SUIG

Image source: The Motley Fool. Aug. 6, 2026 at 5:00 p.m. ET Chairman of the Board - Marius Barnett Chief Executive Officer - Douglas Polinsky Chief Financial Officer - Joseph Geraci Operator: Good afternoon, everyone, and thank you for participating in today's conference call to discuss SUI Group's financial and operating results for the second quarter ended June 30, 2026. Joining us today are SUI Group's Chairman of the Board, Marius Barnett; Chief Executive Officer, Douglas Polinsky; and Chief Financial Officer, Joseph Geraci. By now, everyone should have access to the company's second quarter 2026 earnings press release, which was issued this afternoon at approximately 4:05 Eastern Time. The release is available in the Investor Relations section of the company's website at www.suig.io. This call will also be available for webcast replay on the company's website. Following management remarks, we'll open the call up for questions. Please be advised this conference will contain statements that are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements can often be identified by the use of words such as believe, expect, intend, continue, will, may, should, estimate, potential or similar expressions. These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC, such as the inherent volatility and risks associated with investing in SUI. Do not place undue reliance on any forward-looking statements, which are being made only as of the date of this call. Except as required by law, the company undertakes no obligation to publicly update or revise any forward-looking statements. For important risks and assumptions associated with such forward-looking statements, please refer to the company's SEC filings. During this call, we will also reference certain non-GAAP financial measures. Reconciliations of these measures to the most directly comparable GAAP financial measures are included in today's earnings press release and are also available on the Investor Relations section of our website at www.suig.io. I will now turn the call over to the company's Chairman of the Board, Marius Barnett. Marius Barnett: Thank you, and good afternoon, everyone. Digital asset markets remained volatile during the second quarter, but the institutional development of the sector continue to advance. Across custody, staking, stablecoins, tokenization and market infrastructure, the distinction between traditional and on-chain finance is becoming less pronounced. Established financial institutions are increasingly evaluating where blockchain can improve the movement, settlement and ownership of financial assets. That progression is particularly relevant to the SUI network. We believe the network is moving beyond the period defined principally by technical differentiation and into one where that architecture is supporting increasingly substantive financial activity. For example, the network sustained 297,000 transactions per second with finality at 300 milliseconds, underscoring its horizontal scalability. SUI developer count has grown to 1,400 and ranks 10th amongst all chains by GitHub activity, reflecting the continued growth of its builder ecosystem. During the quarter, institutional access to SUI tokens continued to expand. Coinbase introduced direct staking, giving eligible users and institutions a more established access point for participating in the network's proof-of-stake economics. We also saw further evidence of SUI's relevance to tokenized financial markets through the availability of a tokenized private market strategy from Mubadala Capital on the network. We believe developments like this demonstrate that institutional asset managers are not using the SUI network merely as a simple trading venue, but as infrastructure for delivering financial products on chain. SUI has also been developing infrastructure to unlock the productive use of Bitcoin's more than $1 trillion in dormant capital. Hashi, SUI's native primitive for this purpose, lets Bitcoin be used as a verifiable collateral for lending and other financial products while it remains securely on its native chain. During the quarter, Cumberland, Fluid, and SwissBorg joined the growing coalition of partners building on Hashi ahead of its global testnet launch this month, bringing the coalition to more than 20 marquee participants, including BitGo, Bullish, FalconX, and Ledger, further evidence of institutional demand for verifiable on-chain infrastructure that can put Bitcoin's capital to productive use. Network activity continued to scale as well. SUI surpassed 4.5 billion cumulative transactions, reflecting the breadth of applications and user activity developing across the ecosystem. SUI also introduced protocol level gasless stablecoin transfers, allowing supported stablecoins to move without requiring users to maintain a separate SUI balance for transaction fees. Between May 10 and June 10, the network processed approximately $65 billion of stablecoin transfer volume, which we believe provides an early indication of the demand for low-friction payment infrastructure. This is an important improvement for payments and other high-frequency use cases because it reduces friction at the point of transaction. The combination of these developments shows the ecosystem advancing across dimensions at once, institutional access, tokenized assets, payments, infrastructure and underlying network usage. We believe this reinforces the long-term rationale for aligning SUI Group with the SUI ecosystem. SUI's parallel execution model, object-centric architecture and low-latency settlement were designed for applications that require high transaction volumes, predictable execution and composability across financial products. These attributes become increasingly important as blockchain infrastructure is adopted for payments, trading, tokenized assets and autonomous financial systems. In our view, institutional adoption will ultimately concentrate around networks capable of supporting those use cases reliably and at scale. Turning to our treasury. As of the 3rd of August 2026, we have approximately 109 million SUI tokens. A significant majority of our holdings are staked generating an estimated annual yield of approximately 1.7% and approximately 5,300 SUI per day. Based on the closing prices of SUIG common stock and SUI on August 3, we are trading at an approximate mNAV of 0.72x. A full mNAV calculation is included in the back of our Q2 2026 earnings PR release before the call. Native staking is an important component of the treasury, but it is only one component. We are also evaluating opportunities to enhance balance sheet productivity by lending capital to our ecosystem and strategic partners on a risk-adjusted basis. Our expanded relationship with Bluefin reflects that approach. Bluefin has developed a broad financial platform on SUI's network spanning perpetual and spot trading, lending, liquidity and vault infrastructure. During the quarter, we lent an additional 4 million SUI tokens to Bluefin, bringing our total commitment to 6 million SUI tokens. In exchange, our participation in certain Bluefin revenues increased from 5% to 11% payable in SUI. The amended agreement has an initial term extending through September 2028. We view the infrastructure as more than a lending arrangement. It gives SUI Group economic exposure to the development of what we believe to be a core financial venue within the ecosystem and creates a return profile that is distinct from passive staking. It also demonstrates the role we believe SUI Group can occupy over time, a source of strategic capital for businesses building meaningful financial infrastructure on the SUI network, where the terms provide an appropriate balance of return, risk and alignment. Active treasury management also requires a willingness to reduce exposure when conditions change. During Q2, following a reassessment of the risks associated with certain DeFi activities, we unwound those positions and recovered all amounts deployed. We do not regard capital deployments as permanent simply because the position has been established. Counterparty, protocol, liquidity and operational risks must be evaluated continuously, particularly in markets that are developing rapidly. Separately, as of June 30, 2026, we have approximately 10 million suiUSDe. Stablecoins are an essential component of on-chain financial markets because they provide the monetary base for payments, trading, lending and settlement. Our participation in suiUSDe is currently strategic rather than a material source of near-term revenue. It is intended to support liquidity and adoption within the SUI ecosystem while positioning SUI Group alongside infrastructure that could become more economically significant as the network develops. We also continue to selectively allocate capital into high-conviction themes at the intersection of digital assets, financial technology and artificial intelligence, where we believe some of the most consequential developments in agentic finance are beginning to take shape. One early example is Walrus, a decentralized storage network built on SUI that allows AI agents to persist and retrieve memory on chain. Its Walrus memory product recorded its first full month of agentic use in June with more than 3,500 unique agent owners and over 80,000 memories registered by agents. This emerging activity reinforces our view that autonomous systems will increasingly require specialized intelligence and infrastructure designed to support complex financial decision-making. Acting on our conviction in agentic finance, we invested $3 million through a SAFE in Nof1, an artificial intelligence research company developing frontier artificial intelligence models specifically for financial markets. Its Alpha Arena platform was designed as a live benchmark to evaluate whether leading AI models could generate returns using real capital and autonomous trading decisions. The initial results demonstrated the limitations of general-purpose models in financial markets and reinforced Nof1's thesis that effective AI-driven trading will require specialized training, infrastructure and execution capability. Nof1 is now developing its own models with expanded reasoning, research and multi-step execution capabilities. Over time, we intend to evaluate whether those models can be used to support treasury yield and return generation, subject to appropriate testing, oversight and risk controls. We also invested $3 million in Recursive Superintelligence as part of its $650 million financing round, which valued the company at more than $4 billion. Recursive is developing open-ended algorithms and artificial intelligence systems designed to improve their own capabilities over time. Its work is focused on creating systems that can support continuous self-directed scientific discovery rather than operating within a fixed set of predefined tasks. The company's team includes researchers and entrepreneurs with experience across OpenAI, DeepMind, Google Brain and Meta. We believe that combination of technical depth and long-duration research ambition provides SUI Group with exposure to foundational capabilities that could influence how advanced autonomous systems operate across finance and other industries. Nof1 and Recursive address different parts of the opportunity. Nof1 is focused on the near-term application of specialized agentic artificial intelligence to financial markets, while Recursive is pursuing underlying capabilities that could define the next generation of artificial intelligence. Together, these investments reflect our view that agentic finance will be shaped by both sides of that equation, increasingly capable autonomous systems and programmable financial infrastructure through which those systems can transact. As our activities expand, we are also focused on strengthening the institutional capabilities required to support the next phase of our development. That includes deepening our leadership bench, enhancing financial oversight and ensuring that our governance and operating structure continue to evolve with the scale and complexity of the platform. The recent appointment of Kristina Campbell as an independent director and chair of SUI Group's audit committee is an important example of that effort. Kristina brings more than 2 decades of experience across digital assets, fintech, payments and high-growth technology companies. She currently serves as Chief Financial Officer of Wrapbook and previously served as Chief Financial Officer of Ripple Labs and PayNearMe. Her experience building finance organizations, navigating evolving accounting and regulatory requirements and overseeing digital assets related to financial governance will be directly relevant as we continue to scale. More broadly, the board is continuing to assess the leadership, governance and organizational capabilities required to support SUI Group's long-term strategy. We want to ensure that our business has the depth of talent, financial discipline and operating infrastructure necessary to evaluate opportunities effectively and manage the balance sheet responsibly. Over the past year, SUI Group has progressed from establishing a treasury position to actively enhancing balance sheet productivity through risk-adjusted lending to our ecosystem and strategic partners and selectively allocating capital to technologies that we believe could shape the future of digital finance. Looking ahead, we remain focused on increasing SUI per share and improving the productivity of our balance sheet to generate attractive long-term returns. We believe these initiatives, coupled with our prudent approach to capital allocation will enable us to deliver durable value to our shareholders. With that, I'll turn the call over to Doug Polinsky, our Chief Executive Officer, to provide an update on our specialty finance operations. Douglas Polinsky: Thank you, Marius, and thank you, everyone, for joining today's call. I'll provide a brief update on our legacy specialty finance business, where our focus is on actively managing the existing portfolio and protecting the value of the remaining investments. As we have discussed in prior periods, that business is built around providing short-term non-bank financing solutions and generating returns through interest income, transaction fees and related