XA Investments Reports Record Growth in 2025 in its Fourth Quarter 2025 Market Update

Rhea-AI Summary

XA Investments (MCN) published its Fourth Quarter 2025 Market Update on non-listed closed-end funds, reporting the interval and tender offer fund market reached 308 funds and $233 billion in net assets at year-end.

Key figures: 158 interval funds (57% of assets, $156.1B), 150 tender offer funds ($119.9B), 67 new funds launched in 2025 (vs 50 in 2024), and $61 billion of market-wide net asset growth in 2025. The report notes 159 unique sponsors (up 13) and that 36% of 2025 launches were by new sponsors. XAI flagged slower Q4 launches and an SEC registration backlog tied to a government shutdown, and forecast continued growth and more evergreen specialty structures in 2026.

Positive

• Market size reached $233 billion in net assets at year-end 2025
• Market-wide net assets increased by $61 billion in 2025
• 67 new funds launched in 2025, up from 50 in 2024
• 159 unique sponsors in market, a net increase of 13 sponsors since 2024
• 158 interval funds represent 57% of market assets ($156.1B)

Negative

• Q4 2025 fund registrations and launches were slower than expected due to a government shutdown backlog
• Newly launched funds spent about seven months on average in the SEC registration process
• Top 20 funds accounted for 44% of total net flows, indicating concentration among market leaders

News Market Reaction

-2.53%

5 alerts

-2.53% News Effect

-$20M Valuation Impact

$789M Market Cap

0.3x Rel. Volume

On the day this news was published, BTBT declined 2.53%, reflecting a moderate negative market reaction. Our momentum scanner triggered 5 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $20M from the company's valuation, bringing the market cap to $789M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Active AI servers: 256 servers AI contract revenue: $4.3 million Service credit issued: $579,000 +5 more

8 metrics

Active AI servers 256 servers Actively generating revenue as of August 31, 2024

AI contract revenue $4.3 million Unaudited revenue from initial Bit Digital AI contract in August 2024

Service credit issued $579,000 Credit for downtime during equipment upgrade, issued in August 2024

BTC produced 53.4 BTC Digital asset production in August 2024, 11.7% decrease vs prior month

Active hash rate 2.43 EH/s Hash rate as of August 31, 2024

BTC treasury value $40.2 million Fair market value of 682.4 BTC on August 31, 2024

ETH treasury value $68.7 million Fair market value of 27,331.0 ETH on August 31, 2024

Total liquidity $216.5 million Cash, cash equivalents, USDC, and digital assets as of August 31, 2024

Market Reality Check

Price: $1.50 Vol: Volume 48,715 is below th...

low vol

$1.50 Last Close

Volume Volume 48,715 is below the 20-day average of 100,956 (pre-news). low

Technical Price 6.075 is trading slightly above the 200-day MA at 6.04 before this news.

Peers on Argus

Peers showed mixed moves pre-news: BCV -0.7%, HEQ -0.72%, while DMO +0.36%, MPA ...

Peers showed mixed moves pre-news: BCV -0.7%, HEQ -0.72%, while DMO +0.36%, MPA +0.8%, VFL +0.88%. No momentum scanner signals, suggesting stock-specific trading.

Historical Context

5 past events · Latest: Jan 08 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 08	Index launch	Positive	+0.3%	Launch of INTVL-C credit-focused interval fund index.
Jan 06	Platform access	Positive	+1.0%	OCTIX made available on Charles Schwab platform.
Jan 02	Distribution declaration	Neutral	-0.3%	Unchanged $0.060 monthly distribution announcement.
Dec 29	Index announcement	Positive	-0.2%	Planned launch of INTVL-C alternative credit benchmark.
Dec 01	Distribution declaration	Positive	-0.8%	Monthly $0.060 distribution with unchanged amount.

Pattern Detected

Recent news has generally been positive with small price moves; some index launches and distribution announcements saw modest divergences.

Recent Company History

Over the last few months, MCN-related headlines focused on index development and income distributions. On Dec 1, 2025 and Jan 2, 2026, the fund declared unchanged monthly distributions of $0.060 per share, with modest negative price reactions of -0.84% and -0.33%. XA Investments also expanded its XAI Interval Fund Index suite, announcing and then launching the INTVL-C credit sub-index, tied to > $79 billion in net assets, with small mixed price impacts between -0.17% and +0.33%. Platform availability news for OCTIX on Schwab saw a +0.99% move.

Market Pulse Summary

This announcement details Bit Digital’s August 2024 operations, including $4.3 million in AI contrac...

Analysis

This announcement details Bit Digital’s August 2024 operations, including $4.3 million in AI contract revenue, a 53.4 BTC production level, and total liquidity of $216.5 million. For MCN, the key context is that pre-news trading sat near the 200-day moving average with light volume and mixed sector peers. Investors monitoring this space may focus on how digital-asset infrastructure trends intersect with income and index products, while also tracking future MCN distribution decisions and index-related developments.

