Full Year Results
Summary by AI BETAClose X
KR1 plc
Tuesday, 28 April 2025
KR1 plc ("KR1" or the "Company")
Audited Results for the Twelve Months Ended 31 December 2025
KR1 plc (LSE: KR1), a digital asset technology company, is pleased to announce its audited results for the twelve months ended 31 December 2025 ("FY25").
Infrastructure Income Highlights
- Infrastructure income of £4.8 million for FY25
- A decrease of 62.3% on FY24 (£12.8 million)
- Income was derived from the Company's Technology Infrastructure operations, encompassing staking activities across Ethereum and other major proof-of-stake networks and represented 99.1% of the Company's total income from digital assets
- Main networks contributing to Technology Infrastructure income for FY2025:
- Staking activities on Polkadot (£2.0 million)
- Staking activities on Cosmos (£1.2 million)
- Staking activities on Celestia (£1.1 million)
- Following the year end, the Company introduced its Financial Infrastructure Strategy, with a view to generate yield and further diversify its income streams, including Nexus Mutual underwriting and liquidity provisioning activities across Bitcoin, Ethereum and other holdings
Holdings & Net Asset Highlights
- Largest five digital asset holdings as at 31 December 2025, reflecting the Company's strategic portfolio positions:
- Ethereum via Lido ("stETH"), £11.3 million
- Polkadot ("DOT"), £7.2 million
- Nexus Mutual ("NXM"), £5.8 million
- Lido ("LDO"), £5.0 million
- Redstone ("RED"), £4.0 million
- As at FY25 year end, net assets of £49.6 million, representing 27.93 pence per share
- A decrease of 64.4% on FY24 year end (£139.4 million and 78.76 pence per share), reflecting the decline in digital asset valuations across the period
Strategic Highlights
- Successful admission to the Main Market of the London Stock Exchange in November 2025 concluded a multi-year programme (expenses associated with the listing migration totalled £1.7 million), broadening institutional eligibility and establishing the platform for the Company's next phase of development.
- KR1 operates across three complementary strategies
- Technology Infrastructure operations, building on the Company's established staking activities across major Proof-of-Stake networks;
- The recently introduced Financial Infrastructure operations, focused on selectively deploying holdings, including Bitcoin and Ethereum, as productive assets into financial protocols to generate income;
- Venture & Strategic investments, investing in early-stage opportunities and managing the Company's digital asset holdings with a focus on medium to long-term capital-growth
- KR1 is positioned well for the next phase of blockchain adoption, as stablecoins, tokenised real-world assets, decentralised finance and AI are growing demand for open, decentralised infrastructure.
Outlook
- KR1 continues to concentrate capital towards infrastructure networks and protocols that the Company believes are best positioned to benefit from the next decade of onchain adoption.
- Into 2026, the Company is focused on increasing institutional visibility, improving market understanding of its business model and the active role it takes in onchain infrastructure
- The convergence of AI with onchain infrastructure is, we believe, a structural demand driver of a different order of magnitude to anything we have previously observed
Chairman's Report
We are pleased to present KR1 plc's Annual Report and Financial Statements for the twelve months ended 31 December 2025.
This marks our first set of full-year results following the Company's successful migration to the Main Market of the London Stock Exchange. The migration of the Company's listing reflects the maturation of KR1 plc's operations and underscores the ongoing commitment to rigorous corporate governance, transparency and providing institutional-grade exposure to the digital asset industry on the London public markets.
While 2025 has been a challenging year in the digital asset markets, resulting in decreased income and net asset value for the Company, we continue to generate a robust income from our operations in the digital asset ecosystem, testament to the resilience of our strategies.
For the twelve months ended 31 December 2025, KR1 plc generated £4.8 million in infrastructure income as compared with £12.8 million for the previous financial year. The infrastructure income originated from staking activities and represented 99.1% of the Company's income from digital assets in 2025 as compared with 98.3% in the previous financial year.
Further, as at 31 December 2025, the net asset value of KR1 plc was 27.93 pence per share as compared with 78.76 pence per share a year earlier and the net asset value of the Company was £49.6 million, as compared with £139.4 million a year earlier.
In total, the Company reported a loss per share for the year of 20.23p as compared to earnings per share of 4.43p in the previous financial year.
However, looking ahead, the Board shares a strong sense of optimism. We are diligently executing the strategy outlined in our Prospectus and recent communications, with KR1 plc being best placed to provide credible digital asset exposure on the London public markets. Further, we remain confident of our ability to deliver long-term value to our shareholders through the Company's active operations and involvement in Ethereum and other networks and protocols shaping the digital asset industry today.
On behalf of the Board of Directors, I thank all Shareholders for their support.
