REG - KR1 PLC - Full Year Results
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RNS Number : 1123C KR1 PLC 28 April 2026
KR1 plc
Tuesday, 28 April 2025
KR1 plc ("KR1" or the "Company")
Audited Results for the Twelve Months Ended 31 December 2025
KR1 plc (LSE: KR1), a digital asset technology company, is pleased to announce
its audited results for the twelve months ended 31 December 2025 ("FY25").
Infrastructure Income Highlights
- Infrastructure income of £4.8 million for FY25
- A decrease of 62.3% on FY24 (£12.8 million)
- Income was derived from the Company's Technology Infrastructure
operations, encompassing staking activities across Ethereum and other major
proof-of-stake networks and represented 99.1% of the Company's total income
from digital assets
- Main networks contributing to Technology Infrastructure income for
FY2025:
- Staking activities on Polkadot (£2.0 million)
- Staking activities on Cosmos (£1.2 million)
- Staking activities on Celestia (£1.1 million)
- Following the year end, the Company introduced its Financial
Infrastructure Strategy, with a view to generate yield and further diversify
its income streams, including Nexus Mutual underwriting and liquidity
provisioning activities across Bitcoin, Ethereum and other holdings
Holdings & Net Asset Highlights
- Largest five digital asset holdings as at 31 December 2025,
reflecting the Company's strategic portfolio positions:
- Ethereum via Lido ("stETH"), £11.3 million
- Polkadot ("DOT"), £7.2 million
- Nexus Mutual ("NXM"), £5.8 million
- Lido ("LDO"), £5.0 million
- Redstone ("RED"), £4.0 million
- As at FY25 year end, net assets of £49.6 million, representing
27.93 pence per share
- A decrease of 64.4% on FY24 year end (£139.4 million and 78.76
pence per share), reflecting the decline in digital asset valuations across
the period
Strategic Highlights
- Successful admission to the Main Market of the London Stock Exchange
in November 2025 concluded a multi-year programme (expenses associated with
the listing migration totalled £1.7 million), broadening institutional
eligibility and establishing the platform for the Company's next phase of
development.
- KR1 operates across three complementary strategies
- Technology Infrastructure operations, building on the Company's
established staking activities across major Proof-of-Stake networks;
- The recently introduced Financial Infrastructure operations, focused on
selectively deploying holdings, including Bitcoin and Ethereum, as productive
assets into financial protocols to generate income;
- Venture & Strategic investments, investing in early-stage
opportunities and managing the Company's digital asset holdings with a focus
on medium to long-term capital-growth
- KR1 is positioned well for the next phase of blockchain adoption, as
stablecoins, tokenised real-world assets, decentralised finance and AI are
growing demand for open, decentralised infrastructure.
Outlook
- KR1 continues to concentrate capital towards infrastructure networks
and protocols that the Company believes are best positioned to benefit from
the next decade of onchain adoption.
- Into 2026, the Company is focused on increasing institutional
visibility, improving market understanding of its business model and the
active role it takes in onchain infrastructure
- The convergence of AI with onchain infrastructure is, we believe, a
structural demand driver of a different order of magnitude to anything we have
previously observed
Chairman's Report
We are pleased to present KR1 plc's Annual Report and Financial Statements for
the twelve months ended 31 December 2025.
This marks our first set of full-year results following the Company's
successful migration to the Main Market of the London Stock Exchange. The
migration of the Company's listing reflects the maturation of KR1 plc's
operations and underscores the ongoing commitment to rigorous corporate
governance, transparency and providing institutional-grade exposure to the
digital asset industry on the London public markets.
While 2025 has been a challenging year in the digital asset markets, resulting
in decreased income and net asset value for the Company, we continue to
generate a robust income from our operations in the digital asset ecosystem,
testament to the resilience of our strategies.
For the twelve months ended 31 December 2025, KR1 plc generated £4.8 million
in infrastructure income as compared with £12.8 million for the previous
financial year. The infrastructure income originated from staking activities
and represented 99.1% of the Company's income from digital assets in 2025 as
compared with 98.3% in the previous financial year.
Further, as at 31 December 2025, the net asset value of KR1 plc was 27.93
pence per share as compared with 78.76 pence per share a year earlier and the
net asset value of the Company was £49.6 million, as compared with £139.4
million a year earlier.
In total, the Company reported a loss per share for the year of 20.23p as
compared to earnings per share of 4.43p in the previous financial year.
However, looking ahead, the Board shares a strong sense of optimism. We are
diligently executing the strategy outlined in our Prospectus and recent
communications, with KR1 plc being best placed to provide credible digital
asset exposure on the London public markets. Further, we remain confident of
our ability to deliver long-term value to our shareholders through the
Company's active operations and involvement in Ethereum and other networks and
protocols shaping the digital asset industry today.
On behalf of the Board of Directors, I thank all Shareholders for their
support.
