Hilbert Group (HILB), a Swedish investment firm specializing in algorithmic trading within the cryptocurrency market, has acquired the high-frequency trading platform Enigma Nordic in a $32 million deal.

The move grants Hilbert access to Enigma’s proprietary trading system, which executes market-neutral strategies across global cryptocurrency exchanges, the companies stated in a press release.

Enigma said it has handled over 50 billion Swedish krona (around $5.4 billion) in trading volume so far in 2025 and reports a Sharpe ratio above 3.0, a performance the firm claims is “rarely achieved in scalable, market-neutral digital asset strategies globally.”

While the $5.4 billion trading volume indicates high activity, it does not inherently signal profitability. High-frequency strategies often require massive turnover to generate thin margins. On top of that, these strategies often face what’s known as “alpha decay,” where returns diminish over time over capital deployment inefficiencies.

Hilbert Group appears to be mitigating these risks through performance-based clauses. The deal includes $7.5 million in newly issued Hilbert shares and up to $17.5 million in performance-based earn-outs, with $10 million of those being in cash.

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.

Hilbert CEO Barnali Biswal said the acquisition strengthens the firm’s ability to offer systematic crypto products to institutional investors.

"Enigma brings both cutting-edge technology and an entrepreneurial team with a proven track record of building and scaling public companies,” Biswal said. “Their market-neutral strategies have delivered very high Sharpe ratios and naturally complement our own quantitative platform.”

Hilbert plans to integrate the platform into its hedge fund offerings and proprietary trading desk, with new investment products expected to launch in the coming quarters.

Hilbert Group’s asset management arm, Hilbert Capital, began managing a bitcoin-denominated hedge fund last year with an initial capital of $200 million.