Pires Investments increases stake in Pluto Digital Assets
The investment firm focused on next generation technology said it continues to see progress amongst its investments in the digital assets sector, particularly in Pluto. As a result, it has subscribed for a further 23,301,633 new ordinary shares in Pluto Digital Assets.
Technology firm Pluto connects Web 3.0 decentralised technologies to the global economy by investing in, incubating and advising digital asset projects based on decentralised technologies, decentralised finance and networks such as Ethereum and Polkadot.
The consideration for the Subscription comprises Pires’ remaining interest in YOP tokens, namely 400,000 unlocked YOP tokens and 1.5 million locked YOP tokens, as well as the 1,765 ordinary shares that it holds in technology platform developer DeTech Studio Limited.
The consideration for its investment in DeTech, a recently incorporated company with the objective of developing a decentralised finance technology platform called YOP, was US$0.2m; however, as part of the transaction, Pires also received 4 million YOP tokens.
The Group’s rationale for using Pires' DeTech shares and YOP tokens for the Subscription is to give itself a larger shareholding in Pluto, ‘to diversify risk as Pluto will be invested in a wider portfolio of digital assets (rather than a single new cryptocurrency token) and to bring increased focus to the Company's investments in the digital assets sector.’
Pires said this will also provide an opportunity for earlier liquidity as it is understood that Pluto is pursuing a stock market listing, whereas the 1.5m YOP tokens being used as part of the subscription consideration are subject to lock-in arrangements of between 10 and 16 months.
Pires’ subscription is alongside a larger fundraise by Pluto amounting to in excess of £20 million from both new and existing investors. Following the Subscription and Fundraise, Pires Investments will hold 32,518,876 shares in Pluto, representing a 6.4% shareholding.
Pluto has made good progress since its launch, Pires noted, with the crypto venture capital and technology firm having already expanded its portfolio to include 16 different digital assets including, inter alia, BTC (Bitcoin), ETH (Ethereum), AAVE (Aave) and DOT (Polkadot).
Pluto said it has already delivered returns from its activities in digital assets such as DOT, UMB and VTX while it is ‘progressively building out its management and operating team.’
"We are delighted with the progress of Pluto to date, the level of demand from new investors and the opportunity to better focus our investments in the very exciting and rapidly growing digital assets sector,” said Peter Redmond, Chairman of Pires Investments.
He added, “We are pleased to take a larger investment in this fast-growing company which certainly seems to have caught the imagination of investors since its launch."
Shares in Pires Investments have seen a near three-fold increase since the start of 2021 with shares jumping in value since it announced its investment in Pluto back in January 2021.
Both the progress of Pluto to date and the level of demand from new investors have led to Pires’ increased investment today as it takes the opportunity to deploy further funds into a technology business operating in ‘the very exciting and fast-growing digital assets sector.’
Reasons to Follow
Pires Investments (PIRI) is an investment company providing investors with access to a portfolio of next generation technology businesses with significant growth potential.
The Company is focused on building an investment portfolio of high-tech businesses across areas such as Artificial Intelligence ("AI"), Internet of Things ("IoT"), Cyber Security, Machine Learning, Augmented Reality and Virtual Reality ("AR/VR") and Big Data.
The Board believes its portfolio demonstrates evidence of traction and the potential for exponential growth, due to increasing global demand for development in these sectors.
In December 2020, Pires announced its new venture into decentralised finance through a share subscription agreement into .DeTech Studio Limited developing a decentralised finance technology platform ("YOP"), providing Pires with a 15% equity interest in DeTech.
The company told investors that it believes decentralised finance technology platforms offer opportunities for growth and that it could capture a significant portion of the DeFi market.
Follow News & Updates from Pires Investments here:
Disclaimer & Declaration of Interest
The information, investment views and recommendations in this article are provided for general information purposes only. Nothing in this article should be construed as a solicitation to buy or sell any financial product relating to any companies under discussion or to engage in or refrain from doing so or engaging in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the writer but no responsibility is accepted for actions based on such opinions or comments. Vox Markets may receive payment from companies mentioned for enhanced profiling or publication presence. The writer may or may not hold investments in the companies under discussion.