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Crypto Wealth Manager Metalpha Reports Significant Growth in Derivative Products, Eyes Future Expansion

Despite financial challenges, the company reported a notable increase in income, underlining its innovative approach and market confidence.

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Metalpha Technology Holding Limited (Nasdaq: MATH), a frontrunner in the digital asset-based wealth management sector, has published its financial outcomes for the fiscal year ended March 31, 2023.

The company announced a notable increase in the notional amount of derivative products issued, reaching $382 million, up from $49 million the previous year, underlining a significant surge in its wealth management business, according to a announcement today.

Despite the financial hurdles, Metalpha showcased a remarkable fiscal-year income of $5.7 million from its wealth management operations, a substantial rise from just $0.1 million in FY 2022. This growth is attributed to the company's innovative approach in designing and issuing derivative products tailored for the cryptocurrency market, catering to the needs of institutions and professional investors.

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However, the company faced financial challenges, reporting a total net loss of $20.4 million for the year. This loss was mainly due to expenses related to warrant issuance, share-based payments, and a one-off discontinued business, Metalpha said. Adjusting for these factors, the company's loss was approximately $0.7 million, indicating a near breakeven scenario.

Adrian Wang, president of Metalpha, expressed optimism about the company's future, citing strong demand for customized products and high customer satisfaction. "The fast growth of our wealth management business indicates the market’s confidence in our business approach," Wang stated. He also highlighted the company's commitment to compliance and innovation, aiming to expand its market share in Asia and beyond.

Founded in 2015 and going public in 2017, Metalpha has positioned itself as a leader in crypto wealth management services, offering a full-service, institutional-grade platform with dedicated blockchain expertise.

"At the company level, we aim to maintain a high growth rate and significantly lower expenses as our business scale expands. We will also continue to innovate and diversify our business offerings in a bid to expand our market share in Asia,” Wang said.

Metalpha holds a Type 4 and Type 9 license from the Securities and Futures Commission of Hong Kong. Earlier this year, the firm announced an investment in NextGen Digital Venture Limited to strengthen institutional access to digital assets. The two sides launched the Next Generation Fund I in April 2023, focusing on Grayscale Investments's suite of products.