Antalpha Platform Holding Company Q2 FY2026 earnings call

• **Overall Market Context & Core Strategic Approach • The Q2 2026 digital asset ecosystem saw a more muted financing environment, with most customers prioritizing liquidity management, operational efficiency, and prudent capital allocation. • Management maintains a long-term value creation objective focused on sustainable growth rather than maximizing short-term loan growth, and has maintained a zero principal loss track record across all market cycles since inception, which is framed as a key competitive differentiator. • Capital deployment remains selective, with the company optimizing its funding structure and upholding strict underwriting standards at all times.

• **Nalpha Prime Operational Updates • While total financing activity moderated and the total loan portfolio value declined quarter-over-quarter from $1.61 billion to $1.35 billion, management emphasizes this reflects both customer behavior and intentional selective deployment, not a changed long-term market outlook. • Total financing for Bitcoin mining reached approximately 30.9 exahash, representing ~3.1% of the global Bitcoin network hashrate at quarter-end. • Technology platform fees increased 10% year-over-year to $4.5 million, driven by improved pricing in the margin loan business, offsetting a portion of the 40% year-over-year decline in technology financing fees (to $7.7 million) from lower activity and average loan balances.

• **Nina Web3 AI Operational Updates • The business delivered key product enhancements and launched publicly available iOS and Android mobile applications, expanding access to a broader user base. • Near-term focus remains on product development, improving user engagement and retention, and evaluating long-term commercial potential, rather than immediate monetization.

• **Aurelien Digital Gold Strategic Rationale • Management reaffirmed its long-term confidence in tokenized gold as an emerging on-chain digital asset, noting that XAUT prices had recovered to above $4,300 per unit as of August 18, 2026, after the quarter-end decline. • Tokenized gold is expected to serve as a long-term store of value, high-quality collateral, and yield-generating asset in the evolving digital asset ecosystem as institutional adoption broadens.

1. Nalpha Prime (Flagship Financing Platform): Standalone revenue of $12.2 million for the quarter, which represented 100% of the firm's reported total revenue from core operations. It operated profitably on a standalone GAAP basis. Reported a standalone adjusted EBITDA loss of $3.3 million, which included a $3.9 million fair value loss on XAOE holdings; adjusted for this fair value movement, it generated $0.6 million of adjusted EBITDA (8.5% adjusted EBITDA margin) compared to $4 million (24% adjusted EBITDA margin) in Q2 2025. Net fee margin improved 10 basis points year-over-year, while funding costs remained broadly stable at 69% of technology financing fees.

2. Nina (Web3 AI Business): In the early commercialization stage. It reached several thousand registered users across website and mobile applications, with the majority of registered users completing at least one core product interaction. No material revenue contribution was reported this quarter.

3. Aurelien (Digital Gold/Tracked Gold Business): Reported an operating loss of $24.4 million in the quarter, primarily driven by $22.3 million in unrealized fair value loss from XAUT holdings (resulting from a price decline from $4,667 per unit at the start of the quarter to $3,996 per unit at quarter-end). As of June 13, 2026, Aurelien had a net asset value of approximately $91.9 million, with Antelpha holding a 42% economic interest representing $29 million in attributable net asset value. No positive revenue contribution to consolidated operating revenue this quarter.

• Antelpha guided Q3 2026 (the call incorrectly referenced

• The overall financing environment is expected to remain muted in the near term. • Forward-looking statements and all future results are subject to material risks and uncertainties that could cause actual outcomes to differ materially from current expectations, with detailed risk factors available in the company's SEC filings. • No credit or risk management framework can eliminate all risk entirely, even with structured rigorous processes in place. • Short-term accounting volatility from unrealized fair value movements in crypto and digital gold assets can significantly impact reported GAAP consolidated earnings in a given quarter, even when these movements do not impact long-term strategic value. • Growth in new loan origination depends on multiple external factors including market stability, Bitcoin price levels, trading activity, and borrower confidence, all of which remain uncertain in the near term.

Q: Analyst asks for detail on yield from XAUE holdings, whether this yield is reported as revenue, and asks follow-up questions about average mining costs for Nalpha Prime's mining customers and the Bitcoin price level needed to drive a recovery in lending activity.

A: Yield from XAUE holdings is not reported as part of core lending revenue; it is recorded in the non-operating section of financials. The yield generated this quarter was not material, but it marks a meaningful first step toward utilizing held assets rather than just holding them. There is no specific Bitcoin price target that would trigger a lending recovery; management monitors market conditions regularly, and expects higher activity will follow rising Bitcoin prices and trading volumes. Average mining costs are case-by-case, varying based on mining machine model, electricity prices, and mine location; some customers remain profitable at current Bitcoin prices.

Q: Analyst asks for Nina's commercialization strategy, top user use cases, early product learnings, and how these shape the product roadmap.

A: Nina remains in an early product validation stage, so the current focus is building a useful product, improving user engagement and retention, and expanding functionality rather than formal commercialization. Most user interactions center on Bitcoin price trends, hot Web3 application trends, and crypto-related economic questions. The ongoing roadmap prioritizes improving user experience to make the tool more accessible and useful for all Web3 users.

Q: Analyst asks about Nalpha's specific risk mitigation strategies for crypto lending, the outlook for the loan book, and sources of confidence in future demand.

A: Nalpha uses a conservative, multi-layered risk framework that includes rigorous underwriting, over-collateralization, active collateral management, and ongoing client engagement; for mining loans, mined Bitcoin is held in controlled wallets for additional protection. Management expects to continue selective capital deployment; the main constraint is finding opportunities that meet risk-adjusted return thresholds, not access to capital. No sharp near-term increase in originations is expected. When market conditions stabilize and borrower confidence improves, origination activity will likely rise, but growth will depend on meeting the firm's strict risk requirements.