Back to all announcements

DJ KR1 plc Update on Revenue from Cosmos Staking Yields

 
TIDMKR1 
 
17 March 2020 
 
                                    KR1 plc 
 
                           ("KR1" or the "Company") 
 
                 Update on Revenue from Cosmos Staking Yields 
 
KR1 is pleased to announce that the Company has generated a further 54,194.25 
ATOM from staking activities since the last staking update announcement in June 
2019, of which 37,274.63 ATOM were sold at an average price of $4.51 USD per 
ATOM token, generating $168,197.12 USD for the Company. 
 
KR1 has generated a total of over 76,665.25 ATOM from staking yields in the 
twelve months since the Cosmos network launch on 14 March 2019. The Company has 
realised a total of 59,745.63 ATOM of this at an average price of $4.86 USD/ 
ATOM, which netted the company a total of $290,447.12 USD in realised accrued 
revenue from staking yields with some ATOM still sitting on the balance sheet 
and capable of generating future revenue. The Company plans to maintain its 
staking of a large majority of its ATOM position to continue generating 
revenues for the Company's operations going forward. 
 
The total amount of ATOM generated is highly dependent on the percentage of 
participants in the network that are actively staking their ATOM. Whilst KR1's 
returns have been strong, a higher than initially anticipated percentage of 
ATOM were staked by other participants due to the popularity of the network, 
which led to nominal staking returns being lower than originally estimated in 
the Company's 'Revenue from Cosmos Staking Yields' announcement in May 2019. 
 
The Company takes a long-term view on the price of ATOM, implementing a 
strategy where if the asset price is under pressure and below a certain price 
threshold, the Company will not liquidate its accruing staking yields and 
postpones the realising of yields until the market recovers. This strategy has 
led to a more favourable average realised price of $4.86 USD/ATOM, versus an 
average daily price of $4.07 if the Company had sold its proceeds on a daily 
basis. 
 
George McDonaugh, Managing Director & Co-Founder of KR1 commented: 
 
"The Company made a strategic decision in early 2017 to seek out innovative 
projects and networks that feature Proof-of-Stake as their core security model, 
such as the much anticipated Polkadot network, the Dfinity project and various 
other projects including Enigma or Bluzelle. Further, our strategy to hold onto 
our ATOM below a certain price threshold has greatly improved our average exit 
price. We're making the very most of this successful investment and believe 
that in the uncertain times ahead, income from a yield-bearing portfolio could 
be very significant." 
 
=-ENDS-- 
 
For further information please contact: 
 
KR1 PLC 
 
George McDonaugh                                       +44 (0)16 2467 6716 
 
Simon Nicol                                                     simon@KR1.io 
 
Peterhouse Capital Limited                         (Aquis Stock Exchange 
Corporate Adviser) 
 
Mark Anwyl                                                     +44 (0)20 7469 
0930 
 
Allie Feuerlein 
 
Nominis Advisory Ltd                                     (PR Adviser) 
 
Angus Campbell                                                 pr@KR1.io 
 
About KR1 plc 
 
KR1 is a leading digital asset investment company supporting early-stage 
decentralised and open-source blockchain projects. Founded in 2016 and publicly 
traded in London (KR1:Aquis Stock Exchange), KR1 has built a notable reputation 
for generating significant returns by investing in many key projects that are 
designed to power the decentralised platforms and protocols that are emerging 
to form new internet infrastructures. 
 
www.KR1.io 
 
Market Abuse Regulation (MAR) Disclosure 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulation 
(EU) No. 596/2014. Upon the publication of this announcement via a Regulatory 
Information Service, this inside information is now considered to be in the 
public domain. 
 
 
 
END 
 

(END) Dow Jones Newswires

March 17, 2020 06:36 ET (10:36 GMT)