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 combines direct Bitcoin holdings with active risk management through derivatives. The objective is to protect capital during severe drawdowns while preserving meaningful participation in rising markets — and to compound Bitcoin-denominated value over time.

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.

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.

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.