Hilbert Group buys Enigma Nordic in $32 million deal to boost crypto trading edge

Core Insights - Hilbert Group, a Swedish investment firm, has acquired Enigma Nordic for $32 million, enhancing its algorithmic trading capabilities in the cryptocurrency market [1] Group 1: Acquisition Details - The acquisition provides Hilbert access to Enigma's proprietary trading system, which employs market-neutral strategies across global cryptocurrency exchanges [1] - The deal includes $7.5 million in newly issued Hilbert shares and up to $17.5 million in performance-based earn-outs, contingent on Enigma's strategies generating $40 million in net income [3] Group 2: Performance Metrics - Enigma has reported a trading volume exceeding 50 billion Swedish krona (approximately $5.4 billion) in 2025, with a Sharpe ratio above 3.0, indicating high performance in market-neutral digital asset strategies [2] - Despite the high trading volume, profitability is not guaranteed due to the nature of high-frequency trading strategies, which often face challenges like "alpha decay" [2] Group 3: Strategic Implications - Hilbert's CEO emphasized that the acquisition enhances the firm's ability to offer systematic crypto products to institutional investors, leveraging Enigma's technology and entrepreneurial team [4] - The integration of Enigma's platform into Hilbert's hedge fund offerings and proprietary trading desk is expected to lead to new investment products in the upcoming quarters [4] Group 4: Background Information - Hilbert Capital, the asset management arm of Hilbert Group, initiated a bitcoin-denominated hedge fund last year with an initial capital of $200 million [5]