Member Info for Sausage-dog

In October the following was released. The last paragraph doesn't paint a doom and gloom picture to me. Actually the opposite. You might not be far off with your figures if this is still the case.

Half Year Results 30 October 2020
Key points

• At 30 June 2020 the Group had cash balances of £75.7m, gross borrowing of £345.0m and has since repaid £15m
drawn on its securitisation facility which remains available, subject to lender consent. At 30 September 2020 the
Group had cash balances of £69.9m and gross borrowings of £330.0m
• The Group is continuing to operate within its financial covenants and is in discussions with its lenders regarding
possible covenant waivers in the future
• As soon as agreement is reached with the FCA regarding the methodology for customer redress, the Board will
re-engage with major investors on the terms of an equity raise. Alchemy, the Group's largest shareholder, has
confirmed that it remains supportive of a substantial equity issue and remains actively engaged with the Group
• After careful consideration and despite the presence of a number of material uncertainties detailed below, the
Board has concluded that it remains appropriate to continue to adopt the going concern basis of accounting
• Current trading: since the end of June, loan volumes and collections at branch-based lending and home credit have
been better than previously expected while the performance at guarantor loans is below expectations; as a result,
the Group’s overall financial performance is broadly in line with management’s expectations

Pineapple...The train is leaving. Are you on board?

Thanks Don,
Yes it looks like the information on the LSE site is old and that this was closed in october from your link

SD

The current entry here reminds me of my previous entry on argo blockchain at a similar price point. That was a 35 bagger. The situation was similar. The stock was being shorted/large II's selling, it was out of favour with the market, the product was under regulatory threat. There was full on capitulation which to me is the point of maximal financial return.
Buy when others are fearful, sell when others are greedy as the saying goes. Buy the blood.
The FCA news is key here, however that affects only the GL part of the business. The other 2 parts of the business should still be generating returns in some capacity. My view is that the market has oversold this one even with the possibility of dilution

SD

So purely on TA not FA.
It's fallen so quickly and so far that there are so many inefficiencies within the chart. These include several unfilled gaps. As it's literally plummeted, there are few resistance levels so the SP could move back up as quick as it fell.
The main area of consolidation is the 65p range, so providing the fundamentals are supportive then this could be a target area for longer term investors.
If the data here is correct I do notice that Blackrock Investment UK Ltd still have a 0.65% short still open on the stock. I'd expect this to close very soon as it would be crazy to have this open when the FCA news drops. Short term traders could capitalise on the short squeeze from this event which might be a couple of bags. More if Blackrock are forced to close after positive news lands. All IMO. Once again, all fundamentals permitting.
SD

Wakey Wakey. NSF is looking good this morning.

It would appear there are plenty on the side watching, from this information
https://twitter.com/**********/status/1349725337861595136?s=20

The chart is also looking good for a move north IMO
https://twitter.com/Sausagedog19/status/1349998117769408512

SD

https://www.thetimes.co.uk/edition/business/financial-conduct-authority-eases-brake-on-credit-companies-rxmb6cdlr

Just a casual 1/2 million share purchase this afternoon.
News due. Leaky, leaky?

SD

Blonity is a crypto miner investor who has created an investment model that he shares regarding projected ROI. He bought into KR1 yesterday. His KR1 review is on youtube for those who are interested. The link is

https://www.youtube.com/watch?v=qQ9WpRSy-oI&feature=youtu.be

This should give KR1 a wider audience. As most of his bitcoin miners are based in the US this will also give his US audience an early heads up about KR1. Hopefully the BOD will have something in the pipeline on this front.

SD

IMO if we stay as we are, we will have received a low ball buy out bid by Q1/Q 2021. It'll probably be accepted. 40p. 50p anyone...That's the real risk here.

Too many corporates are currently wanting balance sheet exposure to crypto assets (especially the blue chip ones like polkadot) and we are a sitting duck trading well below NAV on a tumbleweed exchange in a country that barely appreciates crypto. Fact.

The BOD currently have the decision on which exchange we trade. But for how long? As share holders we need KR1 to reach a fair market value quickly or potentially be exploited, pants down..Game over. Yes, you'll ALL make a ROI (as stocks go) but we'll be short changed big time. The assets held here IMO should be worth between $500M+, maybe $1B towards the end of the bull market. That's circa £3-5 a share to you if we trade at NAV, maybe more if polkadot exceeds where I think it will trade at.
We are an absolute sitting duck.

