Hilbert Spends $32M to Buy Enigma Nordic's Crypto-HFT Engine in Earn-Out-Linked Deal

Hilbert Group, a Swedish investment firm, has acquired Enigma Nordic, a high-frequency crypto trading platform, in a deal valued at up to $32 million. The acquisition grants Hilbert full ownership of Enigma's proprietary trading system, which executes market-neutral strategies across global digital asset exchanges. The deal includes $7.5 million in newly issued Hilbert shares at closing, with an additional $17.5 million in performance-based earn-outs according to financial reports.

Enigma Nordic has executed over SEK 50 billion (around $5.4 billion) in trading volume so far in 2025, according to the company. The platform claims its quantitative strategies have delivered a Sharpe ratio exceeding 3.0, a rare benchmark in scalable, market-neutral strategies.

The founders of Enigma, Andereas Friis and Jonas Söderqvist, previously built and listed a digital marketing company Speqta on Sweden's Nasdaq First North exchange.

The acquisition strengthens Hilbert's ability to offer systematic crypto products to institutional investors, with plans to integrate Enigma's platform into its hedge fund offerings and proprietary trading desk as reported. Hilbert Group's asset management arm, Hilbert Capital, launched a Bitcoin-denominated hedge fund with Xapo Bank in late 2024 with $200 million in initial capital as per industry reports. New investment products based on Enigma's strategies are expected to launch in the coming quarters according to market analysis.

Why the Acquisition Was Structured This Way

The performance-linked nature of the acquisition aims to mitigate risks associated with high-frequency trading strategies. These strategies often operate on thin margins and face "alpha decay," where returns diminish as capital scales as financial experts note. To receive the full earn-out, Enigma's strategies must generate $40 million in net income. The shares issued to Enigma's founders are subject to a three-year lock-up per terms of the agreement.

Hilbert CEO Barnali Biswal emphasized the complementary nature of the acquisition. "Enigma brings both cutting-edge technology and an entrepreneurial team with a proven track record of building and scaling public companies," she said in a statement according to company announcements. The integration of Enigma's platform into Hilbert's existing infrastructure is expected to create immediate cost synergies while enabling the firm to scale and distribute these strategies globally.

Risks to the Outlook

Despite the high trading volume, profitability remains uncertain. High-frequency strategies require massive turnover to generate returns, and Enigma's reported $5.4 billion in trading volume does not inherently indicate profitability as market analysts point out. Moreover, the scalability of these strategies is often limited by competition and market dynamics according to industry experts.

Hilbert appears to have addressed these risks through the performance-based structure of the deal. The firm is not solely paying for Enigma's historical performance but is tying a significant portion of the consideration to future results. This aligns the interests of both parties and reduces the burden of proving out the platform's long-term viability as noted in financial analysis.

The acquisition positions Hilbert as one of the few firms capable of offering institutional-grade, systematic products in the crypto market. As the digital asset space matures, institutional investors are increasingly seeking risk-controlled, data-driven exposure. Enigma's strategies, which have historically demonstrated strong performance even during broad market downturns, are seen as a natural fit for Hilbert's offerings.

The deal also highlights a broader trend of increased M&A activity in the crypto space as the market becomes more institutionalized. Top venture capital firms had predicted a more active deal-making landscape this year, driven by regulatory clarity and renewed interest from traditional finance players as industry reports indicate. As Hilbert integrates Enigma into its broader portfolio, investors will be watching for new product launches and performance metrics in the coming quarters.