Sincerely yours,
Rhys Davies
Chairman
Managing Directors' Report
On 25 November 2025, KR1 plc became the first, and to date, only diversified
digital asset company listed on the London Stock Exchange. This was a historic
moment in the digital asset industry and for public markets in the UK, and a
pivotal moment for the Company.
The demands of the listing process, including the ongoing dialogue with the
FCA, and active policy engagement, meant the transition from the Aquis Growth
Market to the LSE Main Market was a significant undertaking, absorbing
substantial management resources and operational capacity. This limited the
capacity of the Company to materially expand business operations, strategy and
investments. KR1's diversified approach sets it apart on the public markets, a
distinction we believe will become increasingly significant as institutional
demand for onchain infrastructure exposure grows.
The financial results for 2025 reflected both the operational demands of this
listing process and the difficult market conditions that prevailed throughout.
The financial results for 2025 reflected both the operational demands of this
listing process and the difficult market conditions that prevailed throughout.
The surge in institutional inflows that drove Bitcoin to successive highs via
ETFs proved narrowly contained. Ethereum benefited to a degree, but capital
largely stopped at the ETF wrapper and did not rotate meaningfully into the
broader innovation digital asset ecosystem, leaving the rest of the market and
the majority of our holdings largely behind. The broader digital asset market
also suffered from the 10 October 2025 liquidation event, from which many
participants are still recovering.
Throughout the financial year, our Net Asset Value per share fell from 78.76
pence to 27.93 pence over the course of the year, and total Net Assets shrunk
from £139.4 million to £49.6 million. Infrastructure income, from staking
activities, compressed from £12.8 million in 2024 to £4.8 million in 2025,
reflecting a loss of investor appetite in risk-on assets as the economy
stalled, Trump's tariffs took effect and geopolitical tensions persisted. We
weren't alone, every major digital asset investor and operator felt the strain
of the broader market climate.
Now, in 2026, with confidence returning to the market, we are operating from a
position of real momentum. As the first diversified digital asset company
operating on the LSE, with our operations around Technology and Financial
Infrastructure alongside the Venture and strategic investments facing-side of
the Company firmly in place, we are in the strongest position of our
decade-long history.
We enter this next phase not as a new entrant, but as an established operator
with deep domain expertise, extensive network relationships and live
infrastructure operations across a range of networks and protocols with a
diversified balance sheet of productive digital assets actively shaped to
reflect where we believe the most significant wave of demand has yet to
arrive. Unlike passive Digital Asset Treasury companies or Exchange Traded
Funds (or Notes) that rely solely on market movements, KR1 is an active,
operational and income-generating operator at the frontier of the onchain
economy that we believe will define the next decade.
With the launch of our Financial Infrastructure operations since the start of
the year, KR1 entered a new and important phase of its evolution, establishing
a dedicated and growing stream of income that sits alongside our Technology
Infrastructure operations, where we have been powering decentralised
proof-of-stake networks since 2019 as well as our venture activities since the
Company's inception. Initially anchored in Bitcoin and Ethereum yield
strategies, this operation is building toward and operating what we believe
will become the essential layer of global asset movement, activities we refer
to collectively as 'Onchain Infrastructure'.
As part of our operations, the Company has utilised an allocation of its
existing Nexus Mutual holding to participate in staking pools, supporting a
select group of established and rigorously vetted protocols within Ethereum's
decentralised finance ecosystem to generate income from this holding. However,
this represents just the first steps on the Financial Infrastructure front, we
are not stopping with Nexus Mutual and are working on adding additional income
streams across other protocols in the near future.
The convergence of AI with onchain infrastructure is, we believe, a structural
demand driver of a different order of magnitude to anything we have previously
observed. AI agents, autonomous systems capable of managing capital and assets
without human intervention, require programmable money, verifiable data and
tamper-resistant execution environments that centralised financial
infrastructure is fundamentally ill-equipped to provide.
Blockchains, and Ethereum in particular, are purpose-built for the agentic
economy. Ten years mature, global and permissionless, Ethereum carries the
strongest network effects, the largest developer ecosystem and the deepest
application layer of any smart contract network. It is the settlement layer of
choice for machine economies, with developments such as the x402 micropayment
standard and a growing ecosystem of onchain agent frameworks cementing that
position. KR1's substantial Ethereum holding (through Lido Staked ETH) already
provides meaningful exposure to this theme, and we are building on that
foundation deliberately. It represents the natural next step for a company
that has spent a decade at the frontier of decentralised networks, and we
believe the timing, as autonomous agent activity and compute begins to scale
onchain in earnest, could not be better.
Further, through our Zee Prime II specialised fund holding, we already have
existing look-through exposure to Gensyn, a decentralised AI compute network
aggregating idle GPU and CPU resources into a single verifiable compute layer,
an early and considered entry into machine learning infrastructure at the
heart of the agentic AI boom. Networks like Gensyn are important as they
remove single-point-of-control risk from the intelligence layer, critical as
global reliance on AI deepens.
