About NFT
NFT Investments Plc was listed on the Aquis Exchange in April 2021 with a market cap of c. £50m as a NFT (Non-Fungible Token) investment fund. Over the following 12 months, various hyped NFT investments were made until the crypto collapse in 2022 - where FTX was outed as ponzi and bitcoin tumbled c. 400%.
In September 2022, NFT announched it was focussing on preserving cash reserves until the outlook for digital assets had improved.
NFT Today
As of August 2023, the balance sheet is composed of cryptocurrency (£27m), a small amount of cash (£2m) and other equity investments (£4m).
| Asset Portfolio | Ticker | Qty | Valution (GBPm) |
|---|---|---|---|
| Bitcoin | BTCUSD | 626 | £14.50 |
| Ethereum | ETHUSD | 6,794 | £9.92 |
| Other Crypto | n.a | n.a | £2.30 |
| Cash | £2.40 | ||
| Equity Investments | £3.80 | ||
| Total Assets | £32.91 |
Regulatory Announcement - 30 June 2023 (updated for latest asset prices)
| NAV Calculation | |||
|---|---|---|---|
| Liquid assets | Crypo + cash | £29.04 | GBPm |
| Shares outstanding | 1,007 | m | |
| Liquid assets/share | 2.88 | pence | |
| Current share price | 1.70 | pence | |
| Implied Discount | 70% |
The Opportunity
Management have already announced a return of capital shareholders slated for April 2024 - after the date of the next bitcoin halving. The Tender Offer is proposed to be up of up to c. 85% of shares outstanding at the higher offer of 3.5p per share and NAV/share.
What you have to believe
- The NFT market doesn’t recover and management return shareholder funds
- OpenSea - the worlds largest NFT trading platform had US$128m of trading volume in July 2023 - almost a record low (compared with $3-4B/month in early 2022)
- Most of the managers are co-founders/affiliates of AIM-listed Argo Blockchain - so perhaps some reputational pressure
- The Crypto market does not collapse
- This does not appear unreasonable - particularly with strong price stability this year, an upcoming halving in April 2024 and renewed rumours of the SEC approving Bitcoin ETFs this year.
Significant Shareholders (as at Aug 2023)
- Jonathan Bixby; Co-Founder and Executive Chairman (6.4%)
-
No other sharedholders >5% holding
- Interestingly Res Privata (a Dutch Family Office) established a stake of c. 3.8% in February 2023 and exited the following month March 2023.