Digital asset investment company KR1 PLC (AQSE:KR1) took a hit to its book value in the 2022 crypto winter, but today’s trading update noted a positive market upswing in 2023.
Income from digital assets for the year ending December 31 came to £20.2mln, down 3.6% year on year.
Total net assets on the books fell 62.2% to £70mln, with per-share net asset value falling 67.8% to 39.47p.
A £166mln fair-value adjustment caused comprehensive income losses of £145mln.
However, KR1 noted that the cyclical crypto industry has found stability in recent months, followed by an uptick in investor confidence.
Per the group’s trading statement: “Despite the still seemingly uncertain macroeconomic conditions, we remain confident in the growth opportunity of the underlying technology and our high-quality portfolio.”
Year to date, headline cryptoasset bitcoin is up over 80%, while the second-largest cryptoasset ether (ETH) is up around 56%.
The crypto markets as a whole are up 48% when taking into account the entire altcoin space, which comprises all bitcoin and ether alternatives including Cardano (ADA), Solana (SOL) and meme coins such as Dogeocin (DOGE).
Operational highlights in 2022 included investments made in Anoma, Code&State, and Hydra Ventures, while Ethereum’s recent proof-of-stake (PoS) upgrade provided strong momentum for Ethereum-based portfolio projects, particularly Lido and Rocket Pool.
KR1’s seed investment in Celestia (formerly LazyLedger) has positioned the group favourably in the modular blockchain space.
Managing directors George McDonaugh and Keld van Schreven commented: “Whilst the Company’s NAV has been impacted by a turbulent year for the crypto market due to multiple crises, KR1 has shown remarkable resilience throughout.
“Our continued focus on building a high-quality long-only portfolio of innovative digital assets enabled us to deliver consistent income from our portfolio.
“We have also strengthened the company with key internal and external appointments and improved reporting transparency with the long-desired publication of our unaudited monthly NAV updates.