Adoption of Digital Asset Income Strategy

Tap Global Group PLC

24 August 2026

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE UK MARKET ABUSE REGULATION. WITH THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

24 August 2026

Tap Global Group plc

("Tap", the "Company" or the "Group")

Adoption of Digital Asset Income Strategy

Building the UK's largest income-generating digital asset treasury

Tap Global Group plc (AIM: TAP), the innovative digital finance hub that brings money, payments and crypto settlement services together in a single user-friendly app, announces the adoption of a Digital Asset Income Strategy ("DAIS"): a yield-earning reserve of digital assets, deployed through the Group's established proprietary Tap Earn programme.

Highlights

·    Model proven - the Tap Earn programme has generated annualised gross yield of approximately 7% on committed capital to date including on the Company's own treasury assets.

·    Optimal pricing point - Bitcoin trades more than 30% below its October 2025 all-time high. The Board is establishing the reserve at prices significantly below the peak. Unlike passive accumulation vehicles, many of which now trade below net asset value or have been wound down, the DAIS aims to deploy its assets through the Group's own proprietary Earn product to generate income.

·    Disciplined funding - the DAIS will be funded from the Group's existing cryptoassets (£1.75 million at 30 June 2026), surplus funds generated by the operating business and, from time to time, equity issuances. Any material expansion of the DAIS will be subject shareholder approval.

·    Aligned and accountable - as previously announced, the Board and senior management are locked in over approximately 63% of the issued share capital until March 2029, with open-market sales permanently prohibited thereafter. A monthly DAIS report will be published via RNS setting out the cryptoassets held, movements in and out of the DAIS and the yield generated.

·    Yield reinvestment - the yield will be available to reinvest and/or to cover the costs of the operating business, thereby freeing revenue to reinvest in organic growth and customer acquisition.

Arsen Torosian, Group CEO and Co-Founder, commented:

"The Board believes this is the point in the cycle at which a long-term reserve should be built: accumulating at a significant discount to the peak, with income from the first deployment. This sets Tap apart from most UK digital asset treasury companies which were created in 2025, as Bitcoin climbed towards its October 2025 record high of US$126,198. Passive treasury vehicles that rushed to accumulate in a rising market have underperformed: many trade below the value of their own holdings, and several, including UK-listed vehicles, have been forced into asset sales or wind-downs. With no income, a passive treasury becomes working capital in a drawdown. An income-generating treasury does not.

With a proven income-generating product and a disciplined funding model, Tap aims to build the UK's largest income-generating digital asset treasury alongside an established digital finance platform."

Strategic rationale

Tap enters this strategy from a unique position as an established operating fintech with £3 million in revenues in the last financial year ended 30 June 2026, over 400,000 registered customers, six years of regulated operating history and a live yield engine.

Income generated by the reserve will be applied first to the Group's operating costs. As the reserve grows, the cost base is expected to be progressively covered by treasury income, allowing the revenue generated by the fintech (trading fees, card interchange, FX, subscriptions and the Earn spread) to become available as capital for growth to invest in customer acquisition, product development and expansion into newly regulated markets.

Capital raised under the DAIS is to be deployed into income-generating reserve assets, rather than to be consumed as working capital. The Board's intention is that the Group should not need to raise equity to fund overheads.

How the Group generates yield

There is a global market for borrowing digital assets. Trading firms borrow them to hedge and to take positions; exchanges run funding markets in which leveraged traders pay interest daily; lending pools, both centralised and decentralised, price the demand to borrow openly. Suppliers of capital are paid for providing it. These are markets the Group already operates in and under the DAIS the Group's own reserve is be to put to work in them, through the same infrastructure that runs the Tap Earn programme. The ways in which the Group generates yield include:

·    Staking of eligible proof-of-stake assets, earning the rewards those networks pay for validating transactions;

·    Collateralised lending of digital assets and stablecoins to well-capitalised trading firms and institutions for a fee;

·    Supplying capital to the funding markets of established exchanges, where traders borrowing for leveraged positions pay interest to the suppliers of that capital, secured under the exchange's margin rules;

·    Establishing lending pools, including audited decentralised lending protocols, earning rates set transparently by supply and demand in those markets;

·    Deploying stablecoin balances to earn interest across the venues above, one of the steadiest sources of income in the programme; and

·    Using non-yielding assets such as Bitcoin as collateral to borrow US dollar stablecoins, which are then deployed into the lending strategies above. Loan-to-value is kept conservative, monitored continuously, and managed to avoid liquidation.

Governance

The DAIS will operate under a detailed policy document, designed as a risk management and reporting framework. The policy establishes board oversight and reporting, total investment and transaction limits, leverage limits, deployment limits (to limit concentrations in transaction types and venues), approved counterparties and custody arrangements. The policy requires a minimum level of liquidity which, together with the cash flow generated by the operating business, is sufficient to cover twelve months of operating expenses without relying on disposals. As the operating business is broadly self-funding, this requirement reflects the Group's expected net cash needs and does not require capital to be raised in advance of deployment. Policy amendments require board approval. XTP and any other Board-approved platform tokens are held in a separate, size-limited book subject to independent-director oversight and quarterly review by the Audit and Risk Committee.

