NFT Investments PLC - Fund update and proposed return of value

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 £36.3 million (3.61p per share) as at 20 March 2023, including £28.8 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 £28 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:

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/