On the broader AI and crypto convergence, we are actively evaluating and
researching opportunities and operational strategies. It is worth noting that
distributed compute is not a new theme for KR1. Shortly after KR1's inception
in 2016, we backed Golem, one of our earliest investments, and our renewed
interest is a continuation of long-held conviction. What is new is the
convergence of decentralised compute alongside agentic AI, and the scale of
the opportunity it presents. We are fully focused on this convergence, and we
have rarely felt more energised about what lies ahead. As AI grows in global
importance, the imperative to decentralise it, to eliminate fragility, reduce
single points of failure, and return power to open networks becomes ever more
urgent. This has been KR1's core thesis since 2016, now applied to what may be
the defining technology of our time.
As this new frontier develops, AI demand directed at the digital asset
settlement layers, oracle networks and data availability protocols that KR1
already participates in and operates could represent a wave of adoption that
is, today, difficult to fully anticipate. Against this backdrop, we are in the
final stages of launching KR1's dedicated network infrastructure operations in
the form of validators on Ethereum. As onchain activity scales across
tokenisation, stablecoin volumes and decentralised AI, validator rewards and
fee generation follow, and this infrastructure expansion positions KR1 to
capture that upside directly. It represents the natural next step for an
operator that has spent a decade at the frontier of decentralised networks,
and we believe the timing, as autonomous agent activity and compute begins to
scale onchain in earnest, could not be better.
With RedStone, the fast-growing oracle provider we supported through both seed
and follow-on funding, we are exploring opportunities for KR1 to take an
active role in the network as a RedStone operator. The pace and quality of
RedStone's recent integration wins speaks for itself: primary data feed
infrastructure for Canton Network, an institutional RWA blockchain backed by
Goldman Sachs and Citadel Securities hosting over $6 trillion in tokenised
assets; core oracle provider for Tempo, the payments blockchain co-developed
by Stripe and Paradigm which also houses their Agentic AI Machine Payment
Protocol; and the purpose-built HyperStone oracle stack powering over $1.5
billion in trading volume across Hyperliquid's permissionless perpetuals
markets. Spanning institutional RWA, global payments and high-performance
derivatives, Redstone is the common thread across three of the most
significant oracle integrations in the space. With the additional launch of
CLARA, its agent-to-agent communication and marketplace layer, Redstone is
positioning itself as foundational plumbing for the new onchain economy in its
entirety, and our relationship and potential operator role places us well to
benefit from that trajectory.
We are also evaluating opportunities in the data availability space, including
operations with Celestia and other protocols we hold, where we see a
meaningful opportunity to operate as active infrastructure participants rather
than passive holders.
After navigating a challenging 2025 we believe the 2026 macroeconomic
environment is becoming meaningfully more constructive. Liquidity will return,
and when it does, it will flow toward quality. We are entering what may prove
to be one of the most consequential years in the history of digital assets,
with the convergence of agentic AI, decentralised compute, real world asset
tokenisation and institutional adoption creating conditions that favour
precisely the kind of patient, infrastructure-oriented approach KR1 has taken.
The networks, validators and decentralised AI and agentic compute layers being
built today will form the backbone of a new financial and computational
internet, and KR1 is now positioning itself as an active participant in that
buildout.
We would like to thank our shareholders for their continued support and
patience, and we look forward to demonstrating, through our actions and
results, why KR1 is the most credible, institutional-grade digital asset
vehicle on the London markets on its path to build out the premium blue chip
digital asset company on the LSE, the next chapter for KR1 is just getting
started.
George McDonaugh & Keld van Schreven
Managing Directors & Co-Founders
Statement of Comprehensive Income
2025 2024
£ £
Continuing operations
Income
Income from digital assets 4,872,546 13,028,305
Interest received - 3,382
Direct costs (305,127) (621,429)
Gross profit 4,567,419 12,410,258
Administrative expenses (5,599,139) (5,284,676)
(Loss) on disposal of intangible assets held at fair value (8,479,992) (1,024,359)
(Loss) on disposal of intangible assets held at cost (325,709) -
Gain on disposal of financial assets 171,904 -
Movement in fair value of intangible assets at fair value through profit and
loss
(22,610,544) -
Movement in fair value of financial assets at fair value through profit and
loss
(4,076,470) 1,739,030
Movement in fair value of intangible assets held under the cost model 374,310 10,847
Share option surrender 149,852 -
Operating (loss)/profit (35,828,369) 7,851,100
Taxation on loss - -
(Loss)/profit after taxation (35,828,369) 7,851,100
Other comprehensive income:
Movement in fair value of intangible assets (53,822,045) (63,104,474)
Total other comprehensive income for the year (53,822,045) (63,104,474)
Total comprehensive income attributable to the equity holders of the Company
(89,650,414) (55,253,374)
Earnings per share attributable to the equity owners of the company (pence):
Basic earnings per share (20.23) 4.43