Key Terms

btc, eth, hash rate, proof-of-stake, +4 more

8 terms

btc technical

"In August 2024, the Company produced 53.4 BTC, an 11.7% decrease..."

BTC is the common ticker and shorthand for Bitcoin, a digital currency that exists on a decentralized computer network instead of being issued by a government or bank. Investors care about BTC because its market price signals demand for that asset, can swing sharply like a volatile commodity, and can influence portfolio risk, market sentiment, and companies with exposure to cryptocurrencies—similar to how oil prices affect energy markets.

eth technical

"Treasury holdings of BTC and ETH were 682.4 and 27,331.0..."

ETH is the native digital currency of the Ethereum blockchain, used to pay for transactions and to run programs on that network. For investors it matters because owning ETH is both a way to access and use the platform (like buying fuel to run an app) and a speculative asset whose price reflects demand for the network, changes to its supply rules, and broader crypto market sentiment.

hash rate technical

"The Company's active hash rate was approximately 2.43 EH/s..."

Hash rate is the measure of how quickly a computer system can process complex calculations needed to verify transactions and add new blocks to a blockchain. It can be thought of as the speed at which a miner's equipment works, similar to how a car's horsepower indicates its power. Higher hash rates generally mean more mining power and greater chances of earning rewards, making it an important indicator of the network's security and competitiveness.

proof-of-stake technical

"Proof-of-Stake Highlights The Company had approximately 21,568 ETH..."

A proof-of-stake system is a way a cryptocurrency network decides who can add new records to its shared ledger by selecting participants based on how many tokens they hold and commit as collateral, rather than on who can solve hard math puzzles. For investors this matters because it affects returns and risks — staked tokens can earn steady fees or rewards like interest, while the system’s energy use, speed, and rules for slashing or locking tokens influence value, liquidity, and regulatory scrutiny.

apy financial

"Bit Digital earned a blended APY of approximately 3.1%..."

APY, or Annual Percentage Yield, shows how much money an investment or savings account can earn in a year, taking into account both the interest rate and how often that interest is added. Think of it like a snowball growing as it rolls downhill: the more frequently the snowball gains new snow, the faster it gets bigger. For investors, APY helps compare different options to see which one offers the best return over time.

btc equivalent technical

"The BTC equivalent[1] of our digital asset holdings as of August 31, 2024..."

BTC equivalent means the amount of Bitcoin that equals the value of a different asset, payment or balance when converted at the current exchange rate. For investors it provides a common measure to compare holdings or transactions denominated in dollars, other currencies, or tokens—like converting prices to a single unit so you can see how much Bitcoin exposure you really have. It’s useful for assessing performance, risk and portfolio allocation in crypto terms.

usdc technical

"total liquidity (defined as cash and cash equivalents, USDC, and the fair market value..."

USDC is a digital token designed to hold the same value as one U.S. dollar, acting like a digital dollar you can use on the internet. Investors care because it provides a quick, low-cost way to move and store value, reduce price swings common in cryptocurrencies, and park cash in trading or payments without converting to traditional bank deposits, though its safety depends on how and where the backing dollars are held.

staking technical

"The Company had approximately 21,568 ETH actively staked in native staking protocols..."

Staking is the practice of locking up digital tokens to help run a blockchain network in return for rewards, similar to leaving money in a time deposit that pays interest while it’s unavailable. It matters to investors because staking can generate regular income and affect a token’s circulating supply and price, but it also ties up assets and can carry risks like lock-up periods, reduced liquidity, or technical and platform failures.

AI-generated analysis. Not financial advice.

Interval and Tender Offer Fund Market Reaches New Milestones, See Interval Fund Dominance and Shift Toward Greater Investor Accessibility

CHICAGO, Jan. 15, 2026 (GLOBE NEWSWIRE) -- XA Investments LLC (“XAI”), an alternative investment management and consulting firm, announced the publication of its latest research report, the XAI Non-Listed Closed-End Fund Fourth Quarter 2025 Market Update. The report covers interval fund market trends and recent developments, with expanded coverage of the XAI Interval Fund Awards recognizing notable funds and managers across the market in 2025.

“The interval and tender offer fund market has reached a new peak with 308 funds and $233 billion in net assets, showing the increased popularity of interval and tender offer funds in recent years,” stated Kimberly Flynn, the president of XAI. “The market’s trajectory was positive throughout 2025 and is expected to remain strong into 2026,” she added.

XAI’s market update is a comprehensive research report detailing current market trends and industry highlights. The non-listed closed-end fund (CEF) market includes all interval and tender offer funds. The report highlights new fund sponsors entering the interval fund market and gives a comprehensive market update.

