High-frequency trading acquisition aims to expand institutional-grade crypto products
Hilbert Group has completed a $32 million acquisition of Enigma Nordic, a high-frequency cryptocurrency trading firm, in a move designed to strengthen its quantitative trading capabilities and broaden its institutional offerings. The transaction gives Hilbert access to Enigma’s proprietary trading infrastructure and market-neutral strategies, signaling growing consolidation within the crypto trading sector.
Details of the acquisition
The deal structure combines equity and performance-based incentives. Hilbert issued $7.5 million in newly created shares, alongside earn-outs of up to $17.5 million, of which $10 million is allocated in cash. The earn-outs are conditional and will only be paid if Enigma’s trading strategies generate $40 million in net income, aligning long-term performance with compensation. Shares issued to Enigma’s founders are subject to a three-year lock-up period, reinforcing commitment to sustained growth.
Trading performance and strategy
Enigma Nordic reported handling more than 50 billion Swedish krona (approximately $5.4 billion) in trading volume during 2025, reflecting significant activity across global crypto exchanges. The firm has also cited a Sharpe ratio above 3.0, a level considered exceptional for scalable, market-neutral digital asset strategies. However, high trading volume alone does not guarantee profitability, as high-frequency models often operate on thin margins and face risks such as alpha decay over time.
The performance-based earn-out structure directly addresses these risks by tying compensation to realized net income rather than trading activity alone.
Strategic impact
Hilbert plans to integrate Enigma’s technology into its hedge fund products and proprietary trading desk. The acquisition strengthens Hilbert’s ability to deliver systematic, data-driven crypto strategies tailored to institutional investors. New investment products leveraging the combined platforms are expected to launch in the coming quarters, further expanding Hilbert’s role in the evolving digital asset market.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.