Diluted earnings per share (20.23) 4.43
The Company has elected as an accounting policy to present one single
statement, statement of profit or loss and other comprehensive income, rather
than to present two separate statements, a statement of profit or loss and a
statement of comprehensive income
Statement of Financial Position
2025 2024
£ £
Assets
Non-current assets
Intangible assets 272,889 -
Intangible assets receivable 2,384,806 3,375,391
Total non-current assets 2,657,695 3,375,391
Current assets
Intangible assets 37,513,886 121,414,750
Intangible assets receivable 2,382,209 1,869,927
Financial assets at fair value through profit and loss 6,155,680 12,337,947
Cash and cash equivalents 1,306,081 1,176,291
Trade and other receivables 201,626 215,657
Total current assets 47,559,482 137,014,572
Total assets 50,217,177 140,389,963
Equity and liabilities
Current liabilities
Trade and other payables 614,000 987,622
Total current liabilities 614,000 987,622
Net assets 49,603,177 139,402,341
Equity
Share capital 338,107 337,005
Share premium 36,602,619 36,602,619
Capital redemption reserve 471,751 471,751
Revaluation reserve - 53,822,045
Option reserve - 149,852
Treasury shares (298,044) (298,044)
Retained reserves 12,488,744 48,317,113
Total equity 49,603,177 139,402,341
Total equity and liabilities 50,217,177 140,389,963
Statement of Changes in Equity
Share Treasury shares Capital redemption reserve Share Revaluation reserve Option Retained Total
premium
reserve
capital £
reserves
£
£
£ £
£ £ £
Balance at 1 January 2025 337,005 (298,044) 471,751 36,602,619 53,822,045 149,852 48,317,113 139,402,341
(Loss) for the financial year - - - - - - (35,828,369) (35,828,369)
Total other comprehensive income for the year - - - - (53,822,045) - - (53,822,045)
Total comprehensive income for the year - - - - (53,822,045) - (35,828,369) (89,650,414)
Issue of ordinary shares at par 1,102 - - - - - - 1,102
Surrender of share options - - - - - (149,852) - (149,852)
Transactions with owners, recorded directly in equity 1,102 - - (149,852) - (148,750)
Balance at 31 December 2025 338,107 (298,044) 471,751 36,602,619 - - 12,488,744 49,603,177
Statement of Cash Flows
2025 2024
£ £
Assets
Non-current assets
Intangible assets 272,889 -
Intangible assets receivable 2,384,806 3,375,391
Total non-current assets 2,657,695 3,375,391
Current assets
Intangible assets 37,513,886 121,414,750
Intangible assets receivable 2,382,209 1,869,927
Financial assets at fair value through profit and loss 6,155,680 12,337,947
Cash and cash equivalents 1,306,081 1,176,291
Trade and other receivables 201,626 215,657
Total current assets 47,559,482 137,014,572
Total assets 50,217,177 140,389,963
Equity and liabilities
Current liabilities
Trade and other payables 614,000 987,622
Total current liabilities 614,000 987,622
Net assets 49,603,177 139,402,341
Equity
Share capital 338,107 337,005
Share premium 36,602,619 36,602,619
Capital redemption reserve 471,751 471,751
Revaluation reserve - 53,822,045
Option reserve - 149,852
Treasury shares (298,044) (298,044)
Retained reserves 12,488,744 48,317,113
Total equity 49,603,177 139,402,341
Total equity and liabilities 50,217,177 140,389,963
Relevant Notes to the Financial Statements
Basis of preparation
The financial statements have been prepared in accordance with UK-adopted
International Accounting Standards.
The financial statements are presented in Pounds Sterling ("GBP"). The
Company's functional currency is also GBP and has been assessed by the
Directors based on consideration of the currency and economic factors that
mainly influence the Company's digital assets, investments, operating costs,
financing and related transactions. Changes to these factors may have an
impact on the judgement applied in the determination of the Company's
functional currency.
Assets and liabilities in foreign currencies are translated into sterling at
the rate of exchange ruling at the balance sheet date. Transactions in foreign
currencies are translated into sterling at the rate of exchange ruling at the
date of transaction. Foreign exchange differences arising on translation are
recognised in profit or loss.
The preparation of financial statements in conformity with UK-adopted
International Accounting Standards requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in
the process of applying the Company accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements are disclosed in Note 3.
Going concern
The preparation of financial statements requires an assessment on the validity
of the going concern assumption.
The Board has evaluated the Company's financial forecasts and projections,
comprehensively assessing principal risks alongside broader macroeconomic and
geopolitical factors. Following this rigorous review, the Directors have a
reasonable expectation that the Company will be able to continue in operation
and meet its liabilities as they fall due over the three-year period of
assessment.
In making this assessment, the Directors have exercised significant judgement
in assuming that the digital asset markets and the associated blockchain
infrastructure on which the Company's staking activities depend will continue
to operate and develop in a manner broadly consistent with current conditions
over the three year period. In making this viability statement the Directors
have also considered market downturn in the fair value of digital asset
holdings of 10% and 50% per annum and a reduction in income from digital
assets of 10% and 50% per annum, with 50% being a worst case scenario.
Consequently, the Board considers it entirely appropriate to continue adopting
the going concern basis of accounting in the preparation of the Financial
Statements.