I'll add in some perspective. I trade crypto as well as hold a lot of crypto stocks so I know the market well. While KR1 languishes, my large crypto token trading pot is absolutely mooning. Proper lambo style mooning. Full of similar type holdings to KR1. This week 80% up on polkadot, 55% up on kusama, more on others. Even after paying any tax, this has massively out performed my KR1 Investment over the same time frame mirroring many of the same assets.

Seriously, Botak is right. The SP here is in no way performing in line with how crypto assets are currently trading. So, please can the BOD put the alt coin flipping temporarily to one side (I know it's difficult), and provide the solutions to the above issues so we can be traded at an appropriate market rate.

If the BOD don't put us in that market soon, I won't be surprised to find the assets held here placed on that same market (Northern America/Asia) under ownership by a third party vehicle. And no, AIM or the LSE won't do it. The BOD do have first dibs but the clock is ticking. My fingers are firmly crossed.

But the BOD know all this. That's the bit I can't work out, why they'd accept this. I'll save those thoughts perhaps for later. I'm still hoping for big exchange news to land.

SD

Great post Botak,
You summarise the main deficiencies here very well.
The KR1 BOD are great at picking the next gen blockchain projects. The assets they hold have phenomenal potential particularly the polkadot/ksm holdings. My personal opinion is that with the recent NED appointment that they have recognised their weaknesses and are doing something about it but it'll take time.

It is frustrating to see Polkadot and Kusama greater than 20% up in token price and yet no movement on the KR1 share price.
If I was on the BOD i'd be on the phone to Hewie at Kiyo Capital. For a sum in the region of $30K he might be able to get us a US OTC listing, given that he was the one responsible for the Argo OTC listing last week.
Or maybe, just maybe the BOD are ahead of the game and have a more permanent crypto friendly exchange (TSx,US,Asia) planned for 2021?
But, i agree. BOD, please put the alt coin flipping to one side and concentrate on the main issue here which is the exchange issue.

SD

A simple message francobrett,

1. Get a US OTC listing for Kr1 and you'll see 90%+ within hours on the share price (like the only other UK listed crypto miner has done this morning)
2. Polkadot is moving (Up 20% yesterday)
3. Looks like word is getting out about KR1. 36 trades in a few hours today.

HODL

It looks like we are still in the early adoption phase (13.5%) for UK investors with bitcoin so we are all still very early. Remember BTC is a 10 year old 1st generation, simple piece of code that serves purely as a store of value. The very first and best defi project, so I expect BTC/Arb will do really well. There is more risk in not owning bitcoin IMO.

For those with more interest in crypto, peel back the onion layers and look deeper and you'll see what the 3rd generation of blockchains can do. Phenomenal world improving use cases at millions of transactions per second not just 7. These are very exciting times, particularly if you find the "bitcoin in 2010" type crypto in its infancy.

GLA
SD

So my two big UK crypto power houses ARB and KR1 have got a big year ahead of them in 2021. For those that don't follow the recent events at Arb I'll summarise recent events that may have an impact here. There is no intention to cross ramp.

Argo blockchain (ARB) which many of you will also hold has had an absolutely crazy run recently. Part fuelled by the recent BTC run but also part fuelled by the fact that some US broker has only last week set up the stock across the pond on pink sheets. The US OTC is going bonkers for the stock and I believe it's not that expensive to have a US OTC listing ($30K). The stock only this week was trading at 5X the UK price.
Clearly there is a different valuation perspective on crypto by our US counterparts, with the UK market not completely understanding the future vision and use cases.
I am almost certain that the KR1 BOD are following the massive Arb UK share price movements off the back of the US trading link with interest particularly given that a dual US listing may be on the cards there.
Closing the circle on this observation, I would not be surprised if a similar reaction occurred here if the KR1 stock was to be made available via an OTC or formal dual listing to a market that has a more realistic valuation perspective on crypto.

My next point is that traditionally the money cycle in crypto flows from BTC to the major alts (Ethereum/now polkadot). With Ethereum:btc looking like its bottoming out and the majority of the historical Ethereum rallies against bitcoin coming in late December/early January each year, I am hoping that we should shortly see a big move north with polkadot. This would be in addition to parachain news driven dot price increases (Q1 2021 onwards).
On the money cycle point, I'd expect a lot of now very rich UK crypto investors (from Arb/bitcoin) to start to derisk/diversify their portfolios into other crypto projects. KR1 comes to mind (for their major alt exposure).
I was also delighted to see the KR1 SP last week move so quickly on little buying pressure. No many sells were appearing so my take was that the holders here were HODLing KR1. I think the consolidation period with KR1 is over and new entrants will be forced to pay premium for a seat here for this reason.
Regardless of what happens with bitcoin dominance, I feel that the polkadot ecosystem will be too strong and has too many use cases.
I'm looking forwards to 2021 with Kr1. Lots and lots on the cards and plenty happening in the polkadot ecosystem. "Wexboy" on twitter is definitely worth a follow for his technical analysis of the Kr1 portfolio if new investors want to see more substance/numbers.

