Fund update and proposed return of value
20/03/2023 07:00
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RNS Number : 4475T NFT Investments PLC 20 March 2023
Press Release
20 March 2023
This announcement contains information which, prior to its disclosure, was
inside information as stipulated under Regulation 11 of the Market Abuse
(Amendment) (EU Exit) Regulations 2019/310 (as amended). Upon the publication
of this announcement via a Regulatory Information Service, this inside
information is now considered to be in the public domain.
NFT Investments PLC
("NFT Investments" or "the Company")
Fund update and proposed return of value to shareholders
NFT Investments (AQSE: NFT), an investment firm specialising in the market for
non-fungible tokens, is pleased to provide the following update to the
Company's corporate strategy and cryptocurrency investments.
Fund Performance
The Company has an unaudited net asset value of £36.3 million (3.61p per
share) as at 20 March 2023, including £28.8 million (2.87p per share) in
liquid crypto. The current share bid price is now 58% below the Company's net
asset value ("NAV").
Investment Rationale
As previously announced, the Company's fund is now over 90% invested with over
£28 million in liquid crypto. The rationale for these investments was
based on the historical price of BTC relative to the BTC halving timeframe.
Over 19 million or over 92% of all BTC has already been created. The rate at
which new Bitcoin is created decreases by half every 210,000 blocks mined, or
roughly every four years until all 21 million Bitcoin have been mined. The
next scheduled halving will take place in April 2024. The historical data
suggests that BTC hits new highs approximately three to four months post
halving.
Proposed return of value to shareholders
The Company's directors have concluded that the correct approach to the
widening share price discount to NAV is to return value to shareholders and
the current intention is to do so after the BTC halving currently scheduled to
take place in April 2024. In the opinion of the directors, shareholder value
can best be achieved by the Company trading out the entirety of its current
liquid positions at the right time and then returning capital to
shareholders. The Company currently intends to achieve this by purchasing
its own shares through a tender offer under which shareholders would have the
opportunity to sell shares on a pro-rata basis. A purchase of shares by
tender offer would be subject to both shareholder approval and the consent of
the Court to a reduction of capital required to create distributable reserves.
This goal of returning shareholder funds will be accompanied by a quarterly
trading update in which the Company will publish its holdings of all tokens
and prices on the first business day of each quarter beginning on 3 April
2023.
The directors believe that these transparent actions coupled with a
willingness to ultimately return capital to shareholders is the best approach
given the wide discrepancy between the Company's NAV and its current share
price.
Crypto Security Update
The Company has no exposure to Silicon Valley Bank and is holding all its
crypto assets in cold storage wallets in secure locations across multiple
continents. The Company currently has no online crypto exchange
exposure.
The Company is pleased to announce that progress has continued the recovery of
the 250K GBP USDC that was announced on 12 January 2023. the Company has
been granted the right to serve legal documents to the now frozen USDC wallet
and anticipates that summary judgement will be completed in 60-90 days. The
Company remains positive that it will recover all the funds as part of this
legal process.
Jonathan Bixby, Executive Chairman of NFT Investments, commented: "Our focus
has always been on maximising shareholders return and it has become clear that
a commitment to returning capital in the form of our growing liquid crypto
portfolio (2.87p per share) is the best way to do so given our continued
discount to NAV. We are delighted by our timing and the subsequent
positioning of our crypto treasury which is now a majority invested in liquid
crypto assets like BTC and ETH. We remain in service to maximising
shareholder return and will keep the market regularly updated moving forward
towards the next BTC halving."
The Directors of NFT Investments PLC take responsibility for this
announcement.
For further information please contact:
NFT Investments
Jonathan Bixby +44 7876 888 011
Executive Chairman
First Sentinel
Corporate Adviser +44 7876 888 011
Brian Stockbridge
Tennyson Securities
Corporate Broker +44 207 186 9030
Peter Krens
About NFT Investments:
NFT Investments PLC is an incubator specialising in the market for
non-fungible tokens ("NFTs") and is the first ever NFT vehicle to list in a
major jurisdiction worldwide. The Company invests in a diversified portfolio
of NFTs, cryptocurrency, and/or in companies or funds which have exposure to
NFT or blockchain technology. The Company's leadership team have an extensive
track record in the cryptocurrency sector and previously founded Argo
Blockchain PLC, a global crypto miner. NFT Investments is headquartered in
London, UK and its shares are listed on the Aquis Stock Exchange Growth Market
under the ticker symbol NFT. https://www.nftinvest.pro/
(https://www.nftinvest.pro/)
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