Abaxx Technologies: Shorts Won The Battle But Will Lose The War
The share price and fundamentals continue to diverge... I bet on fundamentals.
Abaxx Technologies (ABXXF) has a market cap of C$930 million. If you are not familiar, this is a company operating a commodity futures exchange out of Singapore.
Abaxx has released its second-quarter results for 2026, and it’s safe to say that everything is improving… except for the share price.
Back in May, the stock reached its peak of C$72 and has fallen to C$24. So, we have seen a decline of roughly 70% from the 52-week highs just a few months ago.
And that means it’s safe to say that short sellers have won this battle, as Viceroy Research and others sought to shake uninformed or anxious retail investors out of their shares. With the stock still being illiquid, and shorts adding fuel to the fire… it’s not very surprising to see how this has gone.
The main thing that surprised me was how many investors have ended up selling and being shaken out of a stock that’s about to hit a massive growth curve. But it is a great time to be a buyer if you missed out on the previous run-up.
Unfortunately, it’s not great for optics that Abaxx also had to refile its financials because of several reporting errors. Refiling documents isn’t uncommon; we are all human, and everyone makes mistakes.
Shorts will, of course, act like this should be a company-ending scandal. Because it financially benefits them if everyone thinks it is.
You can see a full analysis of the latest financials here, if you wish.
Ultimately, all of this will blow over, and the fundamentals will eventually drive us to new highs. And if you’re following the growth trajectory of this company, you’ll see why…
Growth
Diving into the numbers… management is confident they will achieve 50-100% H/H growth, and that will comfortably hit their goal of 1 million average daily volumes (ADV) in 1-3 years.
Q2 2026 total exchange volume was 888k contracts, up 276% from 236k in Q1. Average daily volume was 14k contracts, also up 276%.
Average daily open interest reached 641, up 129% from 280 in Q1.
H1 2026 volume was 1.1 million contracts up 613% when compared to the second half of 2025. Average daily volume was up 648%. Average daily open interest was up 28%.
July volume alone came in at 785k contracts, up 127% over June. Average daily volume hit 34k contracts, up 134% over the entire Q2 average.
Now, Joe Raia, the exchange’s President, made it clear that we should not expect July’s growth as typical as growth will fluctuate. But the clear trend every year will be substantial growth in contract volumes as the exchange’s ecosystem continues to expand.
When looking at individual contracts, precious metals account for the vast majority of trading and growth right now…
Gold Singapore futures did roughly 630k contracts in Q2, up 287% from Q1.
Silver Singapore futures launched on May 22nd and traded 107k contracts before the end of the quarter, an ADV of 4k.
LNG, combining the Gulf of Mexico and North Pacific Asia contracts, reached 121k contracts in Q2, up 102%.
So, they have several contracts that are growing rapidly, likely going to be profitable in the next 1-2 years if they want to be.
Currently, they are spending any revenue they generate on liquidity incentives and rebates for market makers or traders to jumpstart their markets. A typical practice you see whenever exchanges in the industry are launching new contracts.
Josh Crumb, the CEO, noted that it’s possible they will reach financial breakeven before they need to raise more capital again. This last raise in May might be their last, unless they want growth capital for tech investments.
With all of this said, I haven’t even mentioned the growth of their exchange ecosystem yet…
2 settlement banks.
22 interdealer brokers.
11 software vendors offering access.
Up to 7 clearing firms now, including Yongan.
Over 100+ trading firms using the exchange.
5 data distributors (LSEG and Bloomberg being major additions).
This doesn’t include the 10 clearing firms, 4 ISVs, a tier-one bank clearing member coming online, etc in the pipeline.
Then, to add on top of that… new contracts coming in platinum, palladium, electricity, crude, environmental, agriculture, base, and battery metals.
And they’re going to 24/7 trading in 2027. And launching options, perpetuals, tokenized treasuries, funds, etc.
I just can’t imagine seeing this level of contract growth and market participant/contract pipeline… and being bearish.
Financials
Revenue in the quarter from transaction and clearing fees was up to C$4.5 million, with essentially all of it going back to liquidity-related credit. While this ratio will lower over time, it is possible we never see the total end of trading incentives. All exchanges still offer them at differing rates.
Total operating expenses have increased by approximately 60% compared to 2025. From C$12 million to C$19 million. Costs will increase minimally as the exchange is now running on all cylinders, but line items like salaries will rise as the tech side of the business expands.
Cash and equivalents on June 30th were C$95 million, with total assets of C$162 million.
C$51 million in total liabilities, mostly accounting for required holding funds or margin deposits for the exchange… as well as C$24 million in convertible debentures.
Opex is covered by cash on hand for at least a year, if not longer. Crumb said on the investor call he expects opex to flatten from here rather than continue stepping up, because the Q2 jump reflected a one-time build of the commercial team.
It’s also worth mentioning the company authorized a normal course issuer bid (share buybacks) for up to 400k shares, about 1% of the float, with an automatic securities purchase plan.
With no need to dilute for over a year, and substantial growth in all vectors of the business… shorts had their fun, but momentum will shift back in Abaxx’s favor soon enough.
Disclaimer: I’m long Abaxx Technologies. I hold an equity position that was acquired at an average share price of $5.51. I was not compensated by the company to create this post.
The owner of Green Investing is not a licensed investment professional. Nothing produced under the Green Investing brand should be construed as investment advice. This content is made for entertainment and educational purposes. Do your own research.
I have been buying under $20(US) though my share cost average is under $10. I’m averaging up.