GLA
SD

Great polkadot update. Just throwing some numbers around in my head which i will share here:

So we own 3.5 million dot which is equivalent to 0.35% of the entire dot ecosystem. We own more of the kusama ecosystem as those tokens are yet to be sold.
Staking returns are between 10-20%: At 10% we generated $1million over 6 months, passively, minimal expenses, no machine depreciation etc like other miners.
When the parachain auctions start in Q1 2021 (next month potentially) the token will be in demand for projects trying to win a parachain slot. Supply shock, driven dot token price appreciation is the subsequent result.
At the recent polkadot decoded event they predicted their treasury reserves would be worth 6X from todays prices which equates to 30 usd a dot. At $30 a dot token next year getting 400K dot tokens staking returns annually that's a passive income of $12million to KR1 JUST from polkadot. Add in the kusama returns and the others. At a PE ratio of 10 this could add $120Million to the mcap here from dot staking returns alone. Add in the price of the 3.5million staked dot at $30 a token and you have $100Million in tokens also.
Very easily within 12 months just the dot holdings here should be worth approx $220Million=£170million which is roughly a share price of £1.30. The kusama will add another 30% to this, and then there's the rest.
It makes a 20p entry look very cheap to me.
GLA
ps: please stop selling dot tokens. Compound staking returns sounds more appealing to me and I want my own dot bag to moon earlier please. ;) KR1=dot whale.

KR1 PLC

(“KR1” or the “Company”)

Update on Revenue from Polkadot Staking Yields

KR1 plc (KR1:AQSE), a leading digital asset investment company, is pleased to provide an update on the Company’s revenue from staking activities on Polkadot (“DOT”). KR1 has generated a further 141,564.69 DOT since the last staking update announcement in August 2020, all of which have been sold at an average price of US$5.63 per DOT token, realising US$796,942.58.

KR1 has generated more than 194,631.69 DOT from staking yields over the last six months since Polkadot migrated to a ‘Proof-of-Stake’ network on 18 June 2020. The Company has now realised the entirety of its generated DOT staking yields to date, which netted the Company a total of US$991,745.54. The Company plans to maintain its staking of a large majority of its DOT position to continue generating revenues for the Company’s operations going forward.

The Company takes a long-term view on the price of DOT, 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 US$5.63 per DOT token for this Polkadot staking revenue update, versus an average daily price of US$4.67 per DOT token if the Company had sold its yields on a daily basis.

As at the date of this announcement, KR1’s total holding of Polkadot tokens is 3,498,842.45 DOT after the realisation of all staking yields.

George McDonaugh, Managing Director & Co-Founder of KR1 commented:

“A healthy flow of staking income without any capital expenditure allows us to take full advantage of the growing excitement in the digital asset markets. Once again, we have been very successful in achieving great average prices for realising the Company’s staking yields with our strategy to time market conditions. The momentum in the Polkadot ecosystem has been very encouraging, with a major surge in community participation and new features like Polkadot’s ‘parachain auctions’ and cross-chain communication coming closer to release.”

The Directors of KR1 plc accept responsibility for this announcement.

--ENDS--

For further information please contact:

KR1 PLC
George McDonaugh
Keld van Schreven
Simon Nicol
+44 (0)16 2467 6716

simon@KR1.io
Peterhouse Capital Limited
Mark Anwyl
Allie Feuerlein (AQSE Corporate Adviser)
+44 (0)20 7469 0930
Nominis Advisory Ltd
Angus Campbell (PR Adviser)
pr@KR1.io
About KR1 plc

I agree. The upside is tremendous. This technology will be tomorrows engine for the finance industry, web 3 and then enterprise adoption will occur. Decentralised, autonomous trust.

The Kr1 boys have a seat at the seed investment level table. These seed investments tend to 5-10x before they get to the private/public rounds and then if the project is a winner there will be an even higher level of return just like with polkadot.
The market is totally asleep on this one and the KR1 boys, you, me and a few others here know it.
I'm making the most of it as these opportunities are rare IMO.