“For 2026, XAI predicts strong demand for evergreen products, the market becoming more accessible to investors, and increased specialization in the fund strategies sponsors are launching,” Flynn said. Additionally, “XAI anticipates more Specialty Structures, continuously offered evergreen fund that offer periodic liquidity and are designed to be sold into the private wealth marketplace, to be launched, allowing the market to continue at an accelerated pace of growth in 2026.”

The non-listed CEF market includes 158 interval funds which comprise 57% of the total managed assets at $156.1 billion and 150 tender offer funds which comprise the other 43% with $119.9 billion in total managed assets. In 2025, 67 new funds entered the market, representing an increase of 17 funds compared to the 50 funds launched in 2024. Market-wide net assets increased $61 billion in 2025.

In total, there are 159 unique fund sponsors in the interval and tender offer fund space, which is an increase of 13 new fund sponsors from 146 unique sponsors at the end of 2024. The market has continued to diversify with 36% of the funds launched in 2025 sponsored by new entrants. Some of these new fund sponsors in the non-listed CEF market include Blue Owl, Coatue, and Adams Street.

“The number of funds in the SEC registration process decreased by three funds from 53 at the end of 2024 to 50 at the end of 2025. This shows the consistent momentum of the market from fund sponsors,” Flynn noted. “Both new fund registrations and fund launches were slower than expected in Q4 2025 with the recent government shutdown creating a backlog of funds,” she added. Newly launched non-listed CEFs spent around seven months in the SEC registration process, with the fund’s asset class continuing to be the main driver of time spent in the SEC review process. Specialty / Other funds were the quickest to launch in 2025, at 137 days on average spent in registration.

There are 55 fund sponsors that have two or more interval and/or tender offer funds currently in the market. Additionally, there are 21 funds in the Securities and Exchange Commission (SEC) registration process from fund sponsors looking to launch another fund and 29 sponsors looking to launch their first fund. Only two fund sponsors have more than one fund on the top 20 funds (three Cliffwater funds and two StepStone funds), displaying the diversity in the interval fund market. In aggregate, the top 20 largest interval and tender offer funds accounted for 44% of total net flows including many of the market leaders such as the Cliffwater Corporate Lending Fund, Partners Group Private Equity, LLC, and ACAP Strategic Fund.

Many interval and tender offer funds delivered strong results in 2025 with positive net flows and large increases in fund assets. Some of these include the Cliffwater Corporate Lending Fund, which led the interval fund market in net flows during the first three quarters of 2025, as well as the StepStone Private Credit Income Fund and Coatue Innovative Strategies Fund, which experienced significant asset growth following their launches. The new XAI Interval Fund Awards also recognized innovative offerings from managers such as Oaktree and Blue Owl, along with top-performing funds across manager size categories.

According to Flynn, “Each Interval Fund Award given out is based on the extensive research XAI has done throughout 2025. These awards are a valuable insight into the growth and performance of the interval fund market as they are backed by our data, keeping the titles impartial.”

For more information on the interval fund market and to read our full quarterly report on non-listed CEFs, please visit the CEF Market research page linked here and click ‘Subscribe’ for access to XA Investments’ online research portal and pricing information. In addition, please contact info@xainvestments.com or 888-903-3358 with questions.

About XA Investments
XA Investments LLC (“XAI”) is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund, respectively the XAI Octagon Floating Rate & Alternative Income Trust, the XAI Madison Equity Premium Income Fund, and the Octagon XAI CLO Income Fund. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including product development and market research, marketing and fund management. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. For more information, please visit www.xainvestments.com.

CONTACT:	Kim Shepherd
	kshepherd@xainvestments.com
	312-623-5123

^{Sources: XA Investments; CEFData.com; SEC Filings.
Notes: All information as of 12/31/2025 unless otherwise noted. Total managed assets is inclusive of leverage. The non-listed CEF market is subject to lags in reporting and limited data availability. Data such as asset levels, net flows, and performance are delayed up to 90 days after quarter-end and are not available for all funds. All data in the report is the most current available. Please contact our team if you have any questions about the non-listed CEF marketplace.}

FAQ

How large was the interval and tender offer fund market reported by XA Investments for 2025 (MCN)?

XA Investments reported the market at 308 funds with $233 billion in net assets at year-end 2025.

How many new interval and tender offer funds launched in 2025 according to XA Investments (MCN)?

The report states 67 new funds launched in 2025, up from 50 in 2024.

What was the 2025 net asset growth for the non-listed closed-end fund market in XA Investments' update (MCN)?

Market-wide net assets increased by $61 billion during 2025.

Did XA Investments note any regulatory or timing issues affecting fund launches in Q4 2025 (MCN)?

Yes; the update cites a government shutdown that created an SEC registration backlog and slowed Q4 launches.

What does XA Investments forecast for interval and tender offer funds in 2026 (MCN)?

XAI expects continued growth, greater investor accessibility, and more evergreen specialty structures offering periodic liquidity in 2026.