investments. While the portfolio is now substantially smaller than it was historically, we continue to apply the same disciplined approach to underwriting, credit oversight and portfolio management. During the first half of the year, we received approximately $900,000 of repayments and redemptions from legacy investments. As of June 30, 2026, our remaining traditional lending portfolio consisted primarily of approximately $2.2 million of non-bank loans measured at fair value. We're continuing to monitor borrower performance, evaluate collateral and available sources of repayment and work through individual positions to maximize recoveries. Certain borrowers continue to face credit and refinancing challenges, and we are addressing those situations on a loan-by-loan basis while considering the full range of contractual remedies available to us. Given the size and current composition of the portfolio, we do not expect our lending business to be a significant driver of new originations in the near term. We will remain selective, however, and would consider an opportunity where we have appropriate collateral protection, clear visibility into repayment and a return profile that adequately compensates us for the risk. Although we continue to see selective opportunities in specialty finance, our resources and long-term priorities are increasingly concentrated on maximizing the value of SUI Group through scalable, transparent and long-term value creation strategies. With that, I'd like to turn the call over to our Chief Financial Officer, Joseph Geraci, to take you through our financial results. Joe? Joseph Geraci: Thank you, Doug. A quick reminder as we review our second quarter financial results, all comparisons and variance commentary refer to the prior year quarter unless otherwise specified. Due to our strategic shift on July 31, 2025, from our specialty finance business toward blockchain native treasury management, our historical financial condition and results of operations for the period presented may not be comparable. Total revenue and other income for the second quarter of 2026 was $1.2 million compared to $948,000 in the quarter 2, 2025. The increase was primarily driven by the generation of SUI staking revenue and digital lending interest income from our SUI digital asset treasury strategy. Our second quarter 2026 results include approximately $16.6 million of noncash losses on digital assets and receivables, consisting of $18.9 million in realized losses, partially offset by an approximately $2.3 million unrealized gain. The realized loss includes a $14 million loss recognized in connection with the additional SUI loan to Bluefin and a $2.4 million loss related to the return of SUI tokens from Galaxy Digital in its capacity as our asset manager. The realized gains and losses were primarily driven by mark-to-market adjustments due to the change in the price of SUI during the period. These U.S. GAAP required accounting treatments reflect changes in estimated fair value and strategic deployment of digital assets and do not represent an actual cash outflow or impact our liquidity. As a result, total operating expenses, including the aforementioned noncash losses on digital assets and receivables in quarter 2 2026 were $20.1 million compared to approximately $2,000 in quarter 2 2025. Excluding the noncash losses on digital assets and receivables, operating expenses for the second quarter of 2026 were $3.4 million. Net loss for the second quarter of 2026 was $18.9 million or $0.23 per diluted share compared to net income of approximately $677,000 or $0.11 per diluted share in the quarter 2 2025. As of June 30, 2026, cash and cash equivalents were $3.1 million compared to $21.9 million as of December 31, 2025. This concludes our prepared remarks. We will now open it up for questions from those participating in the call. Operator, back to you. Operator: [Operator Instructions] Our first question is from Brian Kinstlinger with Alliance Global Partners. Kevin Pimental: This is Kevin for Brian. First question is, while the price of SUI is being pressured, what are management's top 2 or 3 priorities? Marius Barnett: Kevin, Marius. Yes, I mean, look, obviously, our priority for a long time has been looking at risk across the whole business. And I think we've taken a very disciplined approach to risk. We maintain quite a lot of cash on our balance sheet so that we're not under pressure to have to sell SUI or to sell shares in the market to fund the business. And then we haven't taken any debt on the business. So we're in a very comfortable position from an operating perspective. I think the second thing is looking at yield return. We continue to look at risk-adjusted ways to get significant return on the balance sheet. That's obviously, as you know, we removed all SUI tokens from DeFi in the previous quarter. However, we expanded the partnership with Bluefin. That loan is yielding approximately 5% to 6%. That has a lot of embedded optionality in it if DeFi returns to the level that it was, and that's on a bilateral basis that we did that. We're also looking at different lends to market makers and institutional lenders to continue to enhance return. Kevin Pimental: Got it. And then I guess on the Bluefin partnership that you just spoke about. What drove the decision to increase the loan to 6 million SUI and raise your revenue share to 11%? And then what milestones or growth on the Bluefin platform that would drive more material contribution to the company? Marius Barnett: Yes. So the Bluefin platform bought the biggest lending business on the SUI ecosystem called Suilend. It was part of an acquisition. So the extra lend was part of us actually financing them to actually buy Suilend, which is the biggest lending platform and increase the size of their business quite dramatically. It wasn't just a single transaction. So it was on a risk-adjusted basis, they were increasing revenues within their business. And we think that consolidation in these markets generally across the board is happening more and more every day. So that actually they can be much bigger businesses in the longer term as they add product sets. And we felt it was a very good acquisition, how they negotiated it. Kevin Pimental: Got it. Makes sense. And then you talked about it a little bit prior, but with the crypto prices and particularly the pressure on SUI, what is the demand like for similar partnerships to that Bluefin deal that can result in an outsized yield? And then has that pressure on SUI resulted in the pipeline shrinking? Or are there any delays in that? Marius Barnett: Look, there are opportunities around. But the key for us is, as you say, risk. We need to be certain that we've got the right structures in place and that the company has the right balance sheet. We don't look at this as a lend in any form as an equity investment. We expect at the end of the term if we want our SUI tokens back that we will receive them back. And that's why we take a deep, deep approach to looking at risk. Now obviously, with the SUI price being down and general DeFi across all different blockchains being dramatically reduced in the ecosystem, number one, because pricing is down. And then number two, from Q1, there were quite a lot of hacks in the market. That definitely seems to be getting under control slowly as we go along the hacks. I mean there are still one or 2 that have happened in the last quarter. But certainly, a lot of these protocols have tightened up and are using -- there are a lot more good people in the world than bad people. So the same way AI is used on a negative basis for security, it's being used on a positive basis to enhance security as well. So we do see the opportunities, but they -- I suppose, because of our risk-adjusted approach of how we look at this and how we look at risk, a lot of them don't meet the criteria to do that. And that's why we look at what we call more like an institutional lending basis, where we've developed relationships with market makers and institutional businesses that have better balance sheets to take on that risk. It may mean slightly less yield versus going into DeFi markets. But from a risk perspective, we believe it makes more sense. Kevin Pimental: Got it. That makes sense. And then last question. As of some June reports, the SUI blockchain was failing considerably on some of the competing smart contract blockchains like Ethereum and Solana. What do you think can be done to improve the churn in users on-chain? And then would that be something like building more dApps, greater adoption of stablecoins or something else? Marius Barnett: Look, I think it's just that SUI's got an extremely focused team and business. There are approximately 1,400 developers on the chain at the moment and it's in the top 10 blockchains there are. I think the team's been -- Adeniyi put out a great blog post and the team's been very vocal on the key areas that they'll been focusing on. Stablecoin volumes hit all-time highs in the last month. The speed of the blockchain, they're able to maintain 297,000 transactions per second. There's a lot of work that's being put into privacy transactions on-chain. And so I think there's some very exciting projects. And I think the key longer term is the outlier here, which can really move the crypto markets, in my view, is agentic commerce and agentic finance. And for, it's a, like we've always said, those sectors are prime to use blockchain, the payments and wallets and rails to operate. In my view, it's a question of not if, but when that breakout app or company will use it. I think that needs one of the major AI companies to demonstrate that as a proof case. Operator: Our next question is from Gareth Gacetta with Cantor. Gareth Gacetta: We were pretty excited to see the OpEx profile this quarter. You guys improved to the tune of nearly $40 million there. So I was wondering if you could talk about where we sit from a run rate perspective, maybe excluding the mark-to-market on your digital assets. But in terms of kind of the operating cost base, where might there be any additional efficiencies achieved over time? And where might kind of traditional run rates kind of play out? Marius Barnett: Yes. I think we spent a lot and we've spoken about this before of how much time we spent on bringing the operational cost of the business down. I think over the last 12 months, we brought it down by about 50%, and there are certainly some areas we still can bring it down. I think from a cash and cash -- excluding the treasury, just from cash and cash equivalents on the balance sheet at the moment, we've got over 2 years runway of operating costs, and that excludes any yield or return that we get from the balance sheet or income from the loans or anything. So I think we're sitting very comfortably at the moment. Gareth Gacetta: Awesome. That's great to hear. And maybe you could just touch on as you guys think about kind of the structure of the cost profile of the business and some of these additional investments or areas that you may look to go down, how do you think about weighing with this cash balance you have, buybacks of common stock versus an investment in something like Nof1 or Recursive Superintelligence. Just thinking about if you have some excess cash, and I know 2 years is a decent amount of time, but could you potentially put that cash to use elsewhere in terms of generating some shareholder value? Marius Barnett: Definitely. I mean, we're constantly looking at that and seeing where we can do that. It's obviously, as we always said, it's a question of risk where we look at these other transactions. We look at not only the underwriting of the transaction itself that it's a good investment and can return better, that it can also significantly move the needle. We're not here to do -- invest in a high-risk transaction where we can also potentially get a 5% IRR for investor capital. So there's a balance here between looking at risk and capital and deploying it and then making sure also that there is a strategic fit there. There's lots of transactions we've seen into some of these bigger companies that we don't see as a fit. So the key here is duty and as personally as a big shareholder of the company, we're always looking at how we can enhance return and look at these transactions. But yes, it needs to fit the right risk profile and it needs to fit the right strategic profile as well. Gareth Gacetta: Got it. That's really helpful. And I know it's still early days here, but I wanted to touch on the management structure. Can you provide any color on how you're thinking about kind of what this enhancement might mean for SUIG's next phase? Maybe what did the structure look like in the past? And if you could have like a perfect world where you might see things like a year or 2 down the line. Marius Barnett: Look, we're constantly looking at how we enhance the management structure and the right alignment for the company. At this point in time, we can't give an update, but we have made a public announcement that we're looking at it from a longer term. And hopefully, in the next quarter, we can give you some more clarity on that. Operator: Our next question is from Devin Ryan with Citizens Bank. Noah Katz: This is Noah Katz on for Devin. I appreciate all the comments today about the agentic economy. So to start, I think maybe we should focus on your recent investments with both Nof1 and Recursive, positioning yourselves as a strong and ready player within the agentic economy. We're seeing some established platforms introduce AI tools for research and investing. As you think through the next phase of what agentic tools and products could look like and also on your pipeline within agentic finance, where are you seeing the most interesting new products or companies being built? And how will SUI help these businesses in effect, bring that agentic activity onto SUI? Marius Barnett: Yes, thanks. It's a great question. Look, AI is moving extremely quickly. I think we look at it in an amount of announcements every week of advancements and breakthroughs and everything, it's hard to even keep up on an announcement basis on a weekly or weekly. So we're constantly assessing that. I think for us, the key here is having on a piece of paper, a lot of these protocols and