Radiance November Investor Update — Why This Dip Matters More Than It Looks

For professional investors only. Target returns are aspirational and not guaranteed. Past performance is not indicative of future results.

The Market Context: A Tough Month for Bitcoin, and an Even Tougher Month for NAV

November continued the volatility that began in early Q4. Bitcoin retraced materially following the October 10 event, finishing the month sharply lower.
Because the Radiance Multi-Strategy Fund is fully exposed to Bitcoin and synthetically covers its calls using perpetual futures, price declines of this magnitude temporarily amplify mark-to-market drawdowns.

As outlined in our latest investor briefing, the Fund’s estimated November result is –39%, driven by:

• Increased futures exposure during deep pullbacks (20%+), which increases synthetic long exposure above 2.0x
• A Bitcoin price decline that exceeded typical monthly downside expectations
• A deliberate risk framework designed to avoid liquidation while positioning the portfolio to recover aggressively when the market rebounds

While these drawdowns are uncomfortable, they are not new to the strategy. They represent the other side of the flywheel that makes large compounding possible. Greg Galton, our CIO explains it best:

Why the BESt Strategy Is Purpose-Built for Moments Like This

The Bitcoin Extraction Strategy (BESt), used within Radiance, is engineered to accumulate additional Bitcoin during periods of high volatility, precisely the environments where passive vehicles (ETFs, cold storage, exchange accounts) simply decline in value.

• Radiance has generated 45+% more Bitcoin year-to-date, despite market turbulence
• The strategy targets 5–7% additional BTC per month (aspirational, not guaranteed)
• The compounding benefit increases when BTC trades lower, not just higher
• The structure is designed to recover within months, not years, following steep drawdowns

This is the critical distinction between Radiance and passive Bitcoin exposure:

NAV follows sentiment.
Radiance compounds its power.

Why Dips Create Forward Opportunity (Even Though Futures Reduce Equity in a Falling Market)

When Bitcoin sells off sharply, the Fund’s perpetual futures, which synthetically increase BTC exposure, also decline in value. This reduces working equity and causes NAV to fall faster than Bitcoin itself.

However, this behaviour is fully anticipated and actively hedged within the strategy. Radiance manages this risk through a set of disciplined controls that are designed to protect capital during deep pullbacks:

• Dynamic de-risking: As volatility spikes or momentum turns negative, exposure is actively reduced to protect against liquidation events.

• Structured hedging: Protective puts and spread structures are used to limit downside acceleration and stabilise working equity.

• Margin protection rules: The strategy enforces strict margin utilisation ceilings, ensuring the portfolio remains resilient even when BTC experiences extreme moves.

• Real-time monitoring: Risk is monitored daily with specific parameters that dictate when the strategy de-gears, when it re-engages, and how exposure is rebuilt.

These controls are designed to ensure that while NAV may fall sharply during extreme moves, as is expected for any strategy with long BTC exposure, the Fund avoids the catastrophic scenario of liquidation, allowing it to recover and grow when markets normalise.

In previous drawdown periods, these safeguards have allowed the strategy to reset, re-establish exposure at more favourable levels, and participate strongly in subsequent recoveries.

However, these periods create the strongest forward opportunity for the strategy: volatility rises, premiums widen, and exposure can be rebuilt at lower levels. When the market stabilises or begins to recover, the increased BTC exposure allows the Fund to recover more quickly than passive holdings. Historically, these deep dips have set the stage for strong subsequent compounding, which is why we describe them as opportunities rather than setbacks.

This month’s fact sheet emphasises a key point: sharp market declines increase long-term compounding potential.

That’s because:

• Income generated in Bitcoin buys more BTC when prices are lower
• Premium extraction is more lucrative during volatility spikes
• Synthetic long exposure amplifies the upside when BTC recovers from depressed levels
• The compounding effect accelerates when the base BTC holdings increase during dips

This dynamic is counterintuitive but vital to the strategy’s design:

Dips are uncomfortable for NAV in the short term,
but extremely valuable for long-term BTC accumulation.

Radiance is not designed to “smooth” the BTC price.
It is designed to multiply Bitcoin holdings across cycles, regardless of short-term sentiment.

Structural Strength: Institutional Execution in a Volatile Asset Class

The November Fact Sheet also reinforces why Radiance is positioned as a differentiated alternative for sophisticated Bitcoin holders:

• Institutional-grade governance and risk management
• Clear separation between yield generation and speculative trading
• Daily risk oversight and strict liquidation-avoidance controls
• Independent administration, Big Four audit, Fireblocks custody
• Cayman-domiciled structure suitable for global allocators

In summary, November was a challenging month for Bitcoin and, by extension, for the Fund’s NAV. The decline in BTC, combined with elevated synthetic exposure via perpetual futures, resulted in a deeper drawdown than the underlying asset. This behaviour is expected in periods where the Fund increases exposure to position for long-term accumulation.

Importantly, this environment is one the strategy is designed to manage. Radiance employs disciplined hedging, margin-protection protocols, and dynamic de-risking rules to mitigate the risk of liquidation and preserve the ability to recover as markets stabilise. These controls are central to maintaining resilience through deep pullbacks.

Historically, periods of elevated volatility and sharp price dislocations have set the stage for stronger forward premium extraction as the market normalises. While no outcome is guaranteed, the Fund remains aligned with its long-term objective: to grow Bitcoin holdings through disciplined option-premium extraction, full upside participation, and a robust institutional risk framework. As sentiment improves and volatility recalibrates, the strategy is positioned to resume its compounding trajectory.

Radiance continues to serve long-term Bitcoin holders seeking a professionally managed, income-generating structure with uncapped upside exposure. The focus remains unchanged: disciplined execution, prudent risk management, and compounding BTC over time., compounding asset, without capping upside.

For Professional Investors Only

This blog is a marketing communication intended for wholesale, accredited, or institutional investors. It is not investment advice. Target returns are aspirational and not guaranteed. Past performance is not indicative of future results. Crypto assets are highly volatile and investors may lose capital. For full details, please refer to the Offering Documents.

Download the latest fact sheet: https://portal.am/factsheet