Sui Group Holdings Limited Common Stock 2026 Q2 Earnings Call

Thank you, good afternoon, everyone. Digital asset markets remained volatile during the second quarter, but the institutional development of the sector continued to advance. Across custody, staking, stable coins, 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 a period defined principally by technical differentiation and into one where that architecture is supporting increasingly substantive financial activity. For example, the network sustains 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, 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 the 10th and June the 10th, 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 the 3rd, we are trading at an approximate mNAV of 0.72 times. 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%-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 a 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 the 30th, 2026, we have approximately 10 million SUI USD. Stablecoins are essential components of on-chain financial markets because they provide the monetary base for payments, trading, lending, and settlement. Our participation in SUI USD 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 memory 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.

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 the 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 two 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 financial governance will be directly relevant as we continue to scale.