these functionalities that they run make a lot of sense to use with blockchain or blockchain rails. Instead of waiting for somebody to build on it is to go out and find the right fitting point so that we can also try to push that agenda into some of these businesses. I think the 2 transactions that we've made are very -- we underwrite them on a transaction basis that they're good investments. And then that they've got the potential for us to bring in SUI, the founders of SUI and look at how we can collaborate with those businesses in the longer term. These are not very short-term plays. They're much longer-term plays and to see how we can integrate those businesses from both sides, from the investment target company investment side and from the SUI blockchain side. I think the key areas for me, albeit, are certainly the payment side of things using agentic agents and how they pay and use wallets on these chains. And when we think about that -- we're no longer thinking of a finite population. The world's population is -- I don't know the exact number, 8 billion or 9 billion or something. We could have hundreds of trillions of agents operating in time that connect with each other and then need a verifiable proof of that they've performed the operation and a place to store the operation. So we think that SUI's integrated stack is super well positioned for this to not only transact but be able to store the transactions with protocols like Walrus there to be able to use privacy on-chain and various functionalities that are all embedded in the stack. So we're very bullish on AI and the potential for it. I think crypto has had many headwinds in the last 9 months or so. I think that's been a combination of various different factors. I think a lot of -- I think there's a lot more stability in my personal view in the market at the moment. I think the Bitcoin miners who all pivoted to data centers, they're all pivoting and they use their -- the CapEx they require, a lot of them used by selling their Bitcoin on their balance sheet to then fund the pivot into AI data centers. I think a large majority of that is out the way. I think that there has been a lot of cleanout. I think we've always seen that crypto, the blockchains and the market is driven a lot also by retail. Retail certainly has moved with AI mania across the world to different parts of the sector. I'm not sure if you saw in the last quarter, there was an article that over 300,000 or 400,000 retail accounts in Korea were liquidated in the tech sector. So those type of things are sectors we're watching from the retail side. But then on the institutional side of the sector, I think it's the most bullish I've seen it in a long, long time. Stablecoin adoption is really progressing. We see some major transactions in that part of the market. On the perps and prediction market, those markets continue to reach all-time highs and volumes continue, and there's a big integration play with blockchains there. Real-world tokenization continues to advance. And then I think that a long-term agentic finance and commerce is a key area to watch. Noah Katz: Yes. I second everything you just said. So -- and I think you -- as a follow-up, I think you kind of went into it a little bit, but it's been argued agents are going to favor infrastructure with low fees, faster settlement, programmable permissions. Can you speak to what SUI offers today and how you differentiate yourselves towards building a platform that will drive more agents to transact? Marius Barnett: Yes. So I think the key thing about the SUI blockchain as you peel away the layers is to start at the bottom. And because of the way that the blockchain is actually structured and the scalability of it, it's got infinite scalability. It's not necessarily about how much -- how many transactions they can handle. As you bring on more capacity in the chain. So the total speed is not prejudice and you've got infinite scalability there within the chain. And that allows you to go to serious amounts of volume very quickly. I think recently in the last quarter, SUI also introduced gasless transactions with stablecoins. So they're actually free. I think when you're looking at payments, one of the key things with payments when you're making payments is understanding what your transaction fees are for a payment and having an exact number for that. SUI's always offered that actually. So you're not dependent on what the block's going to cost. They always solve that problem. But bring the cost down, a lot of these protocols, I see it all over saying there was only this much revenue on the protocol. From that KPI perspective, I personally don't just look -- that's one of the KPI is revenue. But actually, what you want to do is bringing revenue down on-chain, not up. You want to look at how many transactions are actually in place on-chain and what the users, how many users are using it, not the revenues because you want the revenues to be as cheap as possible because that's how you're going to get adoption here. The one thing about stablecoins has always been that they're 24/7, 365, I don't know, 100s of the price of a wire transfer. So business and big business and institutions and users will adopt where you see that sort of efficiency and you can trust it. I think the trust is a big component. I think the second thing from a perspective of the agentic commerce and finance is that you need to be able to store these transactions, you need to be able to verify that they've taken place. You need privacy. And I think what SUI built is a fully integrated stack where this is all embedded in each other. Now that's not to say other chains can't do this. But if you look at some of the other chains, they'll have to -- if you want -- they'll have to integrate it together with different protocols to get all that functionality. And I think what SUI's built is resembling an "AWS stack" here, where it's a fully integrated stack with turnkey solutions for this to take place. Operator: This now concludes our question-and-answer session. Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines, and have a wonderful day. 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Interested in Sui Group Holdings Limited? Here are five stocks we like better. Second-quarter revenue and other income rose to $1.2 million, but Sui Group reported an $18.9 million net loss, driven largely by approximately $16.6 million in non-cash digital-asset and receivables losses tied to SUI price movements and token deployments. The company held approximately 109 million SUI tokens as of Aug. 3, with most staked for an estimated 1.7% annual yield. Its Bluefin lending commitment increased to 6 million SUI, raising participation in certain Bluefin revenue streams to 11% from 5%. Cash and cash equivalents fell to $3.1 million at June 30 from $21.9 million at year-end, although management said cost reductions and the remaining balance provide more than two years of operating runway, excluding treasury and lending returns. Sui Group (NASDAQ:SUIG) reported second-quarter revenue and other income of $1.2 million, up from $948,000 a year earlier, as staking revenue and digital lending interest from its SUI token treasury strategy contributed to results. The company posted a net loss of $18.9 million, or $0.23 per diluted share, compared with net income of approximately $677,000, or $0.11 per diluted share, in the prior-year quarter. Chief Financial Officer Joseph Geraci said the quarter included approximately $16.6 million in non-cash losses on digital assets and receivables. Those losses consisted of $18.9 million in realized losses, partly offset by an approximately $2.3 million unrealized gain. The realized losses included a $14 million loss associated with an additional SUI token loan to Bluefin and a $2.4 million loss related to the return of SUI tokens from Galaxy Digital, acting as the company’s asset manager. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth Geraci said the accounting effects were driven primarily by mark-to-market adjustments tied to changes in the SUI token price and the deployment of digital assets. He said the U.S. GAAP-required treatments did not represent a cash outflow or affect the company’s liquidity. Total operating expenses were $20.1 million in the second quarter, compared with approximately $2,000 a year earlier. Excluding non-cash losses on digital assets and receivables, operating expenses were $3.4 million. Cash and cash equivalents stood at $3.1 million as of June 30, down from $21.9 million at Dec. 31, 2025. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Chairman Marius Barnett said Sui Group held approximately 109 million SUI tokens as of Aug. 3. A significant majority of those holdings were staked, generating estimated annual yield of approximately 1.7%, or roughly 5,300 SUI per day. Based on the closing prices of SUIG common stock and SUI on Aug. 3, the company was trading at an approximate mNAV of 0.72x, he said. The company is also pursuing balance-sheet productivity through strategic lending arrangements. During the quarter, Sui Group lent an additional 4 million SUI tokens to Bluefin, bringing its total commitment to 6 million SUI tokens. In exchange, its participation in certain Bluefin revenues increased to 11% from 5%, payable in SUI. The amended agreement has an initial term through September 2028. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Barnett said the added financing supported Bluefin’s acquisition of Suilend, which he described as the largest lending platform in the SUI ecosystem. He characterized the arrangement as a risk-adjusted financing transaction rather than an equity investment and said the company expects to be able to receive its SUI tokens back at the end of the term if it chooses. During the quarter, Sui Group unwound certain DeFi positions following a reassessment of associated risks and recovered all capital deployed, Barnett said. Management said it is evaluating lending opportunities with market makers and institutional businesses, while favoring structures with stronger counterparties and balance sheets even if they produce lower yields than DeFi activity. Approximately 109 million SUI tokens held as of Aug. 3, according to management. Most token holdings staked, with estimated 1.7% annual yield. Bluefin commitment increased to 6 million SUI tokens. Revenue participation in certain Bluefin revenue increased to 11% from 5%. Approximately 10 million SUI USD stablecoins held as of June 30. Barnett said the SUI network sustained 297,000 transactions per second with 300-millisecond finality, while its developer count reached 1,400 and ranked 10th among chains by GitHub activity. The network surpassed 4.5 billion cumulative transactions, he said. Management also pointed to Coinbase’s introduction of direct staking for eligible users and institutions, as well as the availability of a tokenized private-market strategy from Mubadala Capital on the network. Barnett said Cumberland, Fluid and SwissBorg joined a group of more than 20 participants building on Hashi, a SUI-native mechanism intended to allow Bitcoin to serve as verifiable collateral while remaining on its native chain. Other named participants included BitGo, Bullish, FalconX and Ledger. SUI introduced protocol-level gasless stablecoin transfers during the quarter. Between May 10 and June 10, the network processed approximately $65 billion in stablecoin transfer volume, Barnett said. He described the feature as reducing friction for payments and higher-frequency applications by eliminating the need for users to maintain a separate SUI balance to pay transaction fees. Sui Group invested $3 million through a SAFE in Nof1, an artificial intelligence research company focused on financial-market models. Barnett said Nof1’s Alpha Arena platform was designed to test whether leading AI models could generate returns using real capital and autonomous trading decisions. Initial results showed limitations of general-purpose models in financial markets, he said, and Nof1 is developing models with expanded reasoning, research and multi-step execution capabilities. The company also invested $3 million in Recursive Superintelligence as part of a $650 million financing round that valued the company at more than $4 billion, according to Barnett. Recursive is focused on systems intended to support continuous, self-directed scientific discovery. Barnett said the investments are longer-term efforts and that Sui Group will evaluate whether Nof1’s models could support treasury yield and return generation, subject to testing, oversight and risk controls. He said the company sees payment rails, wallets, transaction verification, storage and privacy as potential areas where blockchain infrastructure may support agentic commerce and finance. Chief Executive Officer Douglas Polinsky said the company received approximately $900,000 of repayments and redemptions from legacy specialty-finance investments during the first half of 2026. As of June 30, its remaining traditional lending portfolio consisted primarily of approximately $2.2 million in non-bank loans measured at fair value. Polinsky said certain borrowers continue to face credit and refinancing challenges, and the company is evaluating collateral, repayment sources and contractual remedies on a loan-by-loan basis. Sui Group does not expect the legacy lending operation to become a significant driver of new originations in the near term, though it may consider selective opportunities with sufficient collateral protection, repayment visibility and risk-adjusted returns. Management also said it has reduced operating costs by about 50% over the past 12 months. Barnett said the company’s cash and cash-equivalents balance provided more than two years of operating-cost runway, excluding any income or returns from treasury yield and loans. The board is continuing to review leadership, governance and organizational needs, he added, following the recent appointment of Kristina Campbell as an independent director and chair of the audit committee. Mill City Ventures III, Ltd. is a principal investment firm specializing investments in debt and equity securities of public and private companies to fund their operations whether its start-up, acquisition, or growth. It primarily focuses on investing in, lending to, and making managerial assistance available to privately held and publicly traded companies. The firm also advises its portfolio companies with regard to finance and operations. It was formerly known as Poker Magic, Inc Mill City Ventures III, Ltd. