Member Info for Wazz80

This company is getting devalued due to the annual management charge every year, payable no matter what they deliver. They haven't minimal, if any, new early stage investments for years that would suggest they are making any real effort with the company, nor are they looking to do anything innovate like become a treasury company and raise new money to acquire assets that are mature in the market. Let's hope it's because they are poised and ready to make a big move to add value after some pending regulatory clearances (AIM market not yet open to them), but the silence is suspicious......

They are still talking a good game in the accounts and I think they've got a reputable audit firm.....

This is casting a cloud over management. Why can't they attract investors at this price? They have issued an RNS authorising them to buyback shares where there is a big discount to NAV, they should be doing that now and making announcements to defend what is going on.

Yes - there's not enough disclosure on the timing of when some of these pre-launch ones are coming to market. I would also love to know more about what is happening with the Zee Capital II portfolio (i.e. what is the $7m invested in...), they really should be disclosing more news than they are doing as the NAV of the liquid/trading portfolio isn't necessarily what we need to know as that can be calculated now in real time.....come on KR1 directors, do the right thing!!!

I really do think this company should transition itelf into a Microstrategy and raise money to invest in the winning tokens, not just do early stage - the market has moved on now and its about which ones will commercialise and these guys are well placed to make educated investments on that. DOT is in an arms race with AVAX for example. Why not invest in some of these too - as you say, if they could diversify some of their DOT and TIA then that would be great.

Anyone fancy guessing what the staking revenue for November is going to be - bearing in mind the price increases combined with the fact that both Polkadot and Cosmos seem to be staking at 14% p.a. - let alone the other stuff (ETH etc). It could be £2m in a month?

The monthly report seems to come out at the end of the month? It would be nice to get an RNS announcing something spectacular pre-xmas, I think that's entirely possible as this is also their financial year end so there's a benefit to them in getting some good news out there now.....it's been a while since any real investment activity has moved the dial here (not since Celestia about this time last year...)

Yes I agree, some disclosures in the half year accounts where they discuss latest developments.

Just seen the move on MODE, this is a token they invested $0.5m in a few years ago, it launched into the market this year and the value of KR1's tokens is c$5m. This shows what value there is that is currently not accounted for in the books across the whole equity holdings, including in Zee Capital. This could easily main market LSE list at a big premium to net assets, not a discount.

I think the price of uranium dropped when Goldman Sachs opened up an options book on it earlier in the year. The price was at ats high in February when this news came out. Since then I think they've been keeping a lid on it. It will rise once the money markets let it go back up.....This news yesterday/today on fractionalised trading through Tevos crypto might be the trigger we need. https://www.reuters.com/markets/commodities/goldman-hedge-funds-step-up-activity-physical-uranium-prices-spike-2024-02-20/#:~:text=Goldman%20Sachs%20has%20started%20writing%20options%20on%20physical,it%20has%20created%20a%20derivative%20for%20the%20metal.

Thanks for this. I sense alot of the big retail compensation payouts were a function of time we've been living in, everyone a victim etc, with the push to the right politically, I sense that the courts will not be so sympathetic anymore to consumers and so I'm expecting this to work out just fine for close brothers and others. Bullish for that reason that now the downside has been fully priced in.

Anyone have a view on the risks here? Why is it trading at such a a big discount to the fair value of its cryptos? Why isn't there anybody else buying it other than me?!! I've calculated that this is a NAV of over £1.10 (trading at 85p), and that excludes the pre-launch value in the investments that have yet to launch? Is it that the small coins are actually worth noting, despite the apparent market value in the books? Is it to do with the directors 20% profit share? I don't think they will get anything this year though as the value was so high at the start of the year?

I don't think so, they will definitely hold liquidity on account - but that shareholding should be the gross value of their clients. I don't think we appear on the share register, the fact that we don't get invited to meetings/receive paperwork etc probably shows this to be true. I think they hold the shares as custodian on our behalf. Anyone else know for sure?

Yes. As I understand it HL means all the retail investors like you and me who have invested on the platform. Is it available on other platforms like AJ Bell etc do you know? Reflexivity is the shares issued to the directors. As I understand it, Vidacos is a nominee company for Citigroup - so it would be good to know who/what is behind this 25% share......i really hope these directors act in good faith over this....there really should be a market announcment now about the price moves and how it impacts its valuation. I also think an update on the Zee Capital investment would be good too.

Could you tell me more about this Albus.

Yes, the spread on the bid/ask is too high for traders to use this as a trading vehicle unfortunately, that will change though as soon as this gets recognised for its undervalue. I calculated this morning that the top10 shares alone are now worth £168m.....which is 95p per share. That's without any unrealised gains on the start up investments and Zee Prime (which from what I can see has invested in that new betting site (Polymarket...).........

There's reference in the directors report in the half year accounts to working with government and the rules currently being that these assets cannot be listed, which they are hoping will change in the near future. The big signal though is that they have released these half year accounts for the first time, this shows they are preparing for a listing now. Also, they've tidied up the B and C shares recently.......all looking good in my opinion.

Anyone notice how TIA seems to go up when the market goes down?!

It just can't get the mainstream money into it as it's not listed on the LSE yet, only on this Aquis. No broker would recommend it and no fund is allowed to buy it I think. However, they do seem to be lining up to get a proper listing as soon as the regulatory hurdles are crossed. Until then, suck it up!!

I estimate the NAV today to be 108p. Hard to value the Zee Capital II stake.....that seems to be a hidden gem to me? Anyone done their research on those guys, KR1 put $7m into them in 2022 and value pretty much the same in books now.....