Sincerely yours,
Rhys Davies
Chairman
Managing Directors' Report
On 25 November 2025, KR1 plc became the first, and to date, only diversified digital asset company listed on the London Stock Exchange. This was a historic moment in the digital asset industry and for public markets in the UK, and a pivotal moment for the Company.
The demands of the listing process, including the ongoing dialogue with the FCA, and active policy engagement, meant the transition from the Aquis Growth Market to the LSE Main Market was a significant undertaking, absorbing substantial management resources and operational capacity. This limited the capacity of the Company to materially expand business operations, strategy and investments. KR1's diversified approach sets it apart on the public markets, a distinction we believe will become increasingly significant as institutional demand for onchain infrastructure exposure grows.
The financial results for 2025 reflected both the operational demands of this listing process and the difficult market conditions that prevailed throughout. The financial results for 2025 reflected both the operational demands of this listing process and the difficult market conditions that prevailed throughout. The surge in institutional inflows that drove Bitcoin to successive highs via ETFs proved narrowly contained. Ethereum benefited to a degree, but capital largely stopped at the ETF wrapper and did not rotate meaningfully into the broader innovation digital asset ecosystem, leaving the rest of the market and the majority of our holdings largely behind. The broader digital asset market also suffered from the 10 October 2025 liquidation event, from which many participants are still recovering.
Throughout the financial year, our Net Asset Value per share fell from 78.76 pence to 27.93 pence over the course of the year, and total Net Assets shrunk from £139.4 million to £49.6 million. Infrastructure income, from staking activities, compressed from £12.8 million in 2024 to £4.8 million in 2025, reflecting a loss of investor appetite in risk-on assets as the economy stalled, Trump's tariffs took effect and geopolitical tensions persisted. We weren't alone, every major digital asset investor and operator felt the strain of the broader market climate.
Now, in 2026, with confidence returning to the market, we are operating from a position of real momentum. As the first diversified digital asset company operating on the LSE, with our operations around Technology and Financial Infrastructure alongside the Venture and strategic investments facing-side of the Company firmly in place, we are in the strongest position of our decade-long history.
We enter this next phase not as a new entrant, but as an established operator with deep domain expertise, extensive network relationships and live infrastructure operations across a range of networks and protocols with a diversified balance sheet of productive digital assets actively shaped to reflect where we believe the most significant wave of demand has yet to arrive. Unlike passive Digital Asset Treasury companies or Exchange Traded Funds (or Notes) that rely solely on market movements, KR1 is an active, operational and income-generating operator at the frontier of the onchain economy that we believe will define the next decade.
With the launch of our Financial Infrastructure operations since the start of the year, KR1 entered a new and important phase of its evolution, establishing a dedicated and growing stream of income that sits alongside our Technology Infrastructure operations, where we have been powering decentralised proof-of-stake networks since 2019 as well as our venture activities since the Company's inception. Initially anchored in Bitcoin and Ethereum yield strategies, this operation is building toward and operating what we believe will become the essential layer of global asset movement, activities we refer to collectively as 'Onchain Infrastructure'.
As part of our operations, the Company has utilised an allocation of its existing Nexus Mutual holding to participate in staking pools, supporting a select group of established and rigorously vetted protocols within Ethereum's decentralised finance ecosystem to generate income from this holding. However, this represents just the first steps on the Financial Infrastructure front, we are not stopping with Nexus Mutual and are working on adding additional income streams across other protocols in the near future.
The convergence of AI with onchain infrastructure is, we believe, a structural demand driver of a different order of magnitude to anything we have previously observed. AI agents, autonomous systems capable of managing capital and assets without human intervention, require programmable money, verifiable data and tamper-resistant execution environments that centralised financial infrastructure is fundamentally ill-equipped to provide.
Blockchains, and Ethereum in particular, are purpose-built for the agentic economy. Ten years mature, global and permissionless, Ethereum carries the strongest network effects, the largest developer ecosystem and the deepest application layer of any smart contract network. It is the settlement layer of choice for machine economies, with developments such as the x402 micropayment standard and a growing ecosystem of onchain agent frameworks cementing that position. KR1's substantial Ethereum holding (through Lido Staked ETH) already provides meaningful exposure to this theme, and we are building on that foundation deliberately. It represents the natural next step for a company that has spent a decade at the frontier of decentralised networks, and we believe the timing, as autonomous agent activity and compute begins to scale onchain in earnest, could not be better.
Further, through our Zee Prime II specialised fund holding, we already have existing look-through exposure to Gensyn, a decentralised AI compute network aggregating idle GPU and CPU resources into a single verifiable compute layer, an early and considered entry into machine learning infrastructure at the heart of the agentic AI boom. Networks like Gensyn are important as they remove single-point-of-control risk from the intelligence layer, critical as global reliance on AI deepens.