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Sui Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sui Group Holdings Ltd (NASDAQ:SUIG) maintains a strong cash position with over two years of operating runway, excluding any yield or income from its treasury, providing financial stability. The company is actively enhancing balance sheet productivity through strategic, risk-adjusted lending, such as the expanded Bluefin partnership, which increased revenue share from 5% to 11%. Sui Group Holdings Ltd (NASDAQ:SUIG) is diversifying its treasury strategy by investing in high-conviction themes like Agentic Finance, with investments in N of1 and Recursive Superintelligence to capture future growth. The Sui network's technical capabilities, including 297,000 transactions per second and 300-millisecond finality, position it as a scalable infrastructure for institutional adoption. The company successfully unwound risky DeFi positions during the quarter, recovering all deployed amounts, demonstrating disciplined risk management and a proactive approach to capital preservation. Institutional access to SUI tokens is expanding, evidenced by Coinbase introducing direct staking and the availability of tokenized private market strategies from Mubadala Capital on the network. Sui Group Holdings Ltd (NASDAQ:SUIG) reported a significant net loss of $18.9 million for Q2 2026, driven by $16.6 million in non-cash losses on digital assets, including a $14 million realized loss from the Bluefin loan. Cash and cash equivalents decreased sharply to $3.1 million as of June 30, 2026, down from $21.9 million at the end of 2025, indicating a substantial drawdown in liquid reserves. The legacy specialty finance portfolio continues to face challenges, with borrowers experiencing credit and refinancing difficulties, and the business is not expected to be a significant driver of new originations. The company's treasury is heavily concentrated in SUI tokens, making its financial performance highly susceptible to the volatility and price pressure of the SUI cryptocurrency. Management noted that while opportunities for partnerships exist, many do not meet their strict risk-adjusted criteria, potentially limiting the pipeline for high-yield investments. The company's investments in AI companies like N of1 and Recursive are long-term and speculative, with no guarantee of returns, and the near-term revenue contribution from these ventures is expected to be minimal. Warning! GuruFocus has detected 2 Warning Signs with SUIG. Is SUIG fairly valued? Test your thesis with our free DCF calculator. Q: While the price of SUI is being pressured, what are management's top two or three priorities?A: Marius Burnett, Chairman of the Board, emphasized a disciplined approach to risk, noting the company maintains significant cash on its balance sheet and has not taken on debt, so it is not under pressure to sell SUI or shares to fund operations. The second priority is enhancing yield and return on the balance sheet through risk-adjusted lending, such as the expanded partnership with Bluefin, which yields approximately 5% to 6% with investment optionality. They are also evaluating lending to market makers and institutional lenders to improve returns. Q: What drove the decision to increase the loan to $6 million SUI and raise your revenue share to 11% with Bluefin? What milestones or growth on the Bluefin platform would drive more material contribution?A: Marius Burnett explained that Bluefin acquired SuiLend, the largest lending business on the Sui ecosystem, and the additional loan was part of financing that acquisition. The decision was made on a risk-adjusted basis, as Bluefin's revenues were increasing. He noted that consolidation in these markets is happening more frequently, and the partnership positions Sui Group to benefit from Bluefin's growth as it adds product sets, making it a larger business in the long term. Q: With crypto prices and pressure on SUI, what is the demand for similar partnerships like the Bluefin deal that can result in outsized yield? Has the pressure on SUI resulted in a shrinking pipeline or delays?A: Marius Burnett stated that opportunities exist, but the key is risk management. The company views these as loans, not equity investments, and expects to receive SUI tokens back at the end of the term. While DeFi activity has been reduced due to lower prices and hacks, protocols have tightened security. However, many opportunities do not meet their risk-adjusted criteria, so they prefer institutional lending relationships with market makers and businesses with stronger balance sheets, even if it means slightly lower yields. Q: The Sui blockchain is failing considerably on competing smart contract blockchains like Ethereum and Solana. What can be done to improve the churn of users on chain? Would it be building more dApps, greater adoption of stablecoins, or something else?A: Marius Burnett highlighted that Sui has a focused team and business, with approximately 1,400 developers and ranking in the top 10 blockchains by GitHub activity. He noted stablecoin volumes hit all-time highs, the blockchain maintained 297,000 transactions per second, and work is being put into privacy transactions. He believes the key longer-term driver is Agentic Commerce and Agentic Finance, which are primed to use blockchain for payments, wallets, and rails. He stated it's a question of "not if but when" a breakout app or company will use it, possibly requiring a major AI company to demonstrate a proof case. Q: Can you talk about the OpEx profile this quarter, which improved by nearly $40 million? Where do we sit from a run rate perspective, excluding mark-to-market on digital assets? Where might additional efficiencies be achieved?A: Marius Burnett noted that the company has spent significant time reducing operational costs, bringing them down by about 50% over the last 12 months. There are still areas to reduce costs. Excluding the treasury, the company has over two years of runway from cash and cash equivalents, which excludes any yield or return from the balance sheet or income from loans, indicating a comfortable operating position. Q: How do you think about weighing the cash balance for buybacks of common stock versus investments like N of 1 or Recursive Superintelligence? Could you potentially put excess cash to use elsewhere to generate shareholder value?A: Marius Burnett said the company is constantly evaluating this, but it's a question of risk. They underwrite transactions to ensure they are good investments that can significantly move the needle, avoiding high-risk transactions with low returns. There is a balance between risk, capital deployment, and strategic fit. As a big shareholder, he emphasized the focus on enhancing returns, but investments must fit the right risk and strategic profile. Q: Can you provide any color on how you're thinking about the enhancement of the management structure and what it might mean for SUIG's next phase? What did the structure look like in the past, and where might you see things a year or two down the line?A: Marius Burnett stated that the company is constantly looking at how to enhance the management structure and ensure proper alignment. While no update can be provided at this time, a public announcement has been made that they are evaluating it from a longer-term perspective, and they hope to provide more clarity in the next quarter. Q: With your recent investments in NF1 and Recursive, positioning yourselves as a player within the agentic economy, where are you seeing the most interesting new products or companies being built? How will Sui help these businesses bring agentic activity onto Sui?A: Marius Burnett explained that AI is moving extremely quickly, and the company is constantly assessing advancements. The key is to find the right fitting points to push the agenda of using blockchain rails. The two transactions were underwritten as good investments with potential for collaboration with Sui. He highlighted payments as a key area, where agents will need to pay and use wallets on chains. With potentially hundreds of trillions of agents operating, Sui's integrated stack, including storage via Walrus and privacy features, is well-positioned for this. He also noted that institutional adoption is the most bullish it's been in a long time, with stablecoin adoption progressing and real-world tokenization advancing. Q: It's been argued agents will favor infrastructure with low fees, faster settlement, and programmable permissions. What does Sui offer today, and how do you differentiate yourselves towards building a platform that will drive more agents to transact?A: Marius Burnett detailed that Sui's blockchain has infinite scalability due to its structure, allowing for serious volumes without prejudicing speed. They introduced gasless transactions with stablecoins, making them free, which is crucial for payments. He emphasized that the goal is to bring revenue down on chain to drive adoption, not up. Sui offers a fully integrated stack with storage, verification, and privacy embedded, resembling an "AWS stack" with turnkey solutions, whereas other chains may need to integrate multiple protocols to achieve the same functionality. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, May 7, 2026 at 5 p.m. ET Chief Executive Officer — Marius Barnett President — Stephen Mackintosh Chairman — Douglas Polinsky Chief Financial Officer — Joseph Geraci Marius Barnett: Thank you, and good afternoon, everyone. As many of you know, markets experienced significant dislocation in the fourth quarter of last year. What began as a macro-driven shock, driven in part by unexpected tariff policy developments in October, quickly evolved into a large-scale derivatives unwind. Approximately $19 billion in leveraged crypto positions were liquidated within a very short period of time, driving a sharp repricing across crypto and equity markets. Bitcoin declined materially from its highs, and risk assets more broadly adjusted to tighter liquidity conditions and weaker sentiment—dynamics that carried into the early part of this year. We view this period as a structural reset rather than a breakdown in the system. Unlike prior cycles, particularly 2022, this volatility was not driven by institutional failures or misconduct. We believe the underlying infrastructure performed as intended. Stablecoin markets, now at a record scale of over $300 billion, remain functional, and institutional participation across ETFs, treasury strategies, and regulated derivatives provided a stabilizing presence that has not existed in previous downturns. We believe the long-term use case for digital assets is resilient. Regulatory clarity is improving, institutional engagement is increasing, and the asset class is entering a more mature phase of development. Periods like this tend to reward disciplined capital allocation, conviction in the asset, and a long-term perspective. Our decision to anchor SUI Group Holdings Limited's strategy around the SUI blockchain reflects that mindset. We believe SUI represents a meaningful advancement in blockchain architecture. Its object-centric design and the use of the Move programming language enable parallel transaction execution, allowing the network to process transactions simultaneously rather than sequentially. This results in sub-second finality, horizontal scalability, and performance characteristics that are well suited for real-world applications at scale. These capabilities are already being validated by growing activity across decentralized finance, gaming, artificial intelligence, and stablecoin infrastructure. SUI Group Holdings Limited is uniquely positioned within the ecosystem as the only publicly traded company with an official relationship with the SUI Foundation. That positioning provides differentiated access, credibility, and the ability to deploy capital alongside ecosystem growth. We are not approaching this as passive holders of an asset. We are building an operating platform that participates directly in the expansion of the network. Our objective is to grow SUI per share for our shareholders by actively deploying capital into high-quality opportunities within the ecosystem. This includes supporting leading protocols, providing liquidity, and helping scale infrastructure that generates on-chain economic activity. We have established a scalable framework that aligns our balance sheet with the growth of high-impact protocols and emerging financial infrastructure. The early initiatives we have taken are intended to demonstrate how this model can be expanded over time with an emphasis on consistency, selectivity, and long-term value creation. Bringing this together, the volatility we have seen in recent months has reinforced several key aspects of our strategy. Institutional infrastructure is proving more resilient. On-chain utility continues to grow through cycles. The latest wave of crypto hacks are short- and medium-term headwinds. Disciplined capital deployment during periods of dislocation can create meaningful long-term value. SUI Group Holdings Limited aims to be at the center of that opportunity. We hold a treasury of over 108 million SUI tokens and are actively deploying it within the ecosystem to build partnerships with protocols that are creating durable utility on one of the most scalable blockchain platforms in the market today. We are committed to increasing SUI per share in a disciplined, transparent manner with a long-term orientation that reflects the nature of this asset class. With that, I will turn the call over to Stephen to walk through our first quarter operational performance. Stephen Mackintosh: Thank you, Marius, and good afternoon, everyone. I want to begin with an update on our SUI treasury position. As of 05/04/2026, we hold approximately 108.7 million SUI, including digital asset loans. The majority of this position is actively staked, generating roughly 5,200 SUI per day. Since initiating our treasury strategy in July 2025, staking and lending activity