Hilbert Group (HILB), a Swedish investment company specializing in algorithmic trading in the crypto market, has acquired high-frequency trading platform Enigma Nordic in a deal valued at $32 million.
The move will give Hilbert access to Enigma’s proprietary trading system that implements market-neutral strategies across global crypto exchanges, the companies said in a press release.
Enigma says it has handled over SEK 50 billion (approximately $5.4 billion) in trading volume by 2025 and reports a Sharpe ratio of over 3.0, a performance the company claims is “rarely achieved by globally scalable, market-neutral digital asset strategies.”
A trading volume of $5.4 billion indicates high activity, but is not inherently indicative of profitability. High-frequency strategies often require large volumes of sales to generate thin profits. Additionally, these strategies often face so-called “alpha decay,” where returns decline over time due to inefficiencies in capital deployment.
Hilbert Group appears to be mitigating these risks through performance-based clauses. The transaction includes $7.5 million in newly issued Hilbert stock and up to $17.5 million in performance-based benefits, of which $10 million will be in cash.
To receive the full benefit, Enigma’s strategy must generate a net profit of $40 million. Shares issued to Enigma’s founders are subject to a three-year lock-up.
Barnali Biswal, CEO of Hilbert, said the acquisition strengthens the company’s ability to offer systematic crypto products to institutional investors.
“Enigma brings both cutting-edge technology and a team of entrepreneurs with a proven track record of building and scaling publicly traded companies,” Biswal said. “Their market-neutral strategy delivers very high Sharpe ratios and is a natural complement to our proprietary quantitative platform.”
Hilbert plans to integrate the platform into hedge fund products and his own trading desk, with new investment products expected to launch in the coming quarters.
Hilbert Capital, the asset management arm of Hilbert Group, launched a Bitcoin-denominated hedge fund last year with an initial capital of $200 million.
