said it is seeing several investments in the decentralised finance space “gaining huge traction and recognition” as the market catches up with technological advances.
In final results for the year ended 31 December 2019, the blockchain investment firm said it has been continuously investing in start-up projects launching new disruptive systems using blockchain and decentralised technologies through this market volatility cycle.
‘We continued to add new investments to the portfolio, knowing full well that, with the increased number of decentralised platforms finding real product market fit, the markets would soon return to a more favourable outlook,’ the company told investors this morning.
Managing Directors, George McDonaugh and Keld Van Schreven, said 2019 saw “a major step change” for KR1 as it became income generating with £241,633 in income from its staking activities mainly as a result of its participation in the blockchain Cosmos Network.
Staking activities are becoming more important, the group said, with portfolio projects such as Polkadot, Dfinity and Ethereum ‘turning on their Proof-of-Stake blockchains.’
In addition, the company said it undertook active advisory work with one of its portfolio companies, Vega Protocol, resulting in revenues of £180,748 in their native token.
Shares in KR1 have gradually risen over the past two weeks and opened at 6.3p today.
The group said all these activities combined have made 2019 “another successful year” resulting in an unrealised profit of £2.0m reflecting the gain in fair value on our digital assets investments with a realised profit on disposal of digital assets of £693,665 for KR1.
“In March 2020, Bitcoin and all crypto assets saw massive volatility, mirroring the wider market panic on the expected economic damage from Covid19, but subsequently weathered the storm,” said McDonaugh and Van Schreven.
They added that KR1 experienced no operational or structural portfolio issues during these times, “as the Company is not exposed to unnecessary risks and has a modest cost-basis.”
Both MDs highlighted that Bitcoin is posed to take its place next to gold as a safe haven asset, signalling a potentially very positive outcome for KR1 which holds a solid position in both leading cryptocurrencies, Bitcoin (“BTC”) and Ethereum (“ETH”), in its portfolio.
The group said it has seen further encouraging developments, such as the strong price surge in Ethereum, and that it sees itself as in an excellent position to take full advantage of this.
‘While maximising staking yields and the utilization of our portfolio assets has become an important area for us, our focus has always been and continues to be researching the bleeding edge of this transformative ecosystem, backing the brightest and best teams to help build out the new decentralised world of Web 3.0 and beyond,’ added KR1.
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