have generated approximately $300,000 in cumulative income. While this base yield is important, we view it as the foundation of our return profile, not the upper bound. Our strategy is focused on deploying capital that can generate returns above the native staking rates. We partner with institutional-quality teams across the SUI ecosystem, structure transactions that produce incremental yield denominated in SUI, and build a portfolio of protocol-linked economics designed to compound alongside network growth. Our work with Bluefin and Ember Protocol, along with our role in launching the SUI–USDE stablecoin infrastructure, are clear examples of this approach in action. Each initiative is designed to outperform passive staking while expanding our participation in the ecosystem's financial layer. The ecosystem itself continues to evolve in meaningful ways. Total value locked on SUI increased significantly. In February, SUI became the fifth digital asset accessible through a spot exchange-traded product, joining Bitcoin and Ethereum in regulated investment vehicles, as well as recently launched trading on the CME. In March, the network introduced Hashi, a Bitcoin-native lending and borrowing protocol developed by [inaudible] Labs with participation from leading institutional players. This initiative is designed to bring institutional-grade BTC collateral into on-chain credit markets. These developments reflect a rapidly maturing ecosystem with increasing institutional relevance. I also want to detail why we believe SUI is particularly well positioned for what may be the next major phase of on-chain activity, which is agentic artificial intelligence. By the end of this year, we expect that a significant majority of enterprises will invest in autonomous software systems capable of planning, transacting, and coordinating with limited human inputs. These systems require a settlement layer with specific characteristics, including sub-second finality, parallel execution, programmable access controls, and reliable stablecoin infrastructure. SUI was designed with these capabilities in mind. We are already seeing practical applications emerge. Autonomous trading systems that operate across decentralized markets require the ability to process concurrent transactions without delay, which is enabled by SUI's parallel execution model. More complex financial workflows, where software agents manage capital allocation and settlement across multiple protocols, require clear state management and predictable execution. SUI's object-centric architecture provides that foundation. In addition, native tools such as SEAL for programmable data access and Walrus for decentralized storage support the memory and coordination requirements of these systems. Stablecoin transfer volume on SUI passed $1 trillion in the first quarter, which highlights the level of settlement activity that these applications can build upon. We believe SUI Group Holdings Limited is positioned at the intersection of these trends. We hold a scale and productive treasury on a network that is rapidly building out both financial and computational infrastructure. We are deploying that treasury into the protocols driving the most meaningful activity within the ecosystem. And we are doing so with a clear objective of compounding SUI per share over time through disciplined and transparent capital allocation. I will now turn the call over to Douglas Polinsky to provide an update on our specialty finance operations. Douglas Polinsky: Thank you, Stephen, and thank you all for joining today's call. Our legacy specialty finance platform continues to serve an important role within SUI Group Holdings Limited, even as our strategic focus has shifted toward digital assets. As we have discussed in prior periods, this business was built on a foundation of selective underwriting and structured lending. We continue to focus on opportunities where we have strong visibility into collateral, cash flow, and borrower quality while maintaining a conservative posture on how we deploy capital. At the same time, the relative contribution of this segment to our overall financial profile has evolved. As our SUI treasury strategy has scaled, digital asset-related activities have become the primary driver of both our balance sheet and our forward-looking strategy. The legacy portfolio remains in place and is now intended as a complementary component rather than the core engine of the business. The specialty finance platform is designed to provide a base level of cash generation while our digital asset strategy offers exposure to higher-growth opportunities within the SUI ecosystem. Though this quarter saw increased credit risk and uncertainty regarding borrower delinquencies, we believe the specialty finance platform can help create a balanced framework as we continue to transition SUI Group Holdings Limited toward a more integrated digital asset platform. While we are optimistic in specialty finance, our strategic center of gravity is firmly aligned with building a differentiated, institutionally oriented digital asset treasury platform anchored to the SUI blockchain. With that, I would like to turn the call over to our Chief Financial Officer, Joseph Geraci, to take you through our financial results. Joseph Geraci: Thank you, Doug. A quick reminder as we review our first quarter financial results: all comparisons and variance commentary refer to the prior-year quarter unless otherwise specified. Due to our strategic shift on 07/31/2025 from our specialty finance business toward blockchain-native treasury management, our historical financial condition and results of operations for the periods presented may not be comparable. Total adjusted revenue, including investment income and other income, for 2026 increased to $1.4 million compared to approximately $778 thousand in 2025. This increase was primarily driven by the generation of staking revenue and digital lending interest income from our SUI digital asset treasury strategy, which had not yet commenced in 2025. Our first quarter 2026 results include approximately $71 million of non-cash losses on digital assets and receivables. The unrealized loss reflects mark-to-market adjustments driven primarily by a decline in the price of SUI during the period. The realized loss relates to the transfer of SUI tokens to Galaxy Digital, in its capacity as our asset manager, resulting in derecognition of the assets and recognition of the difference between carrying value and fair value at the time of transfer. These U.S. GAAP-required accounting treatments reflect changes in estimated fair value and strategic deployment of digital assets and do not represent an actual cash outflow or impact our liquidity. As a result, total operating expenses, including net realized and unrealized (loss) on investments in Q1 2026, were $61.1 million compared to approximately $117 thousand in Q1 2025. Excluding the aforementioned unrealized and realized non-cash loss on digital assets and stock-based compensation, operating expense for 2026 was $5.6 million. Net loss for 2026 was $71 million, or $0.88 per diluted share, compared to net income of approximately [inaudible] and $[inaudible] per diluted share in Q1 2025. As of 03/31/2026, cash and cash equivalents were $15 million compared to $21.9 million as of 12/31/2025. This concludes our prepared remarks. We will now open the call for questions. Operator, back to you. Operator: Thank you. We will now be conducting a question-and-answer session. You may press 2 to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from the line of Brian Kinstlinger with Alliance Global Partners. Please proceed with your question. Analyst: Hi, thanks for taking my questions. First, a couple of numbers questions, if I could. Could you tell us, at the end of the quarter, what cash was, what the first quarter cash used from operations was, and what the share count was? Joseph Geraci: Hi, Brian. The share count including prefunded warrants is approximately 80.9 million shares. Total cash, including all stablecoins, was approximately $15 million. Income from operations was approximately $1.6 million. [inaudible regarding tax and adjustments] Analyst: So when you add back the unrealized losses, it was an income of $1.6 million? Joseph Geraci: The $1.6 million was separate from the unrealized losses. That was income from staking and from the specialty finance business. Analyst: Got it. Okay. And then can you discuss any developments either on Google's AP2 or any other exciting development activity that is either already improving transaction volumes on the SUI blockchain or that you expect to? Stephen Mackintosh: Hi, Brian. I can answer that question. At SUI Live today in Miami, Adeni, the Chief Product Officer of SUI, announced a compelling vision for how SUI is going to be the home of agentic finance. There were a few developments related to your question. First was his keynote introducing payment intents, which is about tackling complex atomic transactions on-chain. This is very different from the crypto UX we have today, where users must choose chains, bridge assets, hold gas, understand swaps, manage slippage, and find various transactions. Payment intents remove this complexity entirely. The inspiration comes from the team's background at Facebook—WhatsApp made messaging free to everyone around the world, and SUI wants to do the same with payments so payments can be free and highly scalable globally. Payment intents are important for agents because you can scale a machine-readable economic layer that deals with atomic transactions through SUI's novel architecture and programmable transaction blocks, and allows for verifiability using a core infrastructure development that was also released in the past couple of weeks called mWOL, which is related to the Walrus protocol. This is targeted at agentic workflows. It lives within the Walrus flagship decentralized data storage protocol built on the SUI network and allows for context and reasoning retention, multi-agent collaboration, and, most importantly, verifiable and programmable data such that agents can use storage to scale complex agentic workflows. I also noticed a number of interesting industry partners, including the Google team, present today. Development is continuing, and it is a very exciting time. Analyst: Last, I know your goal is to increase the yield. Maybe you can provide a pipeline on what kind of deals you are reviewing. Are there dozens? Are there only a couple? And maybe what you hope to exit 2026 with in terms of yield. Stephen Mackintosh: That is an interesting question. First, just on DeFi at the moment, it is well documented there have been over, I believe, 18 DeFi protocols that have had hacks or been penetrated in the last few weeks. Having spoken deeply with the market and the SUI team, this is across different protocols, with major hacks on platforms like Drift, which are EVM-based protocols. There is a notion that hackers and various actors are learning to use AI to identify potential breaches. We took the precaution to remove all our SUI that were in DeFi ecosystems directly onto DeFi protocols out of an abundance of caution. We do not want any losses in pursuit of yield. We have always taken a risk-based approach. We did that over the last few weeks as soon as we saw these hacks coming through. We expect to end the year at approximately 3% to 4%. We had planned to end the year slightly higher, but there have been significant changes in the DeFi ecosystems at the moment, and we are constantly monitoring that from a yield perspective. From an investment perspective, we are constantly looking at different investments. The Bluefin loan that we did was very well structured, and we continue to see an excellent deal out of that loan. We are looking to advance a few other loans on that basis and hope to announce a few things in coming quarters of similar types of transactions. We are also looking at making some equity investments, which will not be material in terms of the greater balance sheet, but we believe they could move the needle. Those relate to the AI sector, which we believe is the greatest unlock for blockchains. Analyst: Great. Thanks, Stephen. Thanks, Marius. Stephen Mackintosh: Thank you. Operator: Our next question comes from the line of Devin Ryan with Citizens Bank. Please proceed with your question. Analyst: Hey, guys, this is Neil Eloff here for Devin. I would love to talk about what you are mentioning on partnerships. Can you give us more insights on how you decide on these partnerships and what goes into that decision-making process? Then beyond the AI target, are there any other specific parts of the chain that you are looking to invest in, whether that be loans or other aspects? Stephen Mackintosh: Sure. First of all, when we look at partnerships, the fundamental is risk—how much risk we are taking, what the risk of losses are, the right risk-reward profile, and how it fits strategically into the business on a long-term basis. On loans, we are constantly looking, but we have taken a risk-based approach. We still have some loans to institutional clients where we are taking counterparty risk that are not in DeFi ecosystems. Those continue to yield well, and with some of them we have parent guarantees where we lower the rate. It is always a risk-based approach, and we continue to look to expand that part of the business. From an equity investment perspective, we are looking at things being built in the ecosystem, and there are four main sectors we are focused on: AI, stablecoins, prediction markets, and real-world tokenization. We think those will be key areas that advance and are core fundamentals of the blockchain sector going forward. In terms of how we invest, we are looking for bold initiatives, not just another protocol. In AI, we are not only investing in AI but also in companies that are AI-centric that we can bring to blockchain and that can build on the blockchain—how they integrate with the blockchain—looking into the future and how that can evolve. We have always thought that, long term, the promise of the sector is that there is not “Web3” and “Web2,” but another technology integrated into the real world together. Analyst: Thanks. Maybe the second question is related to policy. Obviously, the big