In a recent conversation with Proactive's Thomas Warner, Coinsilium Group Ltd (AQSE:COIN, OTCQB:CINGF)'s executive chairman Malcolm Palle and chief executive Eddy Travia shed light on their latest strategic manoeuvre - a significant stake increase in the blockchain development company Indorse.
This move marks a pivotal moment for Coinsilium, a company already known in the digital asset arena. As they discuss the intricacies of this decision and its implications for the future, Palle and Travia offer a glimpse into the dynamic world of blockchain technology and the innovative spirit driving Coinsilium's approach towards 2024.
Thomas Warner (TW): Let's dive into the big news from earlier this week. Malcolm, you've made a significant move in Singapore. Can you share more about this?
Malcolm Palle (MP): We announced on Tuesday that we've signed heads of terms with Indorse, a portfolio company of Coinsilium. We've held about a 10% stake in them since their inception and have now increased it to just under 25%, a significant and meaningful move for us.
Indorse is a key player in blockchain development, and notably, the Times of India, one of the largest Indian media conglomerates, is also on their shareholder register. They invested $2 million in either 2019 or 2020 at a valuation of $50 million. We've worked closely with them in Singapore, and this collaboration presents a fantastic opportunity for our investors to gain exposure to the blockchain space.
I'm thrilled about this development. It's a share-for-share deal, valuing nearly 2 million pounds. We believe this represents a fair valuation, as our share price for this transaction is set at three pence, a significant premium to its current value. This reflects a mutual recognition that the market hasn't fully appreciated the value of Coinsilium's enterprise.
TW: Eddy, from your perspective as CEO, what does this mean for Coinsilium?
Eddy Travia (ET): Yes, as Malcolm mentioned, our investment in Indorse dates back over six years. Our relationship has been strong and productive; I'm actively involved with them, serving on the board and undertaking executive functions in Singapore, where I'm based. Indorse boasts remarkable experience in the blockchain field. Notably, their CTO, Gaurang Torvekar, was among the first developers to deploy smart contracts on Ethereum, right at the blockchain's inception in 2015-16.
We recently announced a new venture, the Byzant Project, a collaboration between Coinsilium and Indorse, where we are founding members. This Web3 ecosystem focuses on the professional social network sector, targeting creatives, professionals, and entrepreneurs. The Byzant Project aims to realign the interests between users and platform operators, addressing the current misalignment in the Web2 space.
This ecosystem, developed by Indorse, comprises various applications set for launch in the upcoming weeks and months. We're excited about this project as it introduces transactional models prevalent in Web2, like advertising and subscriptions, into the Web3 framework. This suite of decentralized tools will be invaluable for a wide range of users, companies, and organizations.
TW: Malcolm, with 2024 on the horizon, how do you see Coinsilium's position in the market?
MP: I believe the stars are aligning for us. Though I'm naturally cautious and try not to get too far ahead of myself, my excitement for the current developments in this space is undeniable. The crypto and digital assets environment has undoubtedly faced challenges, enduring a tough period over the last year. However, this year, there's been a significant recovery, though there's still a sense of uncertainty.
We remain optimistic about the future of this sector. I'm particularly pleased that we've navigated through these challenging times with our operational integrity and robustness intact. The market has its dynamics, which I won't elaborate on much. But with our recent investment announcement and the strengthening of our advisory capabilities, we are exceptionally well-positioned. We've been prepared for this turn of events for some time now, and the potential for Coinsilium and our shareholders is incredibly exciting.
So, stay tuned. We anticipate a lot of new developments in the coming months. I'm very enthusiastic about what the future holds, not just for the industry, but specifically for Coinsilium. I believe this coming year will be particularly impressive.