Oslo-listed bitcoin company Ace Digital reported a profit of NOK 6.3 million for the third quarter. Equity rose 19.3 per cent to NOK 39.1 million, debt is zero, and bitcoin exposure multiplied without the company buying any bitcoin.
Photo: Alexander Hagen, CEO of Ace Digital.
Ace Digital AS is listed on Euronext Growth Oslo under the ticker ACED and holds bitcoin as its primary reserve asset. On Monday 5 October the company published an unaudited update for the three months to 30 September. Behind the result is a combination of bitcoin options, an in-house bitcoin fund and preferred securities that pay cash distributions, while operating costs have been cut.
The NOK 6.3 million profit lifted equity from NOK 32.8 million to NOK 39.1 million. At the same time, debt of NOK 0.5 million was repaid, leaving the company with no debt at the end of the quarter.
Cash and short-term liquid investments, excluding bitcoin, stood at NOK 27.7 million at quarter-end. Operating costs were NOK 1.1 million, about 43 per cent below the quarterly pace in the first half.
Of total assets of NOK 39.1 million, NOK 6.7 million is a deferred tax asset — a booked value of past losses that can reduce future tax. It is unchanged since year-end and will be reassessed in connection with the audited annual accounts.
The value of the company's bitcoin holding, called Bitcoin Treasury, rose from NOK 0.9 million to NOK 4.3 million during the quarter, an increase of 373 per cent. Measured in bitcoin, the holding went from 1.6 to 5.3 bitcoin, without the company buying any.
The increase comes from options. At quarter-end, the company's net option delta corresponded to about 45 bitcoin — that is, how much the positions move in value when the bitcoin price changes, expressed in bitcoin. Together with the holding, that gives an estimated economic bitcoin exposure of about 50 bitcoin from this strategy, and about 57 bitcoin for the company as a whole.
Ace Digital says it increased exposure during the quarter because the risk/reward looked more attractive, and that options make it possible to hold substantial bitcoin exposure with considerably less capital. The objective, according to the company, is not to maximise exposure at all times but to allocate capital where it creates the most value per share.
The company's own fund, Ace Fund, has returned 23.1 per cent in US dollars since inception in November 2025. Bitcoin fell 23.7 per cent over the same period. The fund has not used leverage or held short positions.
Ace Digital's investment in the fund was valued at NOK 11.5 million at quarter-end, up 30.9 per cent from the previous quarter. The fund is funded exclusively by Ace Digital and closed to external investors.
The company says it is developing further strategies around bitcoin credit, income and multi-strategy investing, with a view to a bitcoin-focused asset-management platform under the name Ace Funds.
Ace Digital and Ace Fund together received about NOK 0.8 million in cash distributions from preferred securities during the quarter. That corresponds to about 80 per cent of Ace Digital's operating costs.
The holding consists of STRD, a preferred security issued by the US company Strategy (MSTR), formerly MicroStrategy. At quarter-end the companies had combined exposure to 27,600 STRD shares with a par value of USD 2.8 million. At the current annual distribution rate of 10 per cent, that corresponds to about NOK 2.7 million a year, subject to declaration.
The value of the preferred securities on the balance sheet rose from NOK 8.3 million to NOK 9.7 million during the quarter.
During the quarter, subsidiary MediaB completed working prototypes of three services: NewsB for bitcoin news, data and market intelligence, SquawkB for real-time news including audio, and RadioB.fm for 24/7 audio on bitcoin, markets, music and entertainment. Real-time onchain data is delivered by the company's own bitcoin node.
The services are intended to develop their own revenue streams, but the final corporate and ownership structure has not been set. No premium for these projects is included in the company's reported values.
The company's bitcoin mining pilot, Ace Invester, has generated an annualised internal rate of return of 9.1 per cent since inception.
Sources: Ace Digital
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