movement is the Clarity Act. Can you give us thoughts on how you expect that to be a catalyst for the industry and for SUI particularly? Marius Barnett: Steve, do you want to add to that? Stephen Mackintosh: Yes. The industry is anticipating a significant development with Clarity passing the Senate Banking Committee. I believe it is a matter of the industry pulling together and getting it signed while there is an opportunity now, and not having it pushed out into the future. I believe there is substantial institutional participation coming from asset managers and the sell-side investment banks. I experienced that specifically in the form of Bitcoin Hashi. Bitcoin Hashi is an exciting protocol that was introduced this year. It is basically for institutions and qualified custodians to put their Bitcoin to work by using MPC technology and ZK technology on the SUI blockchain, with SUI validators running Bitcoin light clients and nodes, such that stablecoins can be minted against Bitcoin holdings in qualified custody. The amount of institutional participation I have seen for this protocol, which is trying to tackle the fact that only 1% of Bitcoin is used in DeFi through wrapped Bitcoin—which is not only a security issue but also a taxable event—has been notable. The Bitcoin Hashi introduction was well received by the institutional community and continues to be widely anticipated here at SUI Live in Miami. It is a testament to the anticipation that many stakeholders in the industry have around clarity. In regard to price appreciation in the token, following the liquidation cascade last year, and with the Bitcoin price peaking in October and many of the four-year cycle believers, there is some expectation that altcoins and Bitcoin can reprice to the upside at some point in 2026. It might take a couple of months to start building momentum. We are cautiously optimistic, and we look at all the data and signals to make interesting investments from the SUI Group Holdings Limited balance sheet. Analyst: Awesome. Appreciate it, guys. Thanks. Stephen Mackintosh: Thank you. Operator: We have reached the end of the question-and-answer session, and this also concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation. Thank you, and have a great day. Before you buy stock in Sui Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sui Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Sui Group (SUIG) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Friday, Feb. 27, 2026 at 8 a.m. ET Independent Director — Brian Quintenz Chief Investment Officer — Stephen Mackintosh Chief Executive Officer — Douglas Polinsky Chief Financial Officer — Joseph Geraci Marius Barnett: Thank you and good afternoon, everyone. Before diving into the quarter, I would like to briefly share my perspective on the current market environment. As many of you know, I am the Co-Founder of Caritage, a London-based investment firm focused on digital assets and emerging technologies. Over the past several cycles, I have invested across public and private blockchain infrastructure, DeFi protocols, and AI-linked digital systems. Volatility in digital assets is not new to us. Cyclical repricing, liquidity compression, and sharp mark-to-market movement are inherent features of emerging asset classes. What has remained consistent across cycles is the long-term progression of technology. Infrastructure improves, developer ecosystems deepen, institutional participation increases, and regulatory clarity advances. We believe we are operating in that progression today. The digital asset industry is entering a more mature phase. The regulatory engagement in the United States has shifted from uncertainty towards structure. Institutional frameworks around custody, derivatives, and market infrastructure continue to formalize. Policymakers are increasingly focused on integrating digital assets into modern capital markets rather than excluding them. Those developments act as tailwinds not just for the industry broadly, but for institutional-grade public companies like SUI Group Holdings Limited. That context makes the strengthening of our Board particularly important. During the fourth quarter, we appointed former CFTC Commissioner and ex a16z Crypto Global Head of Policy, Brian Quintenz, as an Independent Director. Brian is a recognized leader in financial markets, public policy, and digital asset regulation. He currently serves on the Board of Kalshi, an event-based derivative exchange regulated by the U.S. Commodity Futures Trading Commission, and has advised a range of leading institutions across the digital asset and financial services ecosystems. His presence reinforces SUI Group Holdings Limited’s governance discipline and positions us to engage constructively as regulated frameworks evolve. Against that backdrop, SUI Group Holdings Limited continues to execute on a strategy that is intentionally long term. Our objective is not simply token accumulation. We aim to develop a public market gateway into one of the most technically differentiated layer-one ecosystems. During the quarter, we continued to activate our treasury across multiple verticals. Our partnership with Bluefin is a great example of how we are moving beyond passive capital deployment. Bluefin has scaled into the leading decentralized exchange on Sui with over $4,000,000,000 in monthly trading volume, $82,000,000,000 in cumulative volume, and expanding lending and vault products. Institutional adoption of on-chain derivatives and structured yield products requires performance infrastructure, and Sui’s architecture enables that performance. By aligning with Bluefin, we are directly participating in one of the highest growth segments of on-chain finance. In parallel, we advanced stablecoin infrastructure through the launch of SUI USDE and USDR in collaboration with Athena and the Sui Foundation. Moving from issuance to activation, we seeded $10,000,000 into the Amber-operated SUI USDE vault, a permissionless yield-generating vehicle designed to create durable liquidity for the ecosystem. Stablecoins are foundational to capital formation on-chain. Participating in the infrastructure layer positions SUI Group Holdings Limited to capture value beyond directional exposure. The combination of these initiatives reflects a core principle guiding our strategy: activation compounds value. We are not simply accumulating an idle treasury. We are scaling it, staking it, and strategically deploying it into high-impact ecosystem infrastructure, all within a regulated, publicly traded framework, both for transparency and institutional participation. Our strategy is anchored in a structural shift we see underway across global markets: the convergence of blockchain infrastructure, institutional capital, and real-world financial use cases. Sui’s architecture is engineered for performance at scale, and that matters as decentralized systems move from experimentation to enterprise-grade deployment. SUI Group Holdings Limited is building a position accordingly, not as a short-term trading vehicle, but as a long-duration platform aligned with network growth, ecosystem expansion, and institutional adoption. Our mandate is to translate technological advancement into per-share value for public market investors. I will now turn the call over to Stephen Mackintosh to walk you through our fourth quarter operational updates. Stephen Mackintosh: Thank you, Marius, and good afternoon, everyone. Our capital allocation framework remains disciplined and straightforward: increase SUI per share, activate the balance sheet responsibly, and preserve long-term flexibility. At the protocol level, Sui continues to distinguish itself technically. Its object-centric architecture and new programming language allow for parallel execution, low-latency finality, and composable digital asset logic. That design enables scalable stablecoins, high-frequency on-chain trading, tokenized real-world assets, and AI-integrated applications, all within a single horizontally scalable layer-one environment. Performance characteristics matter when institutional capital enters an ecosystem. Order books, deterministic execution, and low transaction costs are prerequisites for derivatives, lending markets, and structured products. That is where we see Sui positioned structurally well. During the quarter, we continued scaling our treasury and staking substantially all of our holdings, generating approximately 1.7% annualized yield in SUI-denominated rewards. Since the inception of our digital asset treasury strategy in July 2025, we have generated approximately 1,130,000 SUI in total staking rewards and lending income in the Sui ecosystem. This income compounds the treasury over time and reinforces our long-duration orientation. Equally important was the execution of our authorized $50,000,000 share repurchase program. In Q4, we repurchased approximately 7,800,000 shares of our common stock at an average price of $2.20 per share. These repurchases represent approximately 8.8% of SUI Group Holdings Limited’s shares outstanding at the time of the implementation of the repurchases. At the time of execution, our stock was trading at meaningful discounts to its underlying net asset value and SUI per-share exposure. Deploying capital into our own equity under those conditions was a high-conviction allocation decision. It increased SUI per share, improved per-share exposure to staking yield and ecosystem activation strategies, and reflected confidence in the intrinsic value of the platform. Turning to ecosystem activation, our Bluefin partnership provides more than yield enhancement, as Marius mentioned. Bluefin’s perpetual futures platform has grown from roughly $1,000,000,000 in monthly volume to over $4,000,000,000 in monthly volume, with cumulative trading volume exceeding $80,000,000,000 and expanding lending markets. The protocol now integrates spot, perps, lending, and vault infrastructure within a unified trading environment. As derivatives and structured yield strategies expand on Sui, the presence of institutional-grade liquidity venues becomes critical. Our agreement to lend SUI into Bluefin and participate in revenue share aligns us directly with that growth sector. It also provides a return profile differentiated from passive staking. On the stablecoin side, the launch of SUI USDE and USDR marks an important evolution. Athena’s USDE has scaled into one of the fastest-growing dollar-denominated digital assets in history. Bringing that infrastructure natively to Sui expands the ecosystem’s monetary base. Our $10,000,000 anchor deployment into the Amber-operated vault was designed to accelerate liquidity formation and institutional participation. Stablecoin velocity underpins DeFi growth. By pairing treasury exposure with infrastructure participation, we create multiple pathways for value generation: token appreciation, staking yield, protocol revenue share, and liquidity provisioning. As we move into the year ahead, our focus remains on: A) scaling SUI per share through disciplined treasury growth; B) continuing to activate our treasury across staking, lending, derivatives, and stablecoin infrastructure; C) maintaining opportunistic capital allocation, including share repurchases when appropriate; and D) operating with institutional-grade transparency as the only publicly traded company with an official Sui Foundation relationship. The digital asset market will continue to experience volatility. What endures is infrastructure quality, ecosystem adoption, and disciplined capital management. We are positioned at the intersection of all three. I will now turn the call over to Douglas Polinsky, SUI Group Holdings Limited’s Chief Executive Officer, to provide an update on our specialty finance operations. Doug? Douglas Polinsky: Thank you, Stephen, and thank you all for joining today’s call. For those who may be new to SUI Group Holdings Limited, our company was originally built as a specialty finance platform under Mill City Ventures III. We provide short-term, secured, non-bank lending solutions to businesses and individuals seeking flexible capital for real estate, inventory, and other liquidity needs. These loans are typically collateral-backed and structured to generate income through both interest and origination fees. That legacy lending business continues to perform well, and the platform remains profitable and cash generative. Importantly, it provides steady earnings and liquidity that help limit cash burn. It is a disciplined, risk-managed operation that continues to add stability to the broader company. While we remain selective and opportunistic in specialty finance, our strategic center of gravity has shifted. Today, our primary focus is building a differentiated, institutionally aligned digital asset treasury platform anchored to the Sui blockchain, leveraging the strength of our legacy business to support that long-term evolution. I would now like to turn the call over to our Chief Financial Officer, Joseph Geraci, to take you through our financial results. Joe? Joseph Geraci: Thank you, Doug. A quick reminder as we review our fourth quarter financial results: all comparisons and variance commentary refer to the prior-year quarter unless otherwise specified. Due to our strategic shift on 07/31/2025 from our specialty finance business toward blockchain-native treasury management, our historical financial condition and results of operations for the periods presented may not be comparable. Gross revenue and portfolio income for the fourth quarter 2025 increased 179% to $2,400,000 compared to approximately $869,000 in 2024. The increase was primarily driven by the generation of staking revenue and digital lending interest income from our SUI digital asset treasury strategy. Our fourth quarter 2025 results include a $196,100,000 non-cash unrealized and realized loss related to mark-to-market accounting adjustments on our SUI and digital asset loan receivable holdings. Please note this is a U.S. GAAP-required treatment that reflects changes in estimated fair value and does not represent an actual outflow of cash or impact our liquidity. As a result, total operating expenses excluding net realized and unrealized gain on portfolio investments in Q4 2025 were $2,300,000 compared to approximately $960,000 in Q4 2024. Excluding