Metalpha Technology Holding Ltd

Metalpha Technology Holding Ltd operates primarily in digital asset services, which it initiated in December 2021 through its subsidiaries. The company generates income mainly from cryptocurrency-related transactions, including providing derivative solutions to over-the-counter (OTC) clients and engaging in proprietary trading. For the fiscal years ended March 31, 2024, 2025, and 2026, Metalpha provided crypto derivative solutions and liquidity to clients, facilitating seamless trading. Additionally, it traded traditional derivative instruments with certain clients to meet their diverse digital asset demands. Income from digital asset services was $16.8 million, $41.5 million, and $37.1 million for the fiscal years ended March 31, 2024, 2025, and 2026, respectively. The company's Hong Kong subsidiary, LSQ Capital Limited, holds a license from the SFC (Securities and Futures Commission) to provide securities advising and asset management services in Hong Kong. Metalpha began generating revenue from these SFC-licensed activities during the current financial year, earning $3.1 million in revenue from this segment during the fiscal year ended March 31, 2025. It did not generate revenue from this segment during the fiscal year ended March 31, 2026. The digital asset business focuses on offering structured derivative solutions and related services to institutional clients and high-net-worth individuals seeking cryptocurrency exposure. These solutions are based on mainstream cryptocurrencies like Bitcoin, Ethereum, Tether tokens, and USD Coin, providing risk-adjusted exposure to mitigate the volatility typically associated with the cryptocurrency market. After transacting these solutions, Metalpha hedges its trading positions through various industry trading platforms.