KR1 (KR1 ) has described the six month period to 30 June 2021 as “very positive” after the digital asset investment firm reported an increase of +1,208% of its net current assets from 1H20.
In 1H21, net current assets were reported at £105.7m, an increase of 1,208% on 1H20 and 179% on FY20. Staking revenue was £5.47m, a 7,373% rise on 1H20 and +558% on FY20.
Commenting on the assets, George McDonaugh and Keld van Schreven, Managing Directors of KR1 said: “The first half of the year was very positive for the Company, our long-term strategic commitment to digital assets and the crypto space continues to serve us well.”
They commented, “We have also recently seen a major acceleration in the adoption of decentralised technologies, ensuring a full pipeline of innovative and disruptive projects.”
The Company said growing revenue streams from ‘Proof-of-Stake’ networks were primarily coming from Polkadot and Cosmos with a view to add further streams going forward.
KR1 said the bullish crypto market activity in 2021 has lifted its portfolio “into new highs.”
In 1H21, KR1 saw material increases in Polkadot and Cosmos, two of its core holdings. It also saw Lido, a more recent investment, ‘go from strength-to-strength’ as its liquid Ethereum 2.0 staking product went live and attracted vast sums of ETH without signs of stopping, it noted.
During 1H21, KR1 unveiled a string of new appointments to its Board of Directors, including Rhys Davies as Non-Executive Chairman and Mona Elisa as Non-Executive Director which the Company said was reflective of its efforts to further enhance its corporate governance.
Currently, KR1 said it is seeing an unprecedented usage of blockchain networks, and more allocations to digital assets among institutional investors - trends which it expects to continue.
The Company acknowledged that further clarification with regards to regulation in the crypto and digital assets space is expected soon, with stablecoins being a likely area of focus.
KR1 said regulatory bodies have also been ‘taking note’ of the rate of growth and power inherent in decentralised technologies, but that the Company remains confident that permission-less, open-source, decentralised technologies will continue to proliferate globally.
‘The current enthusiasm in the digital asset market and increasing rates of adoption mean we expect KR1 to remain in a very strong position to the end of the financial year 2021,’ it noted.
’As positive market sentiment continues, we are excited by KR1’s portfolio performance, composition and its ability to generate strong revenues from staking activities and consistent shareholder returns. All these bode well for a strong end to FY21 and exciting 2022.’
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