Metalpha Reports Half-Year FY2025 Financial Results with Revenues up Nearly Four-fold, and Announces a $5 Million Share Repurchase Program

Rhea-AI Summary

Metalpha Technology Holding (MATH) has reported strong financial results for the six months ended September 30, 2024, with total revenue reaching $19.7 million, representing a 388% increase compared to the same period in FY2024. The company achieved a significant turnaround with net income of $6.0 million, compared to a net loss of $3.9 million in the prior-year period.

Additionally, the Board of Directors has approved a $5 million share repurchase program to be executed over the next 36 months through open market purchases or privately negotiated transactions. The program reflects the company's confidence in its long-term strategic direction and commitment to delivering shareholder value.

The company's growth has been attributed to its focus on delivering high-quality digital asset wealth management products and services, along with investments in talent, technology infrastructure, and internal control systems.

Positive

• Revenue increased 388% year-over-year to $19.7 million
• Net income of $6.0 million, turning around from $3.9 million loss year-over-year
• Announced $5 million share repurchase program over 36 months

Negative

• None.

Insights

Financial Analyst

The financial results reveal a remarkable transformation in Metalpha's business model and operational execution. Revenue growth has maintained an accelerating trajectory, with each half-year period showing substantial improvements: from $1.7M to $5.1M to $11.7M, and now $19.7M. This consistent sequential growth pattern suggests strong market demand and effective execution rather than just market-driven gains.

The profit margin expansion is particularly noteworthy, with net income reaching 30.7% of revenue in the latest period. This indicates significant operational leverage in the business model, as revenue growth is translating into even stronger bottom-line improvements. The transition from a $7.0M loss to a $6.0M profit over four reporting periods demonstrates successful cost management and scaling of operations.

The $5M share repurchase program, representing approximately 6.8% of the current market capitalization, is strategically timed. With the company now generating positive cash flow and showing strong growth momentum, this capital allocation decision suggests management sees the shares as undervalued relative to their growth prospects. The 36-month timeframe provides flexibility to execute purchases opportunistically while maintaining capital for growth initiatives.

The company's investment in talent, technology infrastructure, and internal control systems indicates a focus on building sustainable competitive advantages in the digital asset wealth management space. These foundational investments, combined with the strong financial performance, position Metalpha for continued growth as institutional adoption of digital assets increases.

HONG KONG, Feb. 13, 2025 /PRNewswire/ -- Metalpha Technology Holding Limited (Nasdaq: MATH) (the "Company" or "Metalpha"), a global leader in digital asset wealth management, is pleased to announce its unaudited financial results for the six months ended September 30, 2024, with revenue up by an impressive 388% compared to the same period in FY2024. The Company also announced today that its Board of Directors has approved a share repurchase program of up to $5 million, reflecting confidence in the Company's future growth. Since the announcement of the Company's joint venture with Antalpha Technologies Limited on November 8th, 2021, Metalpha has grown to become a leader in digital asset wealth management, with its robust financial performance demonstrating substantial growth amid increasing adoption of cryptocurrency.

FY2025 Interim Results Highlights

For the six months ended September 30, 2024, Metalpha achieved total revenue of $19,720,654, nearly fourfold compared to $5,085,150 for the same period in FY2024. Net income reached $6,044,921, a remarkable turnaround from a net loss of $3,856,955 in the prior-year period. The growth was driven by the pursuit of delivering high-quality products and services to clients. The following table presents the Company's total revenue and net income (loss) for each of the six-month period ended September 30, 2024, March 31, 2024, September 30, 2023 and March 31, 2023:

	For the Six Months Ended
	September 30, 2024	March 31, 2024	September 30, 2023	March 31, 2023
Total Revenue	$19,720,654	$11,678,395	$5,085,150	$1,753,186
Net Income (Loss)	$6,044,921	$177,546	($3,856,955)	($7,033,059)

For further information regarding the Company's unaudited financial results for the first six months of fiscal year 2025, please refer to the unaudited consolidated financial statements of the Company as of September 30, 2024 and for the six months ended September 30, 2024, furnished to the U.S. Securities and Exchange Commission on Form 6-K and available at www.sec.gov.

$5 Million Share Repurchase Program

Metalpha's Board of Directors has approved a share repurchase program of up to $5 million over the next 36 months. The Company's repurchases may be made from time to time through open market purchases, privately negotiated transactions, or other legally permissible methods, depending on market conditions and the Company's capital requirements.

This share repurchase program reflects Metalpha's confidence in its long-term strategic direction and commitment to deliver value to its shareholders. Through disciplined capital allocation, Metalpha aims to enhance per-share value and provide long-term returns for its investors.

Adrian Wang, chairman and CEO of Metalpha, expressed optimism about the Company's future:

"The robust interim results, coupled with our growing partnerships and expanded financial offerings, showcase our commitment to meet the customer demand. Behind the attractive financial numbers, we made significant investments in areas that are less apparent but even more critical to our success. Best talents, state-of-the-art technology infrastructure, and extremely comprehensive internal control systems are all essential for long-term scalability and sustainability. These efforts demonstrate our dedication to excellence. Looking ahead, we remain focused on advancing technology, enhancing customer experiences, and innovating best digital asset derivative products."

About Metalpha Technology Holding Limited

Founded in 2015, Metalpha Technology Holding Limited (Nasdaq: MATH) went public on October 20, 2017. The listed Company, through its subsidiaries, is dedicated to providing investing and wealth management services with a full-service, institutional-grade platform. With dedicated blockchain expertise, the Company aims to become a leader in the field of crypto wealth management services, bringing robust innovation and transparency to the customers and businesses it serves.

Forward-Looking Statements

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Management has based these forward-looking statements on its current expectations, assumptions, estimates and projections. While they believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond management's control. These statements involve risks and uncertainties that may cause Metalpha's actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

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SOURCE Metalpha Technology Holding Limited

FAQ

What was Metalpha's (MATH) revenue growth in H1 FY2025?

Metalpha's revenue grew by 388% to $19.7 million in H1 FY2025 compared to $5.1 million in the same period of FY2024.

How much is Metalpha's (MATH) share repurchase program worth?

Metalpha's Board approved a $5 million share repurchase program to be executed over the next 36 months.

What was Metalpha's (MATH) net income for H1 FY2025?

Metalpha reported a net income of $6.0 million for H1 FY2025, compared to a net loss of $3.9 million in the same period last year.

How will Metalpha (MATH) implement its share repurchase program?

Metalpha will execute the repurchase program through open market purchases, privately negotiated transactions, or other legally permissible methods, depending on market conditions and capital requirements.