Antalpha Platform Holding Company Q1 FY2026 earnings call

• Loan Book and Risk Management

  • Maintained a zero principal loss track record since inception, achieved through a risk-first operating philosophy and overcollateralized lending model.
  • Large Bitcoin miner borrower Cango repaid ~$526 million of outstanding loan balance (over 95% of its December 31, 2025 balance) in Q1 2026, with a small remaining portion repaid in early Q2 2026, with zero principal loss.
  • Total value of the loan book was $1.6 billion as of March 31, 2026, down 3% YoY, driven by the large one-time Cango repayment and cautious new loan deployment amid 40% Bitcoin price drops from the October 2025 peak.
  • TVL per client increased 36% YoY, reflecting higher average loan sizes and deepened client relationships, from the strategy of prioritizing lower-risk borrowers.
  • Hash rate loans financed 34.2 exahash of capacity (3.3% of global hashrate) as of March 31, 2026, down from 81.3 exahash at December 31, 2025, almost entirely due to the Cango repayment.
  • Long-term institutional demand for crypto remains constructive, with spot Bitcoin ETF AUM reaching ~$102 billion as of mid-May 2026, and management expects miner financing demand to pick up as market conditions stabilize.

• Strategic Initiatives

  • Launched NINA, a Web3 AI agent, in public beta in May 2026, built on Antalfa's proprietary in-house Model Context Protocol (MCP) framework. The product provides a natural language interface to simplify user navigation of complex blockchain environments, leveraging Antalfa's existing deep Web3 and Bitcoin ecosystem domain expertise. The beta launch prioritizes user adoption and product iteration, with monetization not an immediate near-term goal.
  • Transitioned tokenized gold (XAUT) holdings to yield-generating deployments post-quarter: Antalfa committed 6,052 units of XAUT, and subsidiary Aurelien committed an additional 10,000 units, to the XAOEU protocol. This moves the holdings from passive balance sheet assets to active yield-generating investments.
  • Antalfa recognized $12.9 million in unrealized fair value gains on XAUT holdings in Q1 2026.

• Financial Performance

  • Net fee margin increased 21 basis points YoY, driven by price discipline, particularly in the margin loan segment. Supply chain loan net fee margin saw a small YoY decrease due to a shift toward lower-margin hash rate loans in the portfolio.
  • Total operating expenses (excluding crypto unrealized gains) were $25 million, up 102% YoY, including $10.4 million in funding costs, $3.3 million in one-time restructuring charges, and $1.3 million in non-cash equity compensation.

Consolidated: Total Q1 2026 revenue of $20.7 million, up 52% year-over-year (YoY). GAAP operating income was $6.6 million (32% operating margin), and net income attributable to Antalfa was $2.7 million, up from $1.5 million in Q1 2025. Adjusted EBITDA was $13.3 million (64% margin), $0.4 million (2% margin) excluding XAUT fair value gains.

Nalpha Prime (Core Lending, 100% of revenue contribution): Standalone revenue of $20.7 million, up 52% YoY. Technology financing fees on supply chain loans were $15 million (72.46% of total revenue), up 49% YoY. Technology platform fees on margin loans were $5.7 million (27.54% of total revenue), up 62% YoY. Standalone adjusted EBITDA was $4.4 million, up 77% YoY from $2.5 million in Q1 2025.

Aurelien (Digital Gold Token Subsidiary, 0% revenue contribution, operating income contribution only): Contributed $9.3 million of consolidated operating income in Q1 2026, all from XAUT fair value gains. As of March 31, 2026, Aurelien's net asset value was $116.4 million, with Antalfa holding a 32% economic interest.

• Q2 2026 total revenue guidance is set between $11 million and $30 million. Excluding the impact of the Cango large repayment, revenue is expected to decline 7% to 22% YoY, driven by the reduction in the interest-bearing loan base after the one-time Q1 repayment.
• Net fee margin and operating margin are expected to remain broadly stable sequentially from Q1 2026.
• Guidance assumes continued stable demand for crypto-collateralized financing in the current market environment. Actual results may differ from expectations, with updates to be provided on the next quarterly call as needed.
• Management reaffirmed three core 2026 priorities: maintain disciplined risk management to preserve the zero principal loss record, grow the core lending business with high-quality lower-risk clients, and advance the two new strategic growth curves (tokenized gold yield deployment and Web3 AI agent development).

• Forward-looking statements are subject to inherent risks and uncertainties that could cause actual results to differ materially from expectations, with detailed risk disclosures available in Antalfa's SEC filings.
• High crypto price volatility creates a challenging operating environment, with the potential to pressure collateral values and loan portfolio performance.
• Weak near-term digital asset market sentiment may limit new loan deployment activity and slow loan book growth until market conditions stabilize.
• The Web3 AI agent initiative is in an early stage, with no established market for the product and potential competition from existing general AI tools and new entrants. Monetization of the product is not expected in the near term.
• Regulatory uncertainty around digital assets remains, though management does not expect the recently proposed Clarity Act to have material direct impact on Antalfa's core lending business at this stage.

Q: Can you explain the strategic purpose of the new NINA Web3 AI agent, is it for user engagement or future AI revenue, and what differentiates it from existing products?

A: Management notes that AI is becoming the default interface for digital interaction, and Web3 currently has a fragmented, complex user experience that requires navigating multiple disconnected tools. NINA solves this pain point by providing an integrated natural language interface, built on Antalfa's proprietary MCP framework that leverages the firm's deep existing Web3 and mining ecosystem domain expertise that new generic entrants do not have. No major competing product focused specifically on Web3 users exists at this stage. The current near-term priority is product iteration and user accumulation, monetization is not on the near-term roadmap.

Q: How would clearer digital asset regulation under the Clarity Act impact Antalfa's scaling pace?

A: Management states that the Clarity Act is not expected to have material direct impact on Antalfa's core business of providing financing to Bitcoin miners at this stage, as the firm operates at the infrastructure level. Broadly, clearer regulation is expected to support overall development of the entire crypto ecosystem, which will benefit Antalfa indirectly over the long term.

Q: When was the full Cango loan repayment completed, and will there be other large upcoming repayments?

A: Almost the entire $526 million Cango repayment was completed in Q1 2026, with only a very small portion finalized in early Q2 2026. After this repayment, remaining outstanding balance from large borrowers is only ~$40 million, so even if any additional unexpected repayments occur, they will not have a material impact on the overall loan book.

Q: How does the deployed XAUT generate yield, and what is the expected target yield range?

A: The XAUT tokens are deployed in conservative investment arrangements run by the XAUT issuer, and the expected annual yield is between 1% and 2%. While this yield is modest, the deployment is a meaningful strategic step forward from holding the tokens as passive non-yielding assets on the balance sheet.