NFT Investments PLC Fund update and proposed return of value (4475T)
20 Mars 2023 - 8:00AM
UK Regulatory
TIDMNFT
RNS Number : 4475T
NFT Investments PLC
20 March 2023
Press Release
20 March 2023
This announcement contains information which, prior to its
disclosure, was inside information as stipulated under Regulation
11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310
(as amended). Upon the publication of this announcement via a
Regulatory Information Service, this inside information is now
considered to be in the public domain.
NFT Investments PLC
("NFT Investments" or "the Company")
Fund update and proposed return of value to shareholders
NFT Investments (AQSE: NFT), an investment firm specialising in
the market for non-fungible tokens, is pleased to provide the
following update to the Company's corporate strategy and
cryptocurrency investments.
Fund Performance
The Company has an unaudited net asset value of GBP36.3 million
(3.61p per share) as at 20 March 2023, including GBP28.8 million
(2.87p per share) in liquid crypto. The current share bid price is
now 58% below the Company's net asset value ("NAV").
Investment Rationale
As previously announced, the Company's fund is now over 90%
invested with over GBP28 million in liquid crypto. The rationale
for these investments was based on the historical price of BTC
relative to the BTC halving timeframe.
Over 19 million or over 92% of all BTC has already been created.
The rate at which new Bitcoin is created decreases by half every
210,000 blocks mined, or roughly every four years until all 21
million Bitcoin have been mined. The next scheduled halving will
take place in April 2024. The historical data suggests that BTC
hits new highs approximately three to four months post halving.
Proposed return of value to shareholders
The Company's directors have concluded that the correct approach
to the widening share price discount to NAV is to return value to
shareholders and the current intention is to do so after the BTC
halving currently scheduled to take place in April 2024. In the
opinion of the directors, shareholder value can best be achieved by
the Company trading out the entirety of its current liquid
positions at the right time and then returning capital to
shareholders. The Company currently intends to achieve this by
purchasing its own shares through a tender offer under which
shareholders would have the opportunity to sell shares on a
pro-rata basis. A purchase of shares by tender offer would be
subject to both shareholder approval and the consent of the Court
to a reduction of capital required to create distributable
reserves.
This goal of returning shareholder funds will be accompanied by
a quarterly trading update in which the Company will publish its
holdings of all tokens and prices on the first business day of each
quarter beginning on 3 April 2023.
The directors believe that these transparent actions coupled
with a willingness to ultimately return capital to shareholders is
the best approach given the wide discrepancy between the Company's
NAV and its current share price.
Crypto Security Update
The Company has no exposure to Silicon Valley Bank and is
holding all its crypto assets in cold storage wallets in secure
locations across multiple continents. The Company currently has no
online crypto exchange exposure.
The Company is pleased to announce that progress has continued
the recovery of the 250K GBP USDC that was announced on 12 January
2023. the Company has been granted the right to serve legal
documents to the now frozen USDC wallet and anticipates that
summary judgement will be completed in 60-90 days. The Company
remains positive that it will recover all the funds as part of this
legal process.
Jonathan Bixby, Executive Chairman of NFT Investments,
commented: "Our focus has always been on maximising shareholders
return and it has become clear that a commitment to returning
capital in the form of our growing liquid crypto portfolio (2.87p
per share) is the best way to do so given our continued discount to
NAV. We are delighted by our timing and the subsequent positioning
of our crypto treasury which is now a majority invested in liquid
crypto assets like BTC and ETH. We remain in service to maximising
shareholder return and will keep the market regularly updated
moving forward towards the next BTC halving."
The Directors of NFT Investments PLC take responsibility for
this announcement.
For further information please contact:
NFT Investments
Jonathan Bixby
Executive Chairman +44 7876 888 011
-----------------
First Sentinel
-----------------
Corporate Adviser
Brian Stockbridge +44 7876 888 011
-----------------
Tennyson Securities
-----------------
Corporate Broker
Peter Krens +44 207 186 9030
-----------------
About NFT Investments:
NFT Investments PLC is an incubator specialising in the market
for non-fungible tokens ("NFTs") and is the first ever NFT vehicle
to list in a major jurisdiction worldwide. The Company invests in a
diversified portfolio of NFTs, cryptocurrency, and/or in companies
or funds which have exposure to NFT or blockchain technology. The
Company's leadership team have an extensive track record in the
cryptocurrency sector and previously founded Argo Blockchain PLC, a
global crypto miner. NFT Investments is headquartered in London, UK
and its shares are listed on the Aquis Stock Exchange Growth Market
under the ticker symbol NFT. https://www.nftinvest.pro/
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