Abaxx is trading at liquidation value of $25 USD with ATB securities is giving it a blue sky valuation of $2500 should they get success in just 5 of their current contracts. This does not account for their future contract launches (like Silver which was just launched with Crude contract on horizon and many more) and it doesn't account for their MarketOS sales which I believe could make it worth significantly more.
ATB Securities Suggesting Upwards of $2500
Some of you complained first time I posted that it was already tripled. Well now you can get it at a steep discount to their last raise about a month ago at \~$37 USD after it peaked already at \~$50 USD. No complaints now.
2 Months ago. You can now get it on Robinhood due to TSX listing
8 months ago. Never Change WSB.
Liquidation Value
Abaxx is a globally licensed exchange and clearinghouse building physically delivered futures benchmark contracts. This means they have direct regulated access to basically the entire globe such as China, USA, EU, and UK. Given the surge in demand due to prediction markets. Josh (Abaxx CEO) indicated companies were looking to buy ones with a budget of $750-1 billion at the biggest futures event of the year in Boca.
Demand sits at $750m to $1 billion
Understandably, don't take just his word for it. The last time a Singapore Exchange (SMX) that was similar was back in 2013 for $200 million inflation adjusted. But they did not have direct USA access and Abaxx's volumes are currently double when sold. Abaxx also has a cloud native infrastructure which supports high scalability or the significant onboarding Abaxx currently has.
Abaxx has 11 ISVs connected, 5 in pipeline. 8 clearing firms connected (including China starting on Monday) and 13 in pipeline. Keep in mind, Clearing Firms take large amounts of commitments. LIkely in the millions worth as well as committing to reserve funds. And they also have 22 brokers with 10 in pipeline. Most of these should be completed in the next 6 months. As trading surges, it is likely we see more onboarding so I am projecting this time next year we are about half of the connectivity of the major exchanges like ICE and CME.
Additionally Abaxx is currently onboarding to Bloomberg (you can search it, not done yet) and they just finished onboarding to LSEG.
I propose given all of this, they are easily valued at $750+ million confirming Josh's claim. This suggests they are trading at near liquidation value today. Very limited and protected downside.
Then you have the wildcard asset of their iron ore deposits. Abaxx did a reverse merger of NML back in 2020 which owns one of the worlds biggest green iron ore deposits. NPV value back in 2014 at full build out was $7.3–7.6 billion inflation adjusted. Typically you would see a spin out company here where a mining company pays for all of the mine building and Abaxx contributes the deposits. This could be worth $$200–600 million to Abaxx shareholders. It's highly illiquid and needs a strong iron ore market which lately has been steadily growing in price.
The Future Valuations
I have presented my case that I believe Abaxx is trading at liquidation. Now I will present my case how you get all of the future valuation basically for free as a call option that does not expire.
Benchmark commodity contracts are worth ALOT of money. Brent and WTI are worth billions due to the fees collected on trading. It's a money printing machine with 70% margins because competition is difficult.