Why the Market Looked at SMX Differently in 2025, and Shouldn't Overlook It in 2026

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NEW YORK, NY / ACCESS Newswire / January 23, 2026 / Those new to SMX (NASDAQ:SMX) may be focused primarily on its impressive 2025 rally. That's fine from an investor perspective. Gains of over 4,200% should attract attention. But the real focus should be on why it happened. And just as importantly, whether that rally history can repeat.

So why did SMX's market cap soar from roughly $5 million in November to about $199 million as of January 22nd?

The most likely reason is that investors finally responded to what SMX actually is. A unique company. One that can do things no other known company can.

SMX molecularly marks materials, including metals, plastics, textiles, and even liquids, with an immutable marker that follows those items from manufacturing through end of life. Better said, it creates a digital passport that ensures provenance, authenticity, and integrity at every stage of the supply chain.

That capability is what caused the excitement.

Some have compared its potential impact to that of breakthrough consumer technologies that permanently changed everyday life less than 20 years ago. Different markets, yes. But the reach could prove just as significant.

Not Speculation, Not Slogans Just Proof.

Proof of that momentum is already showing through a series of high-impact engagements. Collaborations with Singapore's A*STAR around circularity. Work with Dubai's DMCC to monitor precious metals markets. And several additional initiatives that sent a clear signal.

With that, investors began to see SMX for what it can be. A structural game-changer for sustainability, accountability, and global supply chain circularity. Not in theory, but in execution, with verifiable authentication at its core.

What the platform needed next was another critical component. A digital market layer capable of monetizing participation and facilitating rapid adoption of its Plastic Cycle Token (PCT).

That's the context Kraken enters. Not as the headline. As the reinforcement.

Institutional Systems Don't Tolerate Loose Ends

Unlike market investors, large enterprises, regulators, and global partners don't make significant commitments based on whether a platform is innovative. That's usually assumed. Instead, they ask whether it's defensible, resilient, and deployable inside environments already burdened with risk, compliance, and operational complexity.

SMX's Kraken-aligned treasury strategy addresses those concerns directly.

Institutions operate under a different level of scrutiny. Their systems must withstand audits, cyber risk, and regulatory oversight without constant intervention. SMX already addresses material truth. Kraken extends that capability by strengthening the conditions under which that truth operates.

By reinforcing execution, permissions, and system integrity, Kraken addresses the questions institutions ask before committing. Can this platform scale? Can it integrate cleanly? Can it operate without introducing new risk?

The answer to each is yes. And that answer matters just as much as any feature set.

Sequencing Matters in Institutional Infrastructure

Those new to SMX should start here. SMX didn't arrive at this valuation point by accident.

It first established molecular-level verification. Digital identity followed through its Plastic Cycle Token (PCT). Secure execution was added once the platform reached the point where scale and institutional integration demanded it.

That sequence matters.

Institutions don't adopt platforms that are still assembling their foundation. They adopt platforms, like SMX's, that look designed for oversight from the start. Keep in mind that SMX was already securing major deals throughout 2025. Its Kraken-based treasury strategy announcement last week strengthens that posture. But it's important not to miss the point.

The posture was already there. So, no, Kraken doesn't redefine SMX. It supports the trajectory SMX was already on.

Kraken Reduces Friction Where Institutions Feel It Most

One of the most significant barriers to institutional adoption isn't cost. It's disruption.

Kraken enables SMX to integrate into enterprise environments without forcing counterparties to redesign their own security frameworks. That lowers adoption barriers and shortens evaluation cycles. Its PCT plays a central role in that process.

For institutions, that's decisive.

It allows verification capabilities to be adopted without operational upheaval, which is often the difference between approval and delay. When adoption is smoother, confidence builds faster. And that confidence can become a compounding value driver.

Institutional Confidence Compounds Over Time

Once institutions adopt infrastructure, they rarely replace it quickly. Rhetorically speaking, why should they, especially when trust compounds, switching costs rise, and systems become embedded.

Kraken adds the digital component that supports the long-term dynamic by making the platform more resilient under scale, complexity, and oversight. That's not flashy. It's foundational.

As verification requirements expand and enforcement increases, institutions will continue to gravitate toward platforms that can meet those demands without drama. SMX is positioning itself for that moment, with Kraken supporting digital market readiness rather than redefining purpose.

Readiness Is the Real Adoption Catalyst

Yes, a lot of attention has been given to the Kraken headline from last week. But here's the reality. Kraken doesn't make SMX louder. It makes it more deployable.

That added fuel, centered on suitability rather than hype, is what drives institutional adoption. Platforms that look ready before demand becomes unavoidable are the ones institutions trust when the stakes rise. Those that have already proven functionality across the board are the ones that get adopted.

In that respect, SMX's résumé stands apart.

Kraken's role doesn't change the direction SMX is heading. It ensures the platform can carry the weight when institutions lean in further in 2026.

SMX's work helped catapult the company to historic highs. While the share price has retreated, the market cap has remained notable. At roughly $199 million today, more than 4,000% higher than November levels, it's fair to say investors are still engaged.

And with prices again attractive to the retail class, more may decide to add SMX to their 2026 itinerary.

About SMX

As global businesses face new and complex challenges relating to carbon neutrality and meeting new governmental and regional regulations and standards, SMX is able to offer players along the value chain access to its marking, tracking, measuring and digital platform technology to transition more successfully to a low-carbon economy.

Forward-Looking Statements

The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example: matters relating to the Company's fight against abusive and possibly illegal trading tactics against the Company's stock; successful launch and implementation of SMX's joint projects with manufacturers and other supply chain participants of steel, rubber and other materials; changes in SMX's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; SMX's ability to develop and launch new products and services, including its planned Plastic Cycle Token; SMX's ability to successfully and efficiently integrate future expansion plans and opportunities; SMX's ability to grow its business in a cost-effective manner; SMX's product development timeline and estimated research and development costs; the implementation, market acceptance and success of SMX's business model; developments and projections relating to SMX's competitors and industry; and SMX's approach and goals with respect to technology. These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company's shares on Nasdaq; changes in applicable laws or regulations; any lingering effects of the COVID-19 pandemic on SMX's business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which SMX operates; the risk that SMX and its current and future collaborators are unable to successfully develop and commercialize SMX's products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that SMX is unable to secure or protect its intellectual property; the possibility that SMX may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in SMX's filings from time to time with the Securities and Exchange Commission.

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SMX GENERAL ENQUIRIES

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Contact: Jeremy Murphy/ [email protected]

SOURCE: SMX (Security Matters) Public Limited