the aforementioned unrealized and realized loss on digital assets and stock-based compensation, operating expenses for the fourth quarter 2025 were $4,800,000. The net loss for the fourth quarter 2025 was $221,800,000, or $5.52 per diluted share, compared to net loss of approximately $91,000, or $0.01 per diluted share, in Q4 2024. The decrease was primarily driven by the aforementioned non-cash unrealized loss on our SUI holdings. As of 12/31/2025, cash and cash equivalents were $21,900,000 compared to $6,000,000 as of 12/31/2024. As of 12/31/2025, SUI Group Holdings Limited held 105,086,451 SUI at a net value of $147,400,000, plus a digital asset loan receivable of 2,961,550 SUI with a net value of $3,600,000. This concludes our prepared remarks. We will now open up for questions from those participating in the call. Operator, back to you. Operator: Thank you. We will now be conducting a question-and-answer session. Our first question comes from the line of Devin Ryan with Citizens Bank. Please proceed with your question. Neil Eloff: Hi, guys. Neil Eloff on here for Devin. My first question is on agentic AI. There has been a lot of news on the topic recently, so I would love to get your thoughts on its role in the blockchain ecosystem. And then if you could also talk a little bit about Sui from an infrastructure point of view. We are thinking that agentic AI can really lift trading volume in the coming years, so how is Sui kind of best positioned from that point of view? Thanks. Stephen Mackintosh: Hi, thank you for the question. This is Stephen Mackintosh, CIO. I think in our view agents will soon likely be responsible for many of the transactions on the Internet, and I think that the blockchain industry will play a critical role as we essentially transition from the mobile era to the cloud era and now to the AI era. I think that Sui is best understood as a coordination layer for user intent. Those intents can be manifested in agents taking actions in commerce from the click of one button and essentially executing all of the necessary complex multi-step actions as a single, indivisible, atomic operation that exists on-chain. I think that we really are at the tipping point of an explosion of agentic commerce. What is really unique about Sui’s architecture is that it allows for the coordination at scale of really high-throughput transactions, specifically through the use of a very unique technology primitive that is on the Sui blockchain called programmable transaction blocks, also known colloquially as PTBs. A core feature of this architecture is that PTBs let developers or AI agents bundle up to thousands of operations—such as transfers, swaps, contract calls, merges, splits of an asset, for example—into one single transaction. Because Sui is one of the only blockchains in the industry that has an object-centric data model, it allows for parallel execution of these bundles that can happen really at an infinite scale, whereas other blockchains are kind of restricted by sequential ordering and capacity limits for block sizes. PTBs allow the Sui blockchain to scale really low latency, high throughput, and also atomically. So I think that it is going to be a really critical use case for the Sui blockchain as we see commerce running on agentic workflows that are really empowered by stablecoins and crypto wallets. In regard to the trading question, Sui recently shipped a big update for DeepBook, which is the limit order book on Sui, and introduced margin trading. I think that we really are kind of walking into a new era of agentic yield generation. There is a company called Beef which was recently launched in the Sui ecosystem that is allowing for agentic yields to be realized on-chain, and I believe there is a huge groundswell of developer activity to build new agentic businesses that will deliver either commerce workflows or yield workflows to users and developers. Neil Eloff: Thanks. And then my next question is kind of on prediction markets. As these contracts kind of begin to evolve into an asset class of their own, what role do you guys think Sui gets to play in this market? Stephen Mackintosh: Thanks. That is a very topical question. I think prediction markets are probably on track to reach something in the order of $1,000,000,000,000 in annual volume by 2030. We have seen explosive growth just in 2026 alone, with averages around $15,000,000,000 to $20,000,000,000 in volume per month, with obviously high spikes of activity around cultural events such as the Super Bowl or elections. I think that right now we have two dominant players in the form of Kalshi and Polymarket, but the market is still really young and really exciting. I believe that the Sui team and the Sui community are really attracting a lot of talented developers who are looking at different types of prediction market consumer propositions that could be regional, for example. They could be focused on emerging markets. Right now, the prediction market space is definitely Western-centric and very much focused on Western politics, and I think that there is a huge world out there, especially in Asian communities, that have very culturally and socially relevant topics and ideas in sports that really do need native prediction markets. I think we at SUI Group Holdings Limited are constantly looking for talented teams and developers who want to capture part of that ever-increasing TAM, and I think that Sui, because of all of the architectural advantages that I mentioned before and the elevated customer experiences, can also be utilized to deliver in prediction markets. Neil Eloff: Very interesting stuff. Thank you, guys, for taking the questions. Operator: Thank you. Our next question comes from the line of Brian Kinstlinger with Alliance Global Partners. Please proceed with your question. Brian Kinstlinger: Great, thanks so much. I just wanted to start with—you mentioned at the end of the year you had $21,900,000 of cash. Can you update us on cash today, as well as what you have had—81,000,000 shares of buyback—is that about roughly what you got? Great. And maybe can you provide some color on the progress for the Google API2 partnership related to development, and do you believe the new agentic AI launches with ClaudeBot and MoteBot—do you think we will see an uptick in development and adoption on Sui fairly soon? Just trying to understand how you see that playing out in timing. And then you touched on the growth of Bluefin. Did that have an impact on the fourth quarter? Are you generating 5% of their revenue starting in November? And I guess what part of that 5,000 daily digital coins is related to that deal? Marius Barnett: Yes, correct. So we did just over 80,000,000 shares in total. That includes all the buybacks we did. We are sitting at approximately $21,000,000. We generate revenue income from the loan book, but then we also generate income from various institutional loans that we have done, including the Bluefin lend. So we forecast that cash number to continuously increase in the absence of using that cash for any investments or transactions. On the Google API2 question, I think Stephen touched on the opportunity set here. We truly believe that payments for all of these bots and agents are meant to be built on blockchain. I think Patrick Collison mentioned in his annual letter about how all of the payments of agents will be done on blockchain, and we believe that is the future here, and that Sui is perfectly positioned for it. In terms of agentic, the Google API2 continues to be worked on between the teams, between Sui and Google, and we believe that there are going to be many more integrations in the longer term in this opportunity set. Regarding Bluefin, yes, I think it is a great example of the type of business we are trying to build here. We actually also can disintermediate the VCs in the market here, where Bluefin were looking to expand and grow their business, and instead of selling equity in their business, we came in and did an institutional lend on a risk-adjusted basis where we get a piece of their fees. At current, we get paid weekly in SUI, and currently that loan is yielding approximately 17% to 18% per annum. Brian Kinstlinger: Wow. Great. I guess my last question, and I will get back in the queue with maybe a few others, is with the decline in cryptocurrency in general, can you speak to demand for similar such business development efforts? Is it mainly with Bluefin? Is there other opportunities in other entities that are looking for similar type deals for bootstrapped Sui? Marius Barnett: Definitely. We are actively in the market looking at these transactions. I think the key for us is risk—how we look at risk on a risk-adjusted basis. We certainly do not want to be waking up in the morning and finding that one of these lends has gone wrong. So what we are looking at is how we manage the risk in these lends and make sure that we are getting the right return profile for it. We are looking at multiple different lends. In this last quarter, although it has not had an impact yet, but will in the long term, we have been doing various other institutional lends to market makers and institutional participants of Sui, where we get parent guarantees. Our long-term targets here over the next 12 to 18 months are to be yielding plus 10% on SUI. Operator: Thank you. Our next question comes from the line of Gareth Gacetta with Cantor Fitzgerald. Please proceed with your question. Gareth Gacetta: Hi, guys. I was hoping you can kind of double click on that last question and sort of the yield-generating opportunities you are looking at outside of traditional staking. So, kind of getting to that 10% yield as a baseline is kind of a good metric, but I am wondering if you can talk about how you are thinking about deploying your treasury balance—whether that be a percentage into staking, a percentage into these DeFi opportunities, or a percentage into lending or something else—how you kind of think about deploying the treasury into these different areas of yield opportunities with respect to that risk like you spoke about? And then I just wanted to touch on some news outlets reporting that Meta is working with a third party to look into stablecoin-based payments. So given that the team at Mysten was originally a part of the team working on Meta’s Libra stablecoin in 2019, could you maybe just provide some color for the people on the call about why that project was ultimately spun out of Meta and then also why a blockchain like Sui might be the best choice for a large institution like Meta looking to integrate blockchain into their systems? Marius Barnett: Yes, it is a great question. From a target perspective, as I said, risk is the key thing first and foremost. So every single opportunity that comes along we look at the risk and then we work with Galaxy, the asset manager of 3G’s, to analyze that risk, whether it is in the DeFi ecosystem or in the general institutional market. Another lend that you would have seen that we did is we were very proud to launch the SUI USDE stablecoin together with Athena. We minted $10,000,000 of that stablecoin. We put it in a vault on Amber, which is built by Byten. So that enhances the Bluefin ecosystem, but then we also are putting that into the DeFi ecosystems. On that lend, currently, we are yielding close to 10% on that $10,000,000 of stablecoins that we have minted. So every single transaction we do, we are looking at a balance of institutional lending and DeFi ecosystem lending. I think the key here is that we get all the right mechanisms in place to monitor these pools and ensure that the risk of it is low and make sure that we get that right return in the right coordination. I do not think that right now going and doing anything wild in the DeFi ecosystems makes sense from a risk-adjusted basis, and we do not see ourselves in that way. So that is why we have done institutional lends to market makers or institutions, where one of the lends we did was $5,000,000 at a 7.5% interest rate, but we have a parent guarantee and we let them go into the DeFi ecosystem and take more risk. So every single transaction we do, we are looking at it on a risk-adjusted basis. Stephen Mackintosh: Yes, sure. On the Meta question, I think the founding story of Sui is one of the most interesting footnotes in crypto’s history so far. Had the Facebook Libra and Diem projects been allowed to succeed—and the reason it did not is because of a previously unfavorable administration and regulatory environment—I do think that the Libra and Diem stablecoin initiative could have been the biggest business in crypto. They could have been bigger than Coinbase; they could have been bigger than Tether potentially, because of the distribution that came with Facebook at the time. At the time the Sui team were building Libra and Diem, it was designed for a network of 3,000,000,000 users, and when the research team, which was headed by Evan Cheng, the CEO of Sui, looked at the state of the tooling in the market, they realized that it was not fit for purpose for the scale they needed to operate at. That caused them to evaluate all of the programming languages and implementations—the use of the Ethereum stack and the EVM, Solana, different languages such as C++—and they found it was not right for moving money on the Internet. That is what allowed the CTO of Mysten and Sui, Sam Blackshear, to actually invent the Move programming language, which is a purpose-built programming language for blockchain that is designed in an object-centric architecture, which allows for parallel transaction processing—not sequential, as you see in an account-based model on Ethereum and Solana—with low-latency, high-throughput scale. In regard to the news, I believe that Meta has been engaging in different RFPs with different blockchain companies. It is unclear yet who will be part of that. But what I would say is that the future of agentic commerce is going to be one that is based around universal interoperability. These agents will be taking economic actions empowered by stablecoins in an interoperable Internet. I think that the scale of commerce could really increase tenfold when you have agentic workflows running, and because of that complexity and the order-of-magnitude increase in the amount of transactions and microtransactions taking place on the Internet, it is only an architecture like Sui that can handle that. I think we are going to see more agentic frameworks being penciled not just by Google’s API2. I think Stripe just announced an agentic framework, we have xAI’s Grok, and I think many more will come. So what I would say is that it is going to be about interoperability, low latency, and scalability, and that is what puts Sui at the heart of this agentic commerce revolution. Gareth Gacetta: Awesome. That is really exciting. Thank you, guys. Operator: And we have reached the end of the question-and-answer session, and we have reached the end of the conference call as well. Thank you for your participation. You may now disconnect your lines at this time. Have a great day. 