Significant accounting policies
The principal accounting policies applied in the preparation of these
financial statements are set out below.
Measurement convention
The financial statements have been prepared under the historical cost
convention except for the following items:
listed financial assets which are carried at fair value; and
intangible assets traded in an active market which are carried at fair value.
A number of assets and liabilities included in the Company's financial
statements require measurement at, and/or disclosure of, fair value.
The fair value measurement of the Company's financial and non-financial assets
and liabilities utilises market observable inputs and data as far as possible.
Inputs used in determining fair value measurements are categorised into
different levels based on how observable the inputs used in the valuation
technique utilised are (the 'fair value hierarchy'):
Level 1: Quoted prices in active markets for identical items (unadjusted)
Level 2: Observable direct or indirect inputs other than Level 1 inputs
Level 3: Unobservable inputs (i.e. not derived from market data).
The classification of an item into the above levels is based on the lowest
level of the inputs used that has a significant effect on the fair value
measurement of the item. Transfers of items between levels are recognised in
the period they occur.
Income
Income from digital assets represents amounts received from staking
activities, distributions, governance rewards and during the comparative year
income from parachains.
Other Income represents amounts received from the disposal of intangible
assets, the disposal of financial assets and during the comparative year bank
interest was also received.
Gains and losses arising from changes in the fair value of the financial
assets at fair value through profit or loss and from changes in fair value of
intangible assets are presented in the statement of comprehensive income
within movement in fair value of financial assets at fair value through profit
or loss and movement in fair value of intangible assets respectively in the
period in which they arise.
Income from the disposal of digital assets is recognised on the date of the
sale and income from staking, parachains, distributions and bonus tokens are
recognised on an accruals basis as earned.
Intangible assets
Digital assets
The Company holds digital assets which do not qualify for recognition as cash
and cash equivalents or financial assets. The Company does not meet the
definition of a broker-trader under IAS 2 "Inventories" as the assets are not
principally acquired for the purpose of selling in the near future and
brokerage in nature. The assets are held with a view to participate in
proof-of-stake networks and with a view to medium to long term capital growth.
Considering this, the digital assets have been classified as Intangible Assets
in accordance with IAS 38 and the revaluation model has been applied as there
is an active market for the digital assets. The assets are identifiable;
separable and future economic benefits are expected. Intangible assets held
are measured initially at cost and are subsequently carried at a revalued
amount based on fair value.
All assets in this class are accounted for using the same model unless there
is no active market for those assets. A class of intangible assets is a
grouping of assets of a similar nature and use in an entity's operations. The
items within a class of intangible assets are revalued simultaneously as is
required, and to avoid selective revaluation of assets and the reporting of
amounts in the Financial Statements representing a mixture of costs and values
as at different dates.
Revaluation increases in the carrying amount are recognised in other
comprehensive income and accumulated in the revaluation surplus within equity.
Revaluation decreases which offset previous increases are charged in other
comprehensive income and debited to the revaluation surplus directly in
equity. All other decreases are charged to the income statement.
The digital assets have indefinite useful lives and are reviewed at each
reporting period to determine whether events and circumstances continue to
support an indefinite useful life assessment for that asset.
Early-stage investments for future tokens
Projects and entities looking to launch a decentralised blockchain network or
product (including proof-of-stake networks) may make use of agreements such as
a 'Simple Agreement for Future Tokens' ("SAFT") or a 'Simple Agreement for
Future Equity ("SAFE") in combination with a Token Warrant (warrant to
purchase digital assets).
Whereby an investment takes the form of a SAFE and Token Warrant the equity
element (SAFE) is classified as a financial asset in accordance with Note 6
whereas the Token Warrant, to be exercised at a negligible value, is the
element classified as an early-stage investment for future tokens. Once the
digital assets are "issued" the corresponding SAFE is evaluated for full
impairment if no further economic benefits are expected.
The early-stage investments for future tokens in the Company consist of SAFTs
and Token Warrants, whereby the investor provides upfront funding to a project
in exchange for an entitlement to receive a variable number of digital assets
or tokens in the future upon a successful launch of the respective project.
Details in agreements can vary, impacting the determination of the accounting
treatment including (but not limited to) the characteristics and features that
the digital asset or tokens will have, and the rights to which the future
holders will be entitled through such agreements for future tokens. These
investments are accounted for at cost less impairment.
Considering this it has been determined that the investments do not meet the
definition of a financial asset as they do not give the holder the right to
cash or another financial asset. The investments do meet the definition of an
identifiable non-monetary asset without physical substance and hence an
intangible asset under IAS 38. The investments are assets that are controlled
by the Company as a result of past events and from which future economic
benefits are expected.
Unlike the digital assets held, there is no active market for these agreements
and hence these are held under the cost model and subsequent to initial
recognition will be held at cost less impairment. No amortisation will be
charged to the assets as the investment is entered into with the outcome
expected that digital assets will be provided at the end of the agreement
following a projects' launch.
