Connecting Excellence Group PLC Announces Interim Results for the Period Ended 31 Dec 2025 ELEMENT-- Back to the Newsroom Connecting Excellence Group PLC Announces Interim Results for the Period Ended 31 Dec 2025 Connecting Excellence Group Plc ("Connecting Excellence Group", "XCE", the "Group" or the "Company") Interim results for the period ended 31 December 2025 Net fee income growth driven by higher value placements following successful IPO LONDON, UK / ACCESS Newswire/ March 26, 2026 / Connecting Excel ...

Dow Jones46,930.60 +0.96% Nasdaq 10024,684.40 +1.46% Strategy Rises 5% as Bitcoin Momentum Meets the World's Largest Corporate BTC Treasury - 24/7 Wall St. S&P 5006,705.60 +1.24% Russell 20002,507.49 +1.35% FTSE 10010,342.40 +1.01% Nikkei 22554,502.00 +2.21% Live Nasdaq Composite: Tech Leads, Oil Eases With AI's Next Chapter in Focus Investing Strategy Rises 5% as Bitcoin Momentum Meets the World's Largest Corporate BTC Treasury By David MoadelPublished Mar 16, 2:12PM EDT Quick Read Strategy (MSTR) stock is ...

Core Viewpoint - MicroStrategy (MSTR) has seen a significant decline in stock value, falling 42.13% over the past year, with current trading at $138.46 compared to a consensus target of $378.71, primarily due to a collapse in Bitcoin prices and increasing financial burdens on common shareholders [1]. Group 1: Company Performance - MicroStrategy holds 738,731 BTC, making it the largest corporate Bitcoin holder globally [1]. - The company raised $25.3 billion in 2025, marking it as the largest U.S. equity issuer for two consecutive years [1]. - The Q4 EPS was reported at $42.93, significantly exceeding the estimate of $15.66, representing a miss of over 174% [1]. Group 2: Bitcoin Dependency - Bitcoin is currently trading at $69,498, down 20.12% year-to-date, which has led to a $17.44 billion unrealized loss in Q4 2025 [1]. - The company's FY2025 guidance was based on Bitcoin reaching $150,000, which it failed to achieve [1]. - The total annual software revenue of $477 million provides minimal cushion against further Bitcoin price deterioration [1]. Group 3: Financial Structure and Risks - Authorized shares have expanded from 330 million to 10.33 billion class A common shares, leading to relentless dilution [1]. - Preferred shareholders have a dividend obligation now running at 11.5% annualized, which has increased from 9% just months earlier, creating a structural drag on common equity [1]. - Product support revenue fell 16.9% year-over-year in Q4 2025, indicating consistent erosion across all four quarters of 2025 [1]. Group 4: Market Sentiment and Future Outlook - A sharp Bitcoin rally could reverse the current negative narrative, with prediction markets assigning only a 38% probability of Bitcoin reaching $100,000 by year-end [1]. - The stock has fallen 69.7% from its 52-week high of $457.22, making it a stock to avoid for retirement-focused investors due to extreme Bitcoin dependency and growing preferred obligations [1].

Core Viewpoint - Connecting Excellence Group Plc has demonstrated strong growth in its executive recruitment business, with a notable increase in net fee income and average fees per placement, indicating positive momentum following its IPO in December [1][2]. Group 1: Financial Performance - The company reported a 20.3% year-on-year increase in net fee income for the first half of the year [1]. - Average fee per placement rose by 12.7%, reflecting a strategic focus on higher-value mandates [1]. - The company achieved its best January on record with £0.25 million in net fee income following the reporting period [2]. Group 2: Strategic Initiatives - The successful IPO raised £3.3 million gross, which has strengthened the company's balance sheet and supported its Bitcoin treasury strategy [2][3]. - Since the IPO, the company has purchased 33.15 BTC for £2.2 million, utilizing both IPO proceeds and £64,000 from free cash flow [3]. - The company now holds a total of 52.42 BTC in treasury, including 9.27 BTC acquired prior to the IPO [3].

Core Viewpoint - Connecting Excellence Group Plc reported a significant increase in net fee income for the first half of 2026, indicating strong operational performance and growth in the executive recruitment sector [1] Financial Performance - The company generated net fee income of £0.89 million for the six-month period ended 31 December 2025, representing a 20.3% increase compared to £0.74 million in the same period of the previous year [1] - The average fee per placement increased by 12.7%, contributing to the overall growth in net fee income [1]

