong price

development of peaq compared to other token launches highlights both the

project's potential and the effectiveness of our business model. For both

peaq and other investments, the group plans to generate stable returns in

the future through long-term participation and staking revenues.

GBC AG: Thank you for the interview.

You can download the research here: http://www.more-ir.de/d/31551.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: http://www.gbc-ag.de/de/Offenlegung

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Date (time) of completion: 17.12.2024, 11:00

Date (time) of the first transmission: 17.12.2024, 12:00

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