KR1 PLC (AQSE:KR1) told investors it has staked US$5mln into Starry Night Capital, an investment fund focussed on high-profile NFTs.
“The investment in Starry Night provides KR1 and its shareholders the best possible exposure to the booming but still nascent NFT market category,” managing director George McDonaugh said in a statement.
KR1 highlighted that Starry Night’s portfolio includes the first authorised ‘Pepe the Frog’ NFT by creator Matt Furie as well as prominent artworks by XCOPY, a Beeple TIME Magazine cover and NFTs from Tyler Hobbs’ Fidenza algorithm.
The company has invested US$5mln through a subscription of shares in Three Arrows Fund Ltd, which launched Starry Night alongside pseudonymous NFT collector ‘Vincent Van Dough’.
“Successful investing into this fast moving and creative ecosystem requires highly specialised knowledge, making it the right move to partner with the outstanding Starry Night team,” McDonaugh said.
“As NFTs continue to grow, both, in cultural significance and as a recognised asset class by legacy institutions, we are confident that our participation in the Starry Night fund is going to deliver great returns over time.”
Janos Berghorn, KR1’s head of research, meanwhile, added: “As a first-mover and with an influential network, Starry Night Capital is positioning itself as one of the category defining participants in the NFT sector.”