KR1 plc is a leading digital asset company focused on decentralised technologies, providing exposure to innovation and growth of the digital asset industry.
Since 2016, when KR1 plc was started, KR1 plc has primarily been focused on decentralised technologies, in particular, decentralised networks and blockchain infrastructure projects such as Ethereum ("ETH"), Polkadot ("DOT"), Celestia ("TIA"), Cosmos ("ATOM") and others. As the Company has grown, KR1 plc has also become an active participant in staking activities on a range of decentralised networks.
For relevant updates, please have a regular look at our public announcements, which can be found in the Announcements section of the Company’s website. KR1 plc also has a presence on X (@KR1plc) , often sharing updates from relevant projects, relevant announcements and mentions in the media or similar. To have KR1 plc updates delivered directly to your inbox please join our Substack newsletter .
Yes, KR1 plc started detailing its income from staking activities and its underlying holdings through unaudited monthly updates since January 2023. We believe that transparency is important and that timely and accurate information about KR1 plc's underlying holdings and staking activities is crucial for shareholders to understand the company's business.
In line with KR1 plc's public listing on London's Aquis Exchange, the company's results and financial statements are independently audited on an annual basis. To clarify, the monthly updates on the income and holdings of the company are unaudited and based on available information at the time of announcement. All figures provided in these updates are unaudited and are solely intended to offer shareholders a timely update of the company's financial position.
We generate income from digital assets by actively participating in staking activities on proof-of-stake blockchain networks (such as Ethereum, Celestia, Polkadot and Cosmos). Generally, holders of digital assets in proof-of-stake networks can stake their assets as a ‘security deposit’ to participate in block creation, network maintenance and provision of ‘security’ to the blockchain network. The participants engaging in staking then receive staking rewards in the networks’ native token for committing their assets for validation of the network. The income generated from these activities are referred to as ‘income from staking activities’. The staking activities do not impose major overhead or major operating costs to the Company.
As a Company, our aim is to maximise the income generated from our portfolio holdings while also taking a conservative approach to the risk these activities could pose to the Company. The Company may from time to time liquidate some or all of its income generated from staking holdings in the form of digital assets to generate operating cash flows or rebalance its digital asset holdings.
KR1 plc takes a long-term view on its digital asset holdings and the income generated from staking activities. As a permanent capital vehicle, we are 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 for cash and, instead, postpones the realisation of yields until the market recovers. This strategy has often led to a more favourable average realised price of the staking proceeds for KR1 plc versus selling proceeds from staking activities on a daily basis.
We regularly evaluate whether KR1 plc has the appropriate listing venue. Should a decision be made regarding any listing other than AQSE it would, of course, be communicated through the official announcement channels.
The Company’s current and only sponsored public listing of KR1 plc shares is on the APX segment of the AQSE Growth Market in London, United Kingdom. Individuals in markets outside of the United Kingdom and its dependencies should pay attention to the evolving regulatory environment in their respective jurisdictions and are encouraged to take out independent legal and tax advice before making any investment in the Company's shares.
The board of directors of KR1 plc has previously been made aware of KR1 plc shares being traded on the Frankfurt Stock Exchange under the ticker ‘K4H’ and in other markets, including an OTC market in the United States under the ticker ‘KROEF’. None of these listings have been initiated or endorsed by the Company and the Company does not accept any responsibility for these listings. At this time, the Company does not have any plans to engage in any listing activities in Germany or the United States. The Company's shares have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") or with any securities regulatory authority of any state or other jurisdiction of the United States and the Company's shares may not be offered, sold, resold, transferred or delivered, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. Persons (as defined in Regulation S under the U.S. Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compliance with any applicable securities laws of any state or other jurisdiction in the United States. Further, the Company is not registered under the US Investment Company Act of 1940, as amended.
The phrase ‘yet-to-be-determined amount of tokens’ means that in some instances it is not possible for us to detail an exact token amount due to the early-stage nature of the funding rounds, which is common early funding rounds for decentralised networks. Often, details concerning the token supply and its mechanics are only set when a project is close to launch and the project has already completed a major part of its technical roadmap.
In general, we always attempt to provide exposure to and claim assets that KR1 plc may be eligible for and that give material economic benefits to KR1 plc and its shareholders. Historically, examples of this are the distribution of Kusama (“KSM”) tokens considering KR1 plc’s early investment in Polkadot (“DOT”) and the Company’s engagements with various other smaller projects such as Astar’s (“ASTR”) lockdrop or Phala’s (“PHA”) stakedrop. That said, to date, proper support for claiming many of those airdrops is often missing when utilising institutional-grade digital asset custodians or certain digital asset exchanges, as the airdrops require special transactions to be claimed or simply aren’t being implemented and supported by counterparties. Thus, it is sometimes impossible for KR1 plc to access or claim certain airdrops, which can be frustrating but, unfortunately, is the ‘price to pay’ for ensuring proper security of KR1 plc’s assets on the balance sheet. Ultimately, confirmation of whether a particular asset is accessible and owned by KR1 plc can be verified through our public announcements or the details of underlying holdings in the interim and annual reports.
The Company does not currently pay a dividend. The Directors may approve the payment of dividends in the future if it is commercially prudent to do so and subject to the availability of distributable reserves. However, at present, the Directors consider that it is more prudent to retain cash to fund KR1 plc’s activities and that it is therefore not appropriate to give an indication of the likely level or timing of any future dividend payments.