Coinsilium Group Ltd (AQSE:COIN, OTCQB:CINGF), the venture builder, investor and adviser to early-stage blockchain technology companies, said it is not overly perturbed by current market conditions.
In its results for 2021, the company said it ended the year in a particularly strong cash position, with over £1.5mln in cash (up from £173,298 at the end of 2020) and roughly £2.2mln in crypto treasury reserves (predominantly denominated in Bitcoin — BTC — and Ethereum — ETH).
The company noted that crypto markets have been particularly volatile since then with weakening prices seen across the board, but noted the biggest falls have been in tokens related to second-tier and early-stage projects/protocols, whereas Coinsilium’s cryptocurrency treasury reserves are predominantly denominated in BTC and ETH (the top two cryptocurrencies by market capitalisation). While BTC and ETH have not been immune to this current market retracement, Coinsilium would expect them both to lead the market out of an expected recovery, when the time comes.
“Having managed our available resources pragmatically throughout the period, without extending our ambitions too far too soon, we now find ourselves in the fortunate position of being on the right side of the market in a robust cash position,” the company’s chief executive, Eddie Travia, said.
“It is probably too soon to say how long this particular market downturn will prevail, or indeed what its lasting effects might be, we do expect to see some retrenchment and rationalisation within the industry as a consequence, particularly with some of the less developed more DeFi [decentralised finance] exposed protocol projects,” he added.
Revenue from contracts with customers in 2021 more than doubled to £529,812 from £229,772 in 2020.
Total comprehensive income, including fair value gains and losses on financial assets and digital assets, reported a gain for 2021 of £16,143 compared to a gain of £661,139 in the previous year.
Profit before tax fell to £13,774 in 2021 from £309,590 in 2020.
“In summary, whilst the prevailing market conditions will no doubt give some market participants cause for concern, we are currently more focused identifying the opportunities that these conditions will likely present to us as we look to deploy our resources smartly with the aim of delivering long-term growth and value to our shareholders,” Travia concluded.