C1 FUND INC. — Q4 2025 SHAREHOLDER LETTER

A Disciplined Beginning in a Noisy Market

Executive Summary

So far this quarter, we deployed capital into foundational digital asset infrastructure companies, including Kraken, Ripple, Chainalysis, Alchemy, Consensys and one other company which has filed confidentially for an IPO, advancing our strategy of owning the rails rather than participating in the noise surrounding digital finance. Our thesis remains constant: exchanges, settlement systems, compliance engines, staking frameworks and developer platforms form the operating layers on which the digital economy runs.

Throughout the period, we maintained strict valuation discipline, performed comprehensive diligence and operated with the rigor expected of a public fund. As the sector enters a more institutional era defined by regulation, transparency and infrastructure-led growth, C1 Fund is positioned to capture long-term value from durable, globally integrated operators whose relevance compounds over time.

To Our Shareholders,

The first months of our life as a public fund proved the value of pace. Not speed. Not spectacle. Pace. A deliberate and disciplined cadence in a sector where sentiment still oscillates between exuberance and exhaustion. When we chose to take C1 Fund public, the decision was rooted in intention rather than momentum. We did not go public to join the noise; we went public to build a vehicle capable of rising above it.

C1 Fund began with a clear aim: broaden access to opportunities that, for decades, sat behind institutional walls and accreditation thresholds. The most durable value creation in digital finance has emerged not from speculation, but from the private markets where late-stage technology companies build the operating systems that financial systems depend on. Historically, these opportunities were available only to investors writing seven-figure checks and accepting multi-year lockups. Our structure changes that dynamic entirely. Whether an investor deploys $100 or $10,000, they gain fractional access to the infrastructure companies shaping the digital economy in a public, liquid wrapper.

This is not a workaround. It is structural innovation.

Understanding What You Own

It is essential to be explicit about what C1 Fund represents. We are not a trading product. We are not a derivative of token volatility. We are not structured to chase market sentiment. We target the operators: global technology companies building exchanges, compliance systems, developer platforms, settlement rails, staking infrastructure and analytics engines. These companies are the plumbing of digital finance.

Their value is not driven by hype cycles. It is driven by engineering excellence, regulatory alignment, operational resilience and integration into global financial systems. As more institutions adopt digital-native infrastructure, these companies do not simply grow; they become unavoidable.

The Portfolio: Owning the Infrastructure Layer

Our early investment activity focused on building exposure across the core layers of digital finance. By the end of the year, we expect to have deployed approximately $30 million into companies selected for regulatory maturity, operational resilience and scalability independent of short-term sentiment. Two investments, Kraken and Ripple, illustrate our strategy clearly.

Kraken represents the exchange layer: a long-standing, compliance-focused liquidity venue with one of the most respected security records in the sector. Through multiple cycles, Kraken has distinguished itself by favoring discipline over speed. Its evolution into a broader multi-asset marketplace reinforces its role in global price discovery and the scale of its user base underscores its relevance as infrastructure.

Ripple anchors the settlement layer, modernizing cross-border financial flows with a technology stack engineered for speed, precision and compliance. Ripple is not about token speculation. It is about replacing antiquated systems with real-time settlement rails capable of serving global enterprises and regulated institutions.

Alongside these positions, Figment provides the staking and yield infrastructure supporting institutional participation in proof-of-stake networks. Chainalysis delivers the compliance and analytics frameworks relied upon by governments, exchanges and financial institutions worldwide. Alchemy powers the developer tooling enabling thousands of applications to be built, deployed and scaled. Consensys anchors the portfolio’s exposure to core Ethereum infrastructure, combining developer tooling, enterprise blockchain solutions and user-facing platforms such as MetaMask to support global participation in decentralized applications.

These companies do not sit in isolation. They represent a vertically aligned architecture: settlement, exchange, staking, compliance and developer infrastructure with each enabling a different function of the same operating system. Our strategy is not to predict which layer will grow fastest in a given cycle. Our strategy is to own the rails that allow the system itself to function.

Discipline, Transparency and NAV

Net Asset Value is a fundamental reference point for any public fund and it is our responsibility to report NAV with precision, verification and regulatory alignment. The companies we hold are private, late-stage operators and valuing these assets requires comprehensive models, third-party validation and exacting review. It cannot be rushed and it cannot be approximated.

Our audited NAV will be released by 2^nd March, 2026. Until that time, we will continue sharing all information that can responsibly be disclosed: deployed capital, position sizing where appropriate and public valuation markers from completed fundraising rounds. Transparency remains a core value for C1, but transparency must always be grounded in accuracy.

On Value and Market Positioning

In the early stages of most closed-end funds, it is common for market price to diverge from intrinsic value. Investors learn the product before they fully price the product. Today, C1 Fund trades at a discount to the value of its underlying holdings. That discount reflects early-stage adoption dynamics rather than the quality or trajectory of the portfolio.

Market discounts do not close through messaging alone. They close through consistent reporting, disciplined execution and verifiable NAV. They close as investors understand that we represent access to durable infrastructure rather than exposure to speculative momentum. They close as familiarity builds and as the market recognizes the difference between token volatility and the stability of the companies building the operating system beneath it.

Our responsibility is not to chase the market’s interpretation. Our responsibility is to operate with the steadiness that allows long-term value to be realized.

The Road Ahead: 2026

The opening months of C1 Fund reinforce the foundational truth of our strategy: compounding belongs to infrastructure. Digital finance is entering its institutional era, an era in which regulation, compliance, operational resilience and technological clarity matter more than hype or novelty. The companies within our portfolio have already survived the attrition phase that eliminates most early-stage ventures. They operate globally. They serve regulated markets. They generate real revenue. They deliver essential services that persist regardless of sentiment.

As we move into 2026, our focus remains consistent. We will continue deploying capital into companies with proven infrastructure, global relevance and long-term demand. We will continue strengthening our reporting framework. We will continue communicating with precision and clarity. And we will continue honoring our mandate: to provide investors with access to the companies building the operating system of digital finance.

Markets will fluctuate. Narratives will shift. Cycles will contract and expand. But infrastructure compounds. It deepens, integrates and becomes indispensable. That is where the long arc of value creation resides and that is where C1 Fund is positioned.

Thank you for your continued trust during these foundational months. We are still early and the structure, discipline and mission of C1 Fund remain firmly in place.

Sincerely,

Dr. Najam Kidwai
Co-Founder & Chief Executive Officer