KR1 plc - Update on Revenue from Cosmos Staking Yields
("KR1" or the "Company")
Update on Revenue from Cosmos Staking Yields
KR1 is pleased to announce that the Company has generated a further 54,194.25 ATOM from staking activities since the last staking update announcement in , of which 37,274.63 ATOM were sold at an average price of per ATOM token, generating for the Company.
KR1 has generated a total of over 76,665.25 ATOM from staking yields in the twelve months since the Cosmos network launch on . The Company has realised a total of 59,745.63 ATOM of this at an average price of /ATOM, which netted the company a total of in realised accrued revenue from staking yields with some ATOM still sitting on the balance sheet and capable of generating future revenue. The Company plans to maintain its staking of a large majority of its ATOM position to continue generating revenues for the Company’s operations going forward.
The total amount of ATOM generated is highly dependent on the percentage of participants in the network that are actively staking their ATOM. Whilst KR1’s returns have been strong, a higher than initially anticipated percentage of ATOM were staked by other participants due to the popularity of the network, which led to nominal staking returns being lower than originally estimated in the Company’s ‘Revenue from Cosmos Staking Yields’ announcement in .
The Company takes a long-term view on the price of ATOM, implementing a strategy where if the asset price is under pressure and below a certain price threshold, the Company will not liquidate its accruing staking yields and postpones the realising of yields until the market recovers. This strategy has led to a more favourable average realised price of /ATOM, versus an average daily price of if the Company had sold its proceeds on a daily basis.
, Managing Director & Co-Founder of KR1 commented:
“The Company made a strategic decision in early 2017 to seek out innovative projects and networks that feature Proof-of-Stake as their core security model, such as the much anticipated Polkadot network, the Dfinity project and various other projects including Enigma or Bluzelle. Further, our strategy to hold onto our ATOM below a certain price threshold has greatly improved our average exit price. We’re making the very most of this successful investment and believe that in the uncertain times ahead, income from a yield-bearing portfolio could be very significant.”
For further information please contact:
George McDonaugh +44 (0)16 2467 6716
Simon Nicol [email protected]
(Aquis Stock Exchange Corporate Adviser) Peterhouse Capital Limited
Mark Anwyl +44 (0)20 7469 0930
Angus Campbell [email protected]
KR1 is a leading digital asset investment company supporting early-stage decentralised and open-source blockchain projects. Founded in 2016 and publicly traded in (KR1:), KR1 has built a notable reputation for generating significant returns by investing in many key projects that are designed to power the decentralised platforms and protocols that are emerging to form new internet infrastructures.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a , this inside information is now considered to be in the public domain.
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