Core Business Overview - Connecting Excellence Group Plc operates as an international executive recruitment firm, placing senior-level professionals across various sectors including consulting, logistics, engineering, and technology [2][4] - A significant portion of the company's revenue is derived from US clients and candidates, with placements including US sales directors and UK managing directors [2][5] Bitcoin Treasury Strategy - The company began acquiring Bitcoin with surplus cash flows in 2021 during a period of price weakness, with revenues increasing at more than 30% compound annual growth during that time [3] - The company aims to accumulate Bitcoin to reach a target of 1,000 Bitcoin when beneficial to shareholders, indicating a long-term thesis that Bitcoin's value will increase over the next 5 to 20 years [3][4] Market Position and Future Plans - Connecting Excellence Group Plc has started trading on the OTCQB to broaden access to US investors, with around 30% of revenue already generated in the US [3] - The company is preparing for potential capital raising and increasing Bitcoin per share, alongside strategic hiring and a possible main market listing [4]

Core Viewpoint - MSTR shares have significantly underperformed, dropping 59.7% over the past year, contrasting sharply with the Zacks Finance sector's increase of 10.4% and the Zacks Financial - Miscellaneous Services industry's decline of 24.4% [1][8] Performance Comparison - MSTR has lagged behind peers such as Hut 8 Corp. and Riot Platforms, which saw gains of 164.6% and 26.5%, respectively, while HIVE Digital Technologies experienced a decline of 22.9% [2] Company Model and Market Sensitivity - The company's highly leveraged model has made MSTR a volatile proxy for Bitcoin, leading to increased sensitivity to fluctuations in the crypto market [3] - Institutional exits, potential MSCI exclusion, and rising competition from spot Bitcoin ETFs are diminishing its proxy premium, while ongoing equity issuance to fund Bitcoin purchases is pressuring long-term returns [3] Technical Indicators - MSTR is trading below both its 50-day and 200-day simple moving averages, indicating sustained bearish momentum and limited near-term upside potential [6] Bitcoin Treasury - MSTR holds 717,131 bitcoins valued at $58.9 billion, making it the largest corporate Bitcoin treasury globally, representing approximately 3.4% of all BTC ever to exist [10][12] - The treasury has been built through disciplined accumulation since Q3 2020, with a total acquisition cost of about $54 billion at an average price of $76,000 per bitcoin [11] Capital Raising and Growth Strategy - In 2025, MSTR raised $25.3 billion, becoming the largest U.S. equity issuer for the year, which accounted for about 8% of total U.S. equity issuance [13] - The capital raised has been primarily allocated to increasing Bitcoin holdings and strengthening the balance sheet, enhancing liquidity and supporting disciplined treasury expansion [14] Shareholder Security - MSTR's Bitcoin reserve provides a strong foundation for shareholder security, with net leverage near 10% relative to BTC reserves, maintaining a conservative capital structure [15] - The reserve supports long-term dividend sustainability, with $888 million in dividends estimated to provide approximately 67 years of coverage based on the current BTC reserve [17] Valuation - MSTR is currently trading at a premium valuation, with a forward 12-month price-to-sales (P/S) ratio of 74.18X, significantly above the sector average of 9.23X [18] - This premium valuation is supported by MSTR's ability to consistently grow BTC per share, even amid Bitcoin price volatility [19] Investment Recommendation - Despite the recent decline, MSTR's strong Bitcoin treasury and disciplined capital deployment create a structurally advantaged model, presenting a strategic buying opportunity for investors comfortable with volatility [22]

Core Insights - Connecting Excellence Group Plc operates as an international executive recruitment firm, focusing on placing senior-level professionals across various sectors including consulting, logistics, engineering, and technology [1] - The company has adopted a disciplined Bitcoin treasury strategy, beginning to acquire Bitcoin with surplus cash flows since 2021, during a period of price weakness [2] Company Overview - The majority of revenue is derived from US clients and candidates, with placements including US sales directors and UK managing directors [1] - The company has experienced over 30% compound annual growth in revenues, allowing for Bitcoin accumulation while maintaining an operating business that is uncorrelated to Bitcoin [2] Strategic Initiatives - A capital markets-focused board has been established to support the company's entry into public markets, with expertise in digital assets and pension funds [2] - The company aims to accumulate 1,000 Bitcoin when beneficial to shareholders and is preparing for a potential main market listing [3] Market Engagement - Connecting Excellence joined the OTCQB to enhance access to US investors, with around 30% of revenue already generated in the US [2] - The company is actively engaging with institutions for capital raising and increasing Bitcoin per share [2]

