Arcane Crypto is an investment company acquiring and developing early-stage businesses in the blockchain-powered digital assets sector as part of a ‘buy-and-build’ strategy. It currently has five fully owned and four minority-owned businesses across payments, trading, asset management, research and media. It has been listed on the Nasdaq First North alternative market since February 2021.
In Q421 Arcane Crypto reduced its EBITDA loss to SEK3.4m from SEK10.4m in Q420, on the back of higher trading volumes and the gross margin of its crypto broker Kaupang Krypto, as well as the launch of bitcoin (BTC) mining in October 2021. The latter is now fully ramped up after deployment of the second batch of miners in Q122. These operations generated a robust average gross margin of 65% in Q421. However, the subsequent BTC price decline from its all-time high in November 2021, coupled with high electricity prices in Norway, means Arcane Crypto now expects to be close to cash flow neutral in the near term (compared to previous expectations of being cash flow positive from Q122 onwards).