Financial instruments
Financial assets
Financial assets are recognised in the Statement of Financial Position when
the Company becomes party to the contractual provisions of the instrument. The
Company initially recognises loans and receivables and deposits on the date
that they are originated. All other financial assets (including assets
designated at fair value through profit or loss) are recognised initially on
the trade date at which the Company becomes a party to the contractual
provisions of the instrument.
The Company derecognises a financial asset when the contractual rights to the
cash flows from the asset expire, or it transfers the rights to receive the
contractual cash flows on the financial asset in a transaction in which
substantially all the risks and rewards of ownership of the financial asset
are transferred.
The classification of financial assets at initial recognition that are debt
instruments depends on the financial asset's contractual cash flow
characteristics and the Company's business model for managing them. The
Company initially measures a financial asset at its fair value plus, in the
case of a financial asset not at fair value through profit or loss,
transaction costs.
Financial assets and liabilities are offset, and the net amount presented in
the statement of financial position when, and only when, the Company has a
legal right to offset the amounts and intends either to settle on a net basis
or to realise the asset and settle the liability simultaneously.
The Company has the following non-derivative financial assets: financial
assets at fair value through profit or loss and loans and receivables.
Financial assets at fair value through profit or loss
A financial asset is classified at fair value through profit or loss if it is
classified as held for trading or is designated as such upon initial
recognition. Financial assets are designated at fair value through profit or
loss if the Company manages such investments and makes purchase and sale
decisions based on their market value. Upon initial recognition attributable
transaction costs are recognised in profit or loss as incurred. Financial
assets at fair value through profit or loss are measured at fair value, and
changes therein are recognised in profit or loss.
Receivables
Receivables are financial assets with fixed or determinable payments that are
not quoted in an active market. Such assets are recognised initially at fair
value plus any directly attributable transaction costs. Subsequent to initial
recognition receivables are measured at amortised cost using the effective
interest method, less any impairment losses. Receivables comprise trade and
other receivables.
Digital assets and which are legally owned by the Company originating from
early-stage investments for future tokens may be distributed to Company owned
accounts or blockchain wallets under the Company's control by the investee
team over time in accordance with the terms of contractual agreements between
the Company and the investees. The Company recognises these owned but
yet-to-be-received digital assets as Intangible assets receivable.
Cash and cash equivalents
Cash and cash equivalents includes cash at bank and cash held on trading
platforms and comprises cash balances and call deposits with original
maturities of three months or less.
Equity instruments
The Company subsequently measures all equity investments at fair value. Where
the Company's management has elected to present fair value gains and losses on
equity investments in OCI, there is no subsequent reclassification of fair
value gains and losses to profit or loss following the derecognition of the
investment.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial
liabilities at fair value through profit or loss, loans and borrowings,
payables. All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs. The Company's financial liabilities include
trade and other payables.
Trade and other payables
After initial recognition, trade and other payables are subsequently measured
at amortised cost using the EIR method. Gains and losses are recognised in the
statement of profit or loss and other comprehensive income when the
liabilities are derecognised, as well as through the EIR amortisation process.
A financial liability is derecognised when the associated obligation is
discharged or cancelled or expires.
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax
is recognised in profit or loss except to the extent that it relates to items
recognised directly in equity or other comprehensive income, in which case it
is recognised directly in equity or other comprehensive income. Current tax is
the expected tax payable or receivable on the taxable income or loss for the
year, using tax rates enacted or substantively enacted at the reporting date,
and any adjustment to tax payable in respect of previous years.
Deferred tax is provided on timing differences which arise from the inclusion
of income and expenses in tax assessments in periods different from those in
which they are recognised in the financial statements. Deferred tax is not
recognised on permanent differences arising because certain types of income or
expense are non-taxable or are disallowable for tax or because certain tax
charges or allowances are greater or smaller than the corresponding income or
expense. Deferred tax is measured at the tax rate that is expected to apply to
the reversal of the related difference, using tax rates enacted or
substantively enacted at the reporting date. Deferred tax balances are not
discounted. Unrelieved tax losses and other deferred tax assets are recognised
only to the extent that is it probable that they will be recovered against the
reversal of deferred tax liabilities or other future taxable profits.
Treasury shares
The costs of repurchasing ordinary shares including transaction costs are
recognised in the Statement of Changes in Equity and accounted for on a trade
date basis. The Company must not exercise any right in respect of the treasury
shares (e.g. attending or voting at meetings) and no dividend or distribution
can be paid to them (including any distribution of assets to members on a
liquidation) and therefore treasury shares are excluded from NAV and EPS
calculations.
Capital redemption reserve
The capital redemption reserve is created further to the redemption of Class C
and Class D shares below par. The difference between nominal value and the
redemption amount is recognised within equity as a capital redemption reserve
which is a distributable reserve.
Segmental information
The Board has determined that the Company is operating in a single operating
segment being that of decentralised technologies and digital assets. In the
financial year 97.00% (2024: 99.04%) of the assets of the Company consist of
digital assets and holdings in the decentralised technologies industry.