Financial Data and Key Metrics Changes - The company reported an operating loss of $17.4 billion and a net loss of $12.6 billion for Q4 2025, driven by a decline in Bitcoin's fair value under mark-to-market accounting [8] - For the full year 2025, the company reported an operating loss of $5.4 billion and a net loss of $4.2 billion, with results within target guidance based on Bitcoin price [8] - The digital assets increased from $23.9 billion at the end of 2024 to $58.9 billion at the end of 2025, reflecting a $17.9 billion increase in fair value [11] Business Line Data and Key Metrics Changes - The company successfully raised over $25 billion in total capital during 2025, funding growth across its treasury strategy and expanding its product ecosystem [4] - The company established a cash reserve of $2.25 billion in Q4, providing over 2.5 years of dividend coverage [6][18] - The company achieved a BTC Yield of 22.8% for the year, translating into a total BTC gain of 101,873 Bitcoin and a BTC dollar gain of $8.9 billion [9] Market Data and Key Metrics Changes - The market value of the company's Bitcoin holdings increased by approximately $17 billion, from $41.8 billion at the end of 2024 to $58.9 billion at the end of 2025 [16] - The company added approximately 225,000 Bitcoin during the year, increasing total holdings from 447,000 to 672,500 Bitcoin [17] Company Strategy and Development Direction - The company adopted fair value accounting at the beginning of the year, enhancing transparency of Bitcoin holdings [5] - The company aims to systematically increase Bitcoin per share over time, regardless of near-term market cycles, and to deliver durable BTC value for long-term investors [10] - The company is focused on digital credit issuance through its Stretch product, which is expected to amplify common equity and increase Bitcoin per share [46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging market conditions but emphasized the importance of holding onto Bitcoin and the fundamentals that support its value [21] - The company believes that the political landscape is increasingly supportive of Bitcoin, with significant recognition from key government officials [48][49] - Management expressed confidence in the company's ability to service its debt and dividends, even in a volatile Bitcoin market [33] Other Important Information - The company received its first-ever credit rating for a Bitcoin treasury company, marking a significant step in institutional recognition [6] - MSCI confirmed that digital asset treasury companies will remain eligible for inclusion in its global market indices, which is seen as a positive outcome [7] - The company has been actively engaging with regulators and policymakers to support its efforts on index inclusion [19] Q&A Session Summary Question: How does the company plan to manage its debt in a volatile Bitcoin market? - Management stated that they are not worried about servicing their convertible debt, as their Bitcoin reserve provides long-term durability [33] Question: What is the company's strategy for increasing Bitcoin per share? - The company plans to issue digital credit through Stretch, which is expected to amplify common equity and increase Bitcoin per share over time [46] Question: How does the company view the current political support for Bitcoin? - Management highlighted the significant shift in political attitudes towards Bitcoin, with key government officials now recognizing its importance [48][49]

Financial Data and Key Metrics Changes - The company reported an operating loss of $17.4 billion and a net loss of $12.6 billion for Q4 2025, driven by a decline in Bitcoin's fair value under mark-to-market accounting [8] - For the full year 2025, the operating loss was $5.4 billion and the net loss was $4.2 billion, with results within target guidance based on Bitcoin price [8] - Digital assets increased from $23.9 billion at the end of 2024 to $58.9 billion at the end of 2025, reflecting a $17.9 billion increase in fair value [11] - Total equity rose to $51.1 billion at the end of 2025, up from $22.8 billion a year ago, due to the addition of $6.9 billion in preferred equity [13] Business Line Data and Key Metrics Changes - The company added approximately 225,000 Bitcoin during 2025, increasing total holdings from 447,000 to 672,500 Bitcoin [17] - The Bitcoin yield for the year was 22.8%, translating into a total BTC gain of 101,873 Bitcoin and a BTC dollar gain of $8.9 billion [9] Market Data and Key Metrics Changes - The market value of Bitcoin holdings increased by approximately $17 billion from $41.8 billion at the end of 2024 to $58.9 billion at the end of 2025 [16] - The company established a $2.25 billion cash reserve in Q4, providing over 2.5 years of dividend coverage [6][18] Company Strategy and Development Direction - The company aims to systematically increase Bitcoin per share over time, regardless of market cycles, and to build durable shareholder value [10] - The adoption of fair value accounting and the receipt of the first-ever credit rating for a Bitcoin treasury company are seen as strategic milestones [5][6] - The company plans to focus on digital credit issuance to amplify common equity and increase Bitcoin per share [45] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of holding onto Bitcoin during market downturns, citing the fundamentals of Bitcoin as unchanged [21][22] - The company is optimistic about the future, with plans to continue raising capital and acquiring more Bitcoin [25] - Management expressed confidence in the company's ability to service debt and dividends despite Bitcoin price fluctuations [33] Other Important Information - MSCI confirmed that digital asset treasury companies will remain eligible for inclusion in its global market indices, which is viewed positively by the company [7][19] - The company has been actively engaging with regulators and policymakers to support its efforts on index inclusion [19] Q&A Session Summary Question: How does the company plan to manage its debt in a volatile Bitcoin market? - Management stated that they are not worried about servicing convertible debt, as the Bitcoin reserve significantly exceeds net debt, even in extreme downside scenarios [34][35] Question: What is the company's strategy for increasing Bitcoin per share? - The strategy involves issuing digital credit to amplify common equity, which is expected to increase Bitcoin per share over time [45][46]