Bitcoin Treasury

Ace Digital is building a Nordic Bitcoin platform. We are structurally long and deeply convicted. But we believe conviction alone is not a strategy — it is a starting point.

Bitcoin has historically experienced drawdowns of 70–80% or more. It has also produced returns that no other asset class can match. A treasury strategy worthy of both realities needs more than exposure — it needs the tools and the discipline to navigate the full cycle. Our approach is to combine direct Bitcoin holdings with active risk management through derivatives, and to complement this with yield-generating activities across the Ace Digital ecosystem.

We preserve maximum strategic flexibility. Markets evolve. Instruments evolve. Regulation evolves. The Bitcoin capital markets infrastructure is still being built, and we intend to participate in that evolution — whether through new financial instruments, digital credit markets, or structures that do not yet exist — rather than commit to a posture that may not serve shareholders across all conditions.

Our primary KPI is Implied Bitcoin NAV — the company's net asset value expressed in Bitcoin. It is a deceptively simple metric with powerful implications.

A person holding only cash will see their Implied Bitcoin NAV rise when Bitcoin falls, and fall when Bitcoin rises. Growing Implied Bitcoin NAV requires generating returns — denominated in Bitcoin, not in Norwegian kroner — that exceed the cost of running the company. Every decision we make is evaluated against this standard.

Ace Digital's ambition is to build multiple Bitcoin yield engines that together justify a valuation premium over the underlying Bitcoin holdings. Today we see five distinct and developing sources of Bitcoin-denominated value creation across the group: a derivatives-driven Bitcoin treasury strategy, digital credit investments, Bitcoin-focused financial asset management, Bitcoin venture capital, and Bitcoin strategic advisory. Each engine compounds Implied Bitcoin NAV independently — and as the ecosystem matures, the number and scope of these engines is expected to grow. The result is a platform worth more than the sum of its Bitcoin.

Ace Digital's management brings over 30 years of derivatives experience from institutional markets — options market-making, proprietary trading, and fund management across equities and fixed income. We apply this expertise to Bitcoin, using systematic options strategies to shape the portfolio's risk and return profile: protecting capital during severe drawdowns while preserving meaningful participation in rising markets.

Derivatives are executed primarily on Deribit, the leading Bitcoin and Ethereum options exchange. Physical Bitcoin is held across institutional-grade custody and trading platforms. Strike prices, expiry, and structure are continuously adjusted to prevailing market conditions including implied volatility, term structure, and the company's overall positioning.

The company's direct Bitcoin exposure — through physical holdings and derivatives combined — can range from near zero to well above 100% of NAV, depending on market conditions and opportunity. But direct exposure does not tell the full story. Parts of the balance sheet that are not classified as Bitcoin holdings nonetheless carry significant Bitcoin-correlated exposure — including the company's investment in Strategy Inc. (formerly MicroStrategy) preferred shares and the capital allocated to Ace Funds. The effective Bitcoin sensitivity of the company is therefore typically higher than the headline exposure figure suggests.

Beyond treasury management, the Ace Digital ecosystem is developing multiple Bitcoin yield engines through its subsidiaries — each at different stages of maturity. Ace Funds AS operates an actively managed Bitcoin fund. Ace Invester AS pursues venture opportunities in the Bitcoin ecosystem. Ace Advise AS provides strategic and operational advisory services. These pillars are expected to expand over time as the Bitcoin capital markets infrastructure develops and new opportunities emerge.

The company's derivatives positions are collateralised by its physical Bitcoin holdings. Cash is maintained for operational requirements and to preserve the capacity to act on opportunities as they arise.