Thats a nice starter once they announce the process however let me share some info I read. One of the developers/admins in the Kusama telegram group is anticipating a ksm token price in the future once most parachains had been bonded (so in 7-8 years) of between $30-50k per token. Yes, there is a "K" there.
I did laugh when I read it, however on reflection he's involved in the project and I'm not. What if he's even remotely close?
Bitcoin went from sub $1 to $20K. Ethereum went from a couple of dollars to $1300.

Thanks Botak. It's nice to share thoughts here.
I've got quiet a few alts, many of them staked, liquidity mining or sitting in a metamask or ledger wallet. Youtube is very useful for learning about crypto assets and transfers. If you go down that road just be careful as it's easy to lose your crypto with a silly mistake or typo to the wrong address.
I see Kusama being the "business" blockchain and polkadot being the "government, banking, high security" ecosystem. I see Kusama outperforming dot from here (based on their mcaps) and hold more ksm than dot but they are 1 and 2 in my portfolio with Btc and ethereum closely behind.
The parachain auctions are really interesting. There are 100 ish slots with a few slots being released every few months from Q1 2021. If you do the maths that's 12 slots per year over 8 years. Each slot needs to lock ksm or dot tokens (depending on the platform used) for a 2 year "contract". 50% of ksm/dot will be staked and roughly 30% will be locked so you'll only ever have 20% available for trading. This is clever as it will cause a supply shock and the respective token price will rocket and stay there. There will be a gradual supply shock and hence an 8 year price demand driven price rise.

Given that the crypto bull market is based on a 4 year halving with a rag to Riches token price I feel that ksm/dot will be somewhat separate price wise to the rest of the market due to the way the demand for tokens works.
It may well be that you won't need to dump your dot/ksm tokens when bitcoin peaks.
It makes KR1 an ultimate crypto play whilst others such as bitcoin miners (argo) where you'd probably try and time the peak for returns.
I'm happy to sit back on my KR1 shares for 8-10 years. I won't give away my price expectations here as investors will laugh and think I'm mad. It's a lot however.
The market will find this gem and it won't be undervalued for ever. I look at it as a gift to accumulate more. The biggest risk is not the market finding appropriate value here but the vultures who will realise what kr1 holds here, whom might swoop to try and get it cheaply whilst the market sleeps. I am some what reassured that the talented crypto guys here are recruiting the business heavyweights to the BOD so that together they can outflank any corporate nonsense and protect the share holders like us who share their vision and support them.

Cheers
SD

When I was first assessing this share I posted my thoughts here about the pros and cons. I very much had the exchange as the biggest con, however on reflection it ended up being one of the advantages for finally securing a big bag of KR1 shares.
I flip then odd alt coin and some of my biggest returns have been low liquidity, unheard of alts stuck on some god forbidden exchange where no-one understands the project and can't find it.
Throw in the mix an exchange that not all retail investment platforms use and you've got the perfect barriers to investment.
This crypto stuff is also SO complex to understand that it puts off the average investor.
This is not good long term BUT perfect me for In order to build a position without the herd arriving. I'm pleased to say that my Kr1 bags are packed.

The polkadot ecosystem is one my favourites and I'm dull enough to have watched the recent polkadot decoded event. What is being built here is absolutely incredible. They say that the number of devs working on an ecosystem gives a clue as to the ones that will succeed and it's no surprise to see dot/ksm have the most devs regularly working on them.
For those who don't trade crypto much I've posted some interesting dot/ksm TA https://twitter.com/Sausagedog19/status/1339260232577527815

Basically Dot should break out against bitcoin shortly and it should also follow the Kusama price action which you will be pleased to hear is linear on a logarithmic curve. Yes, that's EXPONENTIAL price growth when priced in USD. If dot does follow the path of Kusama then $9-$10 DOT should be achieved within the next 4 weeks so if correct expect 40p KR1 in January.
I don't expect the exchange to be a problem long term as I think they'll be on multiple exchanges at some point (nasdaq pretty please!). The guys here have made one phenomenal polkadot investment and the market will find value here eventually especially if polkadot/kusama become the go to blockchain ecosystems in the future.
Oh, and the parachain auctions allegedly hit Kusama in January so an announcement should land any day now which should ignite the token price further. Obviously I've ignored the other great projects that KR1 have invested in, which deserve detailed posts individually, maybe later.
So, basically I feel this company has some great potential and currently offers a NAV discount and is difficult to get hold of, but once you've negotiated the hurdles to accessing kr1 then your investment should do very well IMO.
Lot's of recent action on the NED/investments/additional exchanges also look very promising.
GLA
SD