Accounting treatment

In Tap's reporting, the income statement will reflect the income the DAIS generates, while the balance sheet will reflect the value of the reserve, allowing investors to assess the operating performance of the DAIS separately from market movements in the assets it holds., as follows:

·    Cryptoassets held under the DAIS will be recognised on the balance sheet as intangible assets under IAS 38 and measured at fair value by reference to active-market prices.

·    Unrealised gains are recognised in other comprehensive income and held in a revaluation reserve within equity and do not pass through the income statement.

·    Unrealised falls in value beyond any previously recognised surplus are charged to the income statement.

·    Realised gains and losses on disposal are recognised in the income statement.

·    Yield generated by deploying the reserve is recognised as operating income as it is earned, presented separately from movements in the value of the reserve.

·    Unrealised gains are not distributable profits under the Companies Act 2006, so reported accounting profit will not equate to distributable profit.

This treatment differs from the US GAAP presentation used by American treasury companies, which take unrealised movements through profit or loss.

Risk factors

The DAIS is intended to generate income from the deployment of digital assets while preserving capital over the medium to long term. There can be no assurance that the strategy will achieve either objective. Income generated may be insufficient to compensate for declines in asset values, operating costs or losses arising from the deployment of capital, and the strategy may adversely affect the Group's financial performance and financial position. A summary of the DAIS policy and these risk factors will be published in the near future and maintained on the Company's website and signposted in future announcements relating to the DAIS. The material risks include:

·    Market risk - digital asset prices are highly volatile and the Company's share price may exhibit correlation with them.

·    Yield risk - yields are variable, not guaranteed, and may fall, including to zero. Gross yields will vary with the market's demand for borrowing digital assets and are expected to reduce as deployed capital scales.

·    Counterparty risk - bilateral and centralised counterparties may default, in which case deployed capital may not be recovered in full or at all.

·    Venue and protocol risk - exchanges may suspend operations or fail. Decentralised protocols carry smart-contract risk: coding errors or exploits, where an attacker abuses a flaw in a protocol's code to extract funds, may result in the loss of capital deployed. Decentralised protocols involve no bilateral counterparty, and the risks of deploying capital to them are addressed under venue and protocol risk.

·    Collateralised borrowing risk - where the Group borrows stablecoins against its digital assets, a severe fall in collateral value could result in part of that collateral being liquidated, crystallising losses. This risk is managed through conservative loan-to-value limits and continuous monitoring.

·    Stablecoin risk - stablecoins used in deployment may lose their peg to the US dollar or become illiquid.

·    Position and issuer risk - certain income-generating positions held by the Group depend on the performance and financing structure of the institutions behind them; they may be unsecured, may have no fixed maturity and may rank behind those institutions' other creditors. Their value can fall materially, and the income they pay may be reduced, deferred or suspended.

·    Custody and security risk - the Group self-custodies its reserves under multi-signature controls. Loss of, or unauthorised access to, signing keys could result in the loss of assets.

·    Liquidity risk - deployed capital may not be immediately recallable, particularly in stressed markets. Customer access to Tap Earn may be restricted in periods of market stress, with withdrawals queued on a rules-based basis.

For further information, please contact:

Tap Global Group plc Arsen Torosian, Chief Executive Officer	via Vigo Consulting
SPARK Advisory Partners Limited (AIM Nominated Adviser) Andrew Emmott / Angus Campbell	+44 (0)20 3368 3555
Cavendish Capital Markets (Joint Broker) Adrian Hadden / George Lawson (Corporate Finance); Dale Bellis / Jason Trill (Sales & Corporate Broking)	+44 (0)20 7220 0500
AlbR Capital (Joint Broker) Gavin Burnell / Jon Belliss / Colin Rowbury	+44 (0)20 7469 0930
Vigo Consulting (Investor Relations) Ben Simons / Amelia Thorn / Georgina Moul	+44 (0)20 7390 0230; tapglobal@vigoconsulting.com

Investor website: investor.tap.global

About Tap Global Group plc

Tap (AIM: TAP) is a regulated crypto-fintech. Through one app, more than 400,000 customers in 25+ countries trade over 70 cryptoassets, spend at 37 million merchant locations through a Mastercard, and earn yield on their holdings through Tap Earn. Tap's European business was the first cryptocurrency fintech approved by Mastercard in Europe. The Group has been licensed by the Gibraltar Financial Services Commission under its DLT framework for six years and intends to apply for authorisation under the UK's incoming cryptoasset regime when applications open in September 2026.

This announcement contains forward-looking statements; actual results may differ materially. Programme figures are point-in-time and unaudited. Yields are variable and not guaranteed. Nothing in this announcement is a profit forecast, and nothing in this announcement constitutes investment advice.

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