NFT Investments PLC (LON:NFT) said it poised to take advantage of the unexpected correction in cryptocurrencies and non-fungible tokens (NFTs) at more attractive valuations when the right moment comes.
The investment company specialising in NFTs noted that cryptocurrency markets have seen a sharp downturn since its flotation on London’s Aquis exchange on 16 April, with the price of Bitcoin having roughly halved to just over $31,000.
This has also impacted asset values in the NFT market, the company pointed out, with the price of Flow blockchain having fallen by more than three quarters to around $8 over the same period.
“However, NFT's highly selective and cautious investment policy, together with the board's considerable industry experience, has positioned the company to take advantage of the unexpected industry correction at more attractive valuations as and when investment conditions stabilise,” the company said in a statement.
As already announced, the company made its first investment in Aeon, a provider of NFT verification technology, for $1mln and is in the process of completing two further investments for a combined £1.1mln, details of which will be disclosed once binding agreements are signed.
The company, which said it had no current exposure to cryptocurrencies, said other potential new investment opportunities are also “under review” but will only be taken further if they pass muster.
Having made a US$440,000 return on crypto token investments before exiting the market prior to the latest industry decline, the balance sheet stood at £34.1mln as of 28 June, with funds held in fiat currency and stable coins, compared with net proceeds of £35m from the IPO fundraises.
Jonathan Bixby, executive chairman of NFT, said: "NFT has a proven and experienced management team, we have experienced sudden crypto downturns before and we will continue to follow a prudent and hands-on investment strategy that has already been vindicated by the current down-cycle. Nevertheless, growth opportunities in digital assets and NFTs offer considerable potential for generating value for long term investors."