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MicroStrategy in Asia: Metalpha on coverage for sustainable investment


Metalpha Technology Holding Limited (NASDAQ: MATH) provides qualified investors and institutions with crypto wealth management services, as a rising star in Asia similar to MicroStrategy (MSTR). CEO Adrian Wang founded the company with a mission to create a sustainable crypto ecosystem with effective hedging solutions in an industry known for boom and bust cycles. By correctly applying derivatives, investors can “win more and lose less” when the market is in turbulence.

“The crypto industry continues to enjoy room for growth, despite the challenges of this year. We are looking very closely at ways to build a stronger and healthier global digital assets market, which we are doing in collaboration with our partners, such as Antalpha and many others. – Adrian Wang, Founder and CEO

The company changed its name from Dragon Victory International Limited (NASDAQ: LYL) and is backed by Antalpha Technologies Limited, the global leader in blockchain financial services. Over the past year, Metalpha has not only built a stronger internal trading, research and compliance team, but also entered into numerous partnerships such as the Litecoin Foundation, NextGen Digital Venture, GRVT, ParaX and many more. others. As a Nasdaq-listed company, Metalpha holds Type 4 (Securities Advisory) and Type 9 (Asset Management) licenses through its wholly owned subsidiary, LSQ Capital Limited, from the Securities and Futures Commission of Hong Kong (SFC).

The focus on compliance paid off when the SFC granted a Type 4 license increase. Metalpha and LSQ Capital actively worked with the SFC on the Type 4 license increase. With the license of type 4 enhanced, in addition to offering securities advisory services, LSQ Capital is now able to publish analyzes and reports on virtual assets to qualified investors.

Advantages of trading

As a leader in crypto derivatives, Metalpha offers its clients customized products, such as Accumulator and Snowball, based on mathematical models with careful financial engineering. The sales team has a wealth of experience with Wall Street banks. The company reported a notional amount of derivatives issued as $382 million under its wealth management arm, which generated revenue for the year of $5.7 million, up from $0.1 million dollars for fiscal year 2022, an increase of 5,600%.

The Company’s trading positions have always been targeted to be market neutral. The company has set strict risk limits on its positions and strictly complies with the regulatory requirements of the region in which it operates.

Bullish on Bitcoin

“The Bitcoin price surge indicates strong demand from global investors, encouraged by the recent performance of Bitcoin ETF inflows. We believe the halving planned for later this year could push the price of Bitcoin to a new high. – Adrian Wang, Founder and CEO

Metalpha is proud to be the long-term advocate of Bitcoin and blockchain technology. The company has expressed its belief in the future mass adoption of Bitcoin since the approval of Bitcoin ETFs. The company considers itself a growth-oriented crypto stock and is comparable to MicroStrategy in many ways. Both Metalpha and MicroStrategy focus on Bitcoin investing, while Metalpha has a particular focus on the wealth management industry. Since the successful restructuring, Metalpha stock has performed strongly, up more than 86% year-over-year as of March 3, 2024, according to Yahoo Finance.

Metalpha vs. MicroStrategy

“Working with the brilliant team at NextGen has been a pleasure. The launch of the NextGen Fund marked the first step for both parties to deploy compliant yet rewarding products together. We look forward to building a stronger partnership in the future.” Adrian Wang, Founder and CEO

Although Metalpha shares many similarities with MicroStrategy, key differences remain in business model, service locations and products. Metalpha’s revenue is heavily focused on growth in a bull market as the price of Bitcoin rises, leading to balance sheet expansion and increased trading revenue. In a bull market, a more active user base generally translates into a higher subscription rate. Therefore, revenue and company scale experience strong growth in a bull market.

While MicroStrategy is headquartered in the United States, Metalpha is based in Hong Kong. Recent Web3 policies promoted by Hong Kong regulators have proven to be effective and forward-looking. It is reasonable to expect that the digital assets sector will also flourish in 2024, as Hong Kong fully embraces Bitcoin ETFs, STO/RWA and other landmark innovations.

At the product level, Metalpha offers tailor-made hedging solutions and derivative products to qualified investors and institutions. Compared to MicroStrategy, Metalpha’s business model is broad, covering not only Bitcoin and Ethereum, but also other mainstream cryptos on demand. The company offers its clients a completely personalized investment and trading experience.

The company also aims to offer a wide range of products aimed at institutional investors. Metalpha has launched Next Generation Fund I, in partnership with NextGen Digital Venture Limited. According to Bloomberg, the $100 million target fund invests directly in Grayscale’s investment products and indirectly through structured derivatives relating to Grayscale’s investment products, providing institutions, family offices and high-net-worth individuals a channel compliant to gain indirect exposure to crypto.

Despite all the differences, Metalpha considers itself the MicroStrategy of Asia in the spirit of the crypto revolution and mass adoption of Bitcoin.

This is a guest post by Yiwei Wang. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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