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This article first appeared on GuruFocus. Release Date: February 26, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sui Group Holdings Ltd (NASDAQ:SUIG) reported a significant increase in gross revenue and portfolio income for Q4 2025, up 179% compared to the previous year, driven by staking revenue and digital lending interest income. The company executed a $50 million share repurchase program, buying back approximately 7.8 million shares, which represented about 8.8% of shares outstanding, indicating confidence in the intrinsic value of the platform. SUIG's partnership with Bluefin has resulted in substantial growth, with Bluefin's trading volume increasing significantly, and SUIG benefiting from a revenue-sharing agreement. The launch of SUI USDE and USDI stablecoins in collaboration with Athena and the SUI Foundation marks an important evolution, enhancing the ecosystem's monetary base and liquidity. The company maintains a disciplined capital allocation framework, focusing on increasing SUI per share, activating the balance sheet responsibly, and preserving long-term flexibility. SUIG reported a net loss of $221.8 million for Q4 2025, primarily driven by a non-cash unrealized loss on SUI holdings, reflecting changes in estimated fair value. Operating expenses for Q4 2025 were significantly higher at $203 million compared to $960,000 in Q4 2024, excluding unrealized losses and stock-based compensation. The digital asset market's inherent volatility poses ongoing risks, which could impact SUIG's financial performance and strategic initiatives. The company's strategic shift from specialty finance to blockchain native treasury management may lead to challenges in maintaining consistent financial performance. Despite the growth in digital asset initiatives, the company faces uncertainties related to regulatory changes and market acceptance of blockchain technologies. Warning! GuruFocus has detected 2 Warning Signs with SUIG. Is SUIG fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss the role of agentic AI in the blockchain ecosystem and how SUI is positioned to benefit from it? A: Steven McIntosh, CIO, explained that agentic AI is expected to drive many internet transactions, with blockchain playing a crucial role as we transition to the AI era. SUI's architecture, particularly its programmable transaction blocks (PTBs), allows for high-throughput transactions, making it well-suited for agentic commerce. This architecture supports scalable, low-latency, and atomic transactions, positioning SUI to capitalize on the growth of agentic commerce and trading volumes. Q: What role does SUI play in the evolving prediction markets? A: Steven McIntosh noted that prediction markets are growing rapidly, with potential to reach $1 trillion in annual volume by 2030. SUI is attracting developers interested in creating diverse prediction market platforms, including those targeting emerging markets. SUI's architecture, which supports high throughput and low latency, is advantageous for delivering superior customer experiences in prediction markets. Q: Can you update us on SUI's cash position and share buybacks? A: Marius Barnett, Chairman, confirmed that SUI has over 80 million shares, including buybacks, and approximately $21 million in cash. The company generates income from its loan book and institutional lending, such as the Bluefin partnership, and expects its cash position to grow barring any new investments or transactions. Q: How is SUI progressing with its Google API2 partnership and agentic AI launches? A: Marius Barnett mentioned ongoing work between SUI and Google on the API2 partnership, with expectations for more integrations in the future. SUI believes blockchain is the future for agent payments, and its architecture is well-positioned to support this evolution. Q: What are the yield-generating opportunities SUI is exploring outside traditional staking? A: Marius Barnett highlighted that SUI is targeting a 10% yield by balancing institutional lending and DeFi ecosystem lending. The company evaluates risk for each opportunity, working with Galaxy to ensure appropriate risk-adjusted returns. SUI has launched the SUI USB stablecoin and is actively participating in DeFi ecosystems to enhance yield. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Transitioned from a legacy specialty finance model to a blockchain-native treasury management strategy focused on the Sui layer-one ecosystem. Performance attribution is driven by shifting from passive token accumulation to active deployment in high-growth infrastructure like decentralized exchanges and stablecoins. The Bluefin partnership exemplifies a move toward revenue-sharing models in on-chain derivatives, which management views as a high-growth segment for institutional capital. Strategic positioning is anchored in Sui's object-centric architecture, which allows for parallel execution and low-latency finality required for enterprise-grade applications. Management emphasizes 'activation compounds value,' utilizing staking and lending to generate yield rather than holding an idle treasury. The appointment of former CFTC Commissioner Brian Quintenz to the Board is intended to strengthen governance and facilitate constructive engagement with evolving U.S. regulatory frameworks. The strategy focuses on scaling SUI per share through disciplined treasury growth and opportunistic share repurchases when trading at a discount to net asset value. Management targets a long-term yield of 10% or more on SUI holdings over the next 12 to 18 months through a mix of staking and institutional lending. Future value generation is dependent on the convergence of blockchain infrastructure with institutional capital and real-world financial use cases. The company plans to continue activating its treasury across staking, lending, derivatives, and stablecoin infrastructure to create multiple value pathways. Guidance assumes continued volatility in digital assets, with a focus on infrastructure quality and ecosystem adoption as the primary long-term drivers. Reported a $196,100,000 non-cash unrealized and realized loss due to U.S. GAAP mark-to-market accounting requirements on digital asset holdings. Executed a $50,000,000 share repurchase program, buying back approximately 7,800,000 shares (8.8% of shares outstanding) at an average price of $2.20. The legacy specialty finance business remains profitable and cash-generative, serving as a stabilizer to limit cash burn during the digital asset transition. Seeded $10,000,000 into a SUI USDE vault to accelerate liquidity formation and participate in the foundational stablecoin infrastructure layer. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management views Sui as a coordination layer for AI agents, utilizing Programmable Transaction Blocks (PTBs) to bundle thousands of operations into single atomic transactions. The object-centric data model allows for parallel execution at scale, which is a prerequisite for the high-throughput demands of agentic commerce. Anticipates an explosion in agentic yield generation and commerce workflows empowered by stablecoins and crypto wallets. The company utilizes a risk-adjusted approach, preferring institutional lends with parent guarantees over high-risk DeFi pools. Current lending to Bluefin is yielding approximately 17% to 18% per annum, paid weekly in SUI. Management aims to disintermediate traditional VCs by providing institutional-grade lending to ecosystem participants in exchange for revenue shares. Management projects prediction markets could reach $1,000,000,000,000 in annual volume by 2030, driven by cultural events and regional expansion. Sui is positioned to capture this TAM by attracting developers focused on non-Western markets and sports-related consumer propositions. The Sui team originated from Meta’s Libra/Diem projects, developing the Move language specifically because existing stacks like Ethereum were unfit for global scale. Management believes only an architecture like Sui can handle the tenfold increase in microtransactions expected from agentic commerce and interoperable internet frameworks. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

This article first appeared on GuruFocus. Gross Revenue: Increased to $2.6 million in Q3 2025 from approximately $711,000 in Q3 2024. Interest and Origination Revenue: Reported approximately $1.6 million, more than double the $711,000 recorded in the same period last year. Unrealized Gains on Investment Portfolio: Recognized $525,000 compared to an unrealized loss of $305,000 in the prior year period. Non-Cash Unrealized Loss: $60.7 million related to mark-to-market accounting adjustments on SUI holdings. Total Operating Expenses: $64.7 million in Q3 2025 compared to approximately $420,000 in Q3 2024. Net Loss: $44.3 million or $0.72 per share diluted in Q3 2025 compared to net income of approximately $464,000 or $0.07 per diluted share in Q3 2024. Cash and Equivalents: $42.7 million as of September 30, 2025, compared to $6 million as of December 31, 2024. SUI Holdings: 105,681,292 SUI with a net value of $344.5 million as of September 30, 2025. Warning! GuruFocus has detected 2 Warning Signs with SUIG. Is SUIG fairly valued? Test your thesis with our free DCF calculator. Release Date: November 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sui Group Holdings Ltd (NASDAQ:SUIG) has established a strategic partnership with the SUI Foundation, positioning itself as the first publicly traded company with an official relationship with the foundation. The company has successfully scaled its holdings to over 100 million SUI tokens, demonstrating significant progress in its digital asset treasury strategy. Sui Group Holdings Ltd (NASDAQ:SUIG) reported a substantial increase in gross revenue and portfolio investment income, reaching $2.6 million in the third quarter of 2025, driven by staking revenue. The company has launched innovative partnerships, such as with Bluefin, to expand institutional participation and generate a 5% revenue share from Bluefin. Sui Group Holdings Ltd (NASDAQ:SUIG) is actively involved in the development of native stablecoins on the SUI blockchain, which are expected to generate cash flows and enhance the company's treasury. Sui Group Holdings Ltd (NASDAQ:SUIG) reported a $60.7 million non-cash unrealized loss related to mark-to-market accounting adjustments on its SUI holdings, impacting net income. The company experienced a net loss of $44.3 million for the third quarter of 2025, primarily due to the aforementioned non-cash unrealized loss. Operating expenses increased significantly to $64.7 million in the third quarter of 2025, compared to $420,000 in the same period of 2024. The company's financial results reflect only two months of activity from its newly implemented SUI Treasury strategy, indicating a period of transition and potential volatility. There is uncertainty regarding the timing and impact of new applications and transaction volumes from the Agentic payment protocol, which could affect future revenue streams. Q: When evaluating deployment of capital to companies like Bluefin or other protocols, what key metrics or criteria do you prioritize? How do you weigh counterparty risk versus returns? And what's the duration of the Bluefin agreement? A: The duration of the Bluefin agreement is three years, with options to extend for additional three-year terms. We prioritize yield, security, and network activity, analyzing approximately $14.5 million per annum of fees, representing a 15% return in SUI. We conducted due diligence with the SUI Foundation, ensuring a robust business supported by the foundation. Q: Can you talk about the application development progress on Google's Agentic payment protocol and when you expect initial apps and transaction volumes? A: The Agentic framework stack is expanding rapidly on SUI. A new company, Beep, has launched an agentic wallet on SUI. The Google partnership involves a consortium of partners, and announcements will be communicated through the SUI Foundation. Stay tuned to official channels for updates on industry partners demonstrating use cases. Q: Can you touch on your native stablecoin launch and how it will generate incremental revenue for investors? A: We plan to launch the stablecoin in the next 2 to 3 weeks with approximately $100 million in liquidity. There are two stablecoins, USDE and USDI, with a revenue share agreement with Athena and the Foundation. The revenue depends on ecosystem usage, and we believe it will be a core driver of accumulating SUI. Q: How do you see AI and blockchain coming together over time, and why is SUI differentiated from other blockchains? A: SUI's object-oriented blockchain architecture allows for limitless programmability, essential for agentic commerce. Unlike account-based models like Ethereum, SUI enables parallel settlements across the network. The SUI stack includes decentralized storage, key encryption, and identity protocols, supporting high-performance blockchain applications. Q: Can you discuss the pipeline of partnerships and where you expect future partnerships to come from? A: We focus on liquidity and infrastructure partnerships, such as Bluefin and Athena stablecoin. We are exploring launching an ETF in the US, which will drive innovation and participation in fees. We have about 5 or 6 partnerships in the pipeline, with the ETF being a priority. For the complete transcript of the earnings call, please refer to the full earnings call transcript.