Financial Data and Key Metrics Changes - Total revenues in Q3 2025 were $4.3 million, a decrease of 47.3% compared to Q2 2025, primarily due to the end of licensing revenues from Qualcomm [19] - Gross margin was 40.9% in Q3, down from 64.4% in Q2, reflecting a lower mix of high-margin licensing revenue [19] - Operating loss was $20.4 million in Q3, compared to an operating loss of $8.7 million in Q2 2025 [20] - Net loss for Q3 was $6.7 million, or $0.48 per diluted ADS, compared to a net loss of $9.1 million, or a loss of $3.59 per diluted ADS in Q2 2025 [21] - Cash and cash equivalents at September 30, 2025, totaled $13.4 million, down from $41.6 million at June 30, 2025 [21] Business Line Data and Key Metrics Changes - The IoT business pipeline remains healthy, representing about $550 million in potential three-year product revenue across 4G and RF product lines [10] - In Q3, the company won six new projects, with around $300 million of the pipeline being design win projects, a 20% increase from the last reported figure [10] - Q3 product revenue was impacted by minor delays, with expectations for Q4 product revenue to exceed $6 million [15] Market Data and Key Metrics Changes - The company holds 3,234 Bitcoin with a market value of $365.6 million, all pledged as security for $189 million of convertible debt issued in July [22] - Following a recent amendment of the debt agreement, 1,617 Bitcoin are being released from the pledge, and the company has sold 970 Bitcoin to reimburse half of the debt [22] Company Strategy and Development Direction - The company is committed to its Bitcoin treasury strategy and has proactively reduced its debt by 50% through a tactical sale of a portion of its Bitcoin holdings [5][6] - The goal is to unlock shareholder value and position the company better for future financing options, including preferred shares [7][9] - The IoT business is expected to grow and generate positive cash flow in 2026, with a potential 50% year-over-year growth into 2027 [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ramp-up of product revenue in Q4, despite challenges faced in Q3 [15][19] - The company aims to limit cash burn in 2026 to reach break-even by Q4, implementing a 20% cost reduction program across functions [18] - Management is exploring strategic alternatives for the IoT business to enhance overall value and cash flow generation [18] Other Important Information - The company is shifting from an opportunistic approach to a proactive go-to-market strategy for its IP portfolio, aiming to maximize customer reach and accelerate monetization [16] - The company has launched a new IP initiative and is in discussions for several licensing deals, with potential revenues from $3 million to $20 million [32] Q&A Session Summary Question: Were there any licensing or service revenues in Q3? - The revenue was about two-thirds product and one-third licensing and services in Q3 [26] Question: How aggressive will the company be on the buyback? - The company plans to be as aggressive as needed, considering the current stock price relative to net asset value [25] Question: What is the expected revenue for Q4? - The company is confident in achieving $7 million in revenue for Q4, based on backlog and secured orders [35] Question: What are the strategic alternatives being considered for the IoT business? - The company is exploring partnerships and other strategic options to enhance the value of its IoT business [18][33] Question: What is the timeline for the preferred shares issuance? - There is no specific timeline for issuing preferred shares, as it depends on negotiations and market conditions [45]

Core Insights - OranjeBTC, Brazil's largest Bitcoin treasury, has ceased purchasing Bitcoin and opted to buy back its own shares shortly after going public [1] - The decision comes as Bitcoin's price is currently 13% below its all-time high of $126,080, trading at $109,834 [2] - The company aims to maximize Bitcoin per share for its shareholders through disciplined capital allocation, considering both direct Bitcoin purchases and share repurchases when trading at a discount [3] Company Actions - OranjeBTC's share buyback is a response to its shares trading below net asset value, indicating a discount to equity value [4] - The company holds 3,708 BTC, valued at $408.3 million [4] - The buyback strategy has raised concerns among treasury observers regarding its effectiveness in boosting stock prices amid declining asset values [4] Industry Context - OranjeBTC competes with fintech company Méliuz, which claims to be South America's first Bitcoin treasury company [5] - The strategy of accumulating Bitcoin has been successfully pioneered by American software firm Strategy, which holds 640,808 Bitcoins worth approximately $70.5 billion [6] - Other Nasdaq-listed companies are also shifting their business models to focus on crypto accumulation, including firms like Metaplanet and BitMine Immersion [7] Market Outlook - Brazil is recognized as Latin America's largest digital asset market, with the highest number of crypto ETFs [8] - A prediction market indicates that 54% of respondents believe Bitcoin will reach $120,000, while a minority expects it to drop to $100,000 [8]