Further, throughout the financial year 2025, 100% (2024: 99.79%) of the
Company's income is from digital assets and of that 99.12% (2024: 98.28%) was
generated from the Company's staking activities on a range of decentralised
networks.
Due to the nature of decentralised networks and digital assets, it is not
possible to provide a geographical split of the Company's income stream and
its assets as digital assets are traded worldwide and are not specific to a
geographical area.
Earnings per share
The basic earnings per share is calculated by dividing the profit after tax of
the Company for the year attributable to equity shareholders by the weighted
average number of shares in issue.
The diluted earnings per share is calculated by dividing the profit after tax
of the Company or the year attributable to equity shareholders by the weighted
average number of shares in issue plus the number potential ordinary shares
(share options as further described in Note 16).
Profit after tax of the Company for the year: loss £35,828,369 (2024:
£7,851,100)
Weighted average number of Ordinary 0.19p Shares in issue: 177,103,452 (2024:
177,145,867).
Options exercisable at the year-end: nil (2024: 223,150)
Basic earnings per share: loss 20.23p (2024: 4.43p).
Diluted earnings per share: loss 20.23p (2024: 4.43p)
Intangible assets
Digital assets
The intangible assets consist of digital assets and early-stage investments
for future tokens. As detailed in the accounting policies the digital assets
are intangible assets held under the revaluation model and early-stage
investments for future tokens are also held as intangible assets at cost less
impairment and amortisation.
2025 2024
£ £
Digital assets 41,884,528 124,822,006
Early-stage investments for future tokens 669,262 1,838,062
Balance at 31 December 42,553,790 126,660,068
Digital assets that are legally owned by the Company from early-stage
investments for future tokens may be distributed to Company owned accounts or
blockchain wallets under the Company's control by the investee team over time
in accordance with the terms of contractual agreements between the Company and
the investees. The Company recognises these owned but yet-to-be-received
digital assets as Intangible assets receivable.
Whilst, under such circumstances the Company generally forfeits its ability to
sell or otherwise transfer its locked digital assets, no other entity obtains
the right to direct their use and the Company is still the primary entity
holding the risks and rewards of ownership. Locked digital assets may be
unlocked as a full tranche or may be subject to unlock and vesting schedules.
The Company does not derecognise time locked or vesting digital assets which
are classified and measured in the same manner as non-locked digital assets.
The Company classifies digital assets which are due for release no later than
one year after the year end as intangible assets held as current assets.
Digital assets, which are due for release more than one year after the year
end are classified as intangible assets held as non-current assets.
Digital assets receivable from third parties subject to unlock and vesting
schedules, or as distributions and rewards are classified as intangible assets
receivable.
Intangible assets held at fair value 2025 2024
£ £
Intangible assets held as current assets 37,513,886 121,414,750
Intangible assets held as non-current assets 272,889 -
Intangible assets receivable held as current assets 2,382,209 1,869,927
Intangible assets receivable held as non-current assets 2,384,806 3,375,391
Balance at 31 December 42,553,790 126,660,068
The following tables present the Company's digital assets subject to time lock
at 31 December 2025.
Asset Lock type Number of tokens Fair value Release date*
£
AI3 Time locked 2,500,000 48,400 04/09/2029
ALTHEA Time locked 250,444 13,700 **
AVAIL Time locked 12,500,000 59,975 14/01/2027
BOB Time locked 50,900,000 407,455 29/04/2027
CLEAR Time locked 996,807 2,566 06/06/2026
MODE Time locked 125,000,000 54,475 07/04/2027
RED Time locked 25,454,545 4,024,364 06/09/2027
TANSSI Time locked 16,939,394 156,080 09/07/2027
XAN Time locked 25,000,000 307,000 29/01/2028
Total 5,074,015
*Vesting schedules generally comprise of monthly linear unlocks beginning one
year after the Token Generation Event. The release date of time locked digital
assets stated being the last tranche and marking the end date of the unlock
schedules.
** ALTHEA release date subject to Governance vote
At the year end the Company held digital assets as detailed below:
2025 Number of Cost Fair Value
coins or tokens
Assets £ £
Lido Staked ETH (stETH) 5,119 7,371,480 11,289,391
Polkadot (DOT) 5,398,208 21,087,316 7,182,277
Nexus Mutual (NXM) 110,698 217,363 5,832,682
Lido (LDO) 11,749,998 89,300 5,034,874
Redstone (RED) 25,454,545 296,660 4,024,364
Cosmos (ATOM) 2,103,439 9,460,892 3,013,991
Celestia (TIA) 7,007,187 7,246,375 2,372,388
Hydration (formerly Hydra DX) (HDX) 144,138,446 888,572 434,577
Build on Bitcoin (BOB) 50,900,000 71,318 407,455
Anoma (XAN) 25,000,000 804,537 307,000
Moonbeam (GLMR) 17,354,130 5,541,345 296,889
Astar (ASTR) 39,993,433 3,746,208 284,367
Kusama (KSM) 46,036 1,720,830 233,342
Tanssi (TANSSI) 20,000,000 298,240 184,280
Automata Network (ATA) 13,348,983 253,720 167,263
USDC (USDC) 186,886 142,517 138,923
Other minor holdings 5,423,976 680,465
Balance at 31 December 2025 64,660,649 41,884,528
Revaluation increases in the carrying amount are recognised in other
comprehensive income and accumulated in the revaluation surplus within equity.
Revaluation decreases which offset previous increases are charged in other
comprehensive income and debited to the revaluation surplus directly in
equity. All other decreases are charged to the income statement.
Sensitivity analysis for digital assets
If the average fair values of the digital assets at fair value had
increased/decreased by 10% during 2025 with all other variables held constant,
the Company's profit for the year would have moved by +/- £4,188,483 (2024:
+/- £12,482,201).
Early-stage investments for future tokens
Early-stage investments for future tokens are recognised initially on the
trade date at which the Company becomes a party to the contractual provisions
of the instrument.
Accumulated amortisation, impairment and revaluation
2025 2024
£ £
Balance at 1 January 1,838,062 1,512,596
Acquisition of intangible assets 297,846 1,095,259
Disposals of intangible assets (365,090) -
Reclassification (Intangible assets at fair value) (1,475,866) (780,640)
Change in fair value of intangible assets 374,310 10,847
Balance at 31 December 669,262 1,838,062
Due to the nature of the intangible assets an infinite useful economic life
has been used for the asset. Once the early-stage investments generate tokens
(i.e. the Company received the digital assets) the assets are held at
revaluation. Subsequent to the issue of digital assets, the investments are
held until such a time that the Company disposes of them in the market.
Upon a successful token launch (i.e. the Company received the digital assets),
early-stage investments for future tokens are reclassified as digital assets.
Post Balance Sheet Events
On 9 February 2026 the Company announced the introduction of its Financial
Infrastructure Strategy in order to evolve and complement existing operations
and income streams. As part of this Bitcoin ("BTC") and further Ethereum
("ETH") have been added to the Company assets. Bitcoin and Ethereum will both
be utilised by the Company within DeFi alongside a risk mitigation strategy
through Nexus Mutual smart contract cover. This enables a low-risk approach
whilst providing the opportunity to generate higher yields relative to market
alternatives.
Further on 18 February 2026 the Company announced an addition to its Financial
Infrastructure Strategy through the Nexus Mutual ("NXM") protocol. The Company
has committed an initial allocation of its existing NXM holdings to underwrite
discretionary cover across Ethereum's decentralised finance ecosystem ("DeFi")
via Nexus Mutual staking pools.
On 16 April 2026 the Company announced an update on the holding in Bitway.
Following the launch of the BTW token on 3 March, KR1 plc holds a total of
100,000,000 BTW, acquired through the Company's US$300,000 investment in
Bitway's (formerly Side Protocol) pre-seed funding round as announced on 26
July 2023. Based on the BTW market price as at 15 April 2026, the Company's
holding is valued at approximately US$1.7 million. The Company's BTW tokens
are subject to an initial lock-up of 12 months from token launch and
thereafter a linear unlock over a further 24 months.
The Notes to the Financial Statements contained in the Company's Annual Report
form part of the Financial Statements.
The Company's Annual Report and Financial Statements were approved by the
Board of Directors on 27 April 2026 and were signed on its behalf by George
McDonaugh (Managing Director & Co-Founder) and Keld van Schreven (Managing
Director & Co-Founder).
The financial information set out in this announcement does not constitute
statutory accounts. The financial information has been extracted from the
Company's Annual Report and Financial Statements for the year ended 31
December 2025.
The Annual Report and Financial Statements of the Company will be available on
the Company's website: (http://www.kr1.io/)
https://www.KR1.io/investors/documents
(https://www.kr1.io/investors/documents)
Contact
For further information, please contact:
KR1 plc (LSE: KR1)
George McDonaugh, Keld van Schreven
Phone: +44 (0)1624 630 630
Email: investors@KR1.io
Singer Capital Markets (Corporate Broker and Financial Adviser)
Investment Banking: Alex Bond, James Fischer
Equity Sales: William Gumpel
Phone: +44 (0)20 7496 3000
Email: enquiries@singercm.com
SEC Newgate (PR, Media and Financial Communications Adviser)
Ian Silvera, Bob Huxford, Dafydd Rees
Phone: +44 (0)20 3757 6882
Email: KR1@secnewgate.co.uk
AlbR Capital (Financial Adviser)
David Coffman
Phone: +44 (0)20 7469 0930
Email: info@albrcapital.com
About KR1 plc
KR1 plc (LSE: KR1) is a digital asset technology company publicly listed on
the London Stock Exchange, focused on the infrastructure layer of
decentralised networks. By securing Ethereum and other leading proof-of-stake
networks, the Company steadily compounds its asset base alongside strategic
investments - turning active network participation into long-term value for
shareholders.
www.KR1.io (http://www.kr1.io/)
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law
(as defined in the European Union (Withdrawal) Act 2018).
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