On the broader AI and crypto convergence, we are actively evaluating and researching opportunities and operational strategies. It is worth noting that distributed compute is not a new theme for KR1. Shortly after KR1's inception in 2016, we backed Golem, one of our earliest investments, and our renewed interest is a continuation of long-held conviction. What is new is the convergence of decentralised compute alongside agentic AI, and the scale of the opportunity it presents. We are fully focused on this convergence, and we have rarely felt more energised about what lies ahead. As AI grows in global importance, the imperative to decentralise it, to eliminate fragility, reduce single points of failure, and return power to open networks becomes ever more urgent. This has been KR1's core thesis since 2016, now applied to what may be the defining technology of our time.
As this new frontier develops, AI demand directed at the digital asset settlement layers, oracle networks and data availability protocols that KR1 already participates in and operates could represent a wave of adoption that is, today, difficult to fully anticipate. Against this backdrop, we are in the final stages of launching KR1's dedicated network infrastructure operations in the form of validators on Ethereum. As onchain activity scales across tokenisation, stablecoin volumes and decentralised AI, validator rewards and fee generation follow, and this infrastructure expansion positions KR1 to capture that upside directly. It represents the natural next step for an operator that has spent a decade at the frontier of decentralised networks, and we believe the timing, as autonomous agent activity and compute begins to scale onchain in earnest, could not be better.
With RedStone, the fast-growing oracle provider we supported through both seed and follow-on funding, we are exploring opportunities for KR1 to take an active role in the network as a RedStone operator. The pace and quality of RedStone's recent integration wins speaks for itself: primary data feed infrastructure for Canton Network, an institutional RWA blockchain backed by Goldman Sachs and Citadel Securities hosting over $6 trillion in tokenised assets; core oracle provider for Tempo, the payments blockchain co-developed by Stripe and Paradigm which also houses their Agentic AI Machine Payment Protocol; and the purpose-built HyperStone oracle stack powering over $1.5 billion in trading volume across Hyperliquid's permissionless perpetuals markets. Spanning institutional RWA, global payments and high-performance derivatives, Redstone is the common thread across three of the most significant oracle integrations in the space. With the additional launch of CLARA, its agent-to-agent communication and marketplace layer, Redstone is positioning itself as foundational plumbing for the new onchain economy in its entirety, and our relationship and potential operator role places us well to benefit from that trajectory.
We are also evaluating opportunities in the data availability space, including operations with Celestia and other protocols we hold, where we see a meaningful opportunity to operate as active infrastructure participants rather than passive holders.
After navigating a challenging 2025 we believe the 2026 macroeconomic environment is becoming meaningfully more constructive. Liquidity will return, and when it does, it will flow toward quality. We are entering what may prove to be one of the most consequential years in the history of digital assets, with the convergence of agentic AI, decentralised compute, real world asset tokenisation and institutional adoption creating conditions that favour precisely the kind of patient, infrastructure-oriented approach KR1 has taken. The networks, validators and decentralised AI and agentic compute layers being built today will form the backbone of a new financial and computational internet, and KR1 is now positioning itself as an active participant in that buildout.
We would like to thank our shareholders for their continued support and patience, and we look forward to demonstrating, through our actions and results, why KR1 is the most credible, institutional-grade digital asset vehicle on the London markets on its path to build out the premium blue chip digital asset company on the LSE, the next chapter for KR1 is just getting started.
George McDonaugh & Keld van Schreven
Managing Directors & Co-Founders
Statement of Comprehensive Income
|
|
2025 £ |
2024 £ |
|
Continuing operations |
|
|
|
Income |
|
|
|
Income from digital assets |
4,872,546 |
13,028,305 |
|
Interest received |
- |
3,382 |
|
|
|
|
|
Direct costs |
(305,127) |
(621,429) |
|
Gross profit |
4,567,419 |
12,410,258 |
|
|
|
|
|
Administrative expenses |
(5,599,139) |
(5,284,676) |
|
(Loss) on disposal of intangible assets held at fair value |
(8,479,992) |
(1,024,359) |
|
(Loss) on disposal of intangible assets held at cost |
(325,709) |
- |
|
Gain on disposal of financial assets |
171,904 |
- |
|
Movement in fair value of intangible assets at fair value through profit and loss |
(22,610,544) |
- |
|
Movement in fair value of financial assets at fair value through profit and loss |
(4,076,470) |
1,739,030 |
|
Movement in fair value of intangible assets held under the cost model |
374,310 |
10,847 |
|
Share option surrender |
149,852 |
- |
|
|
|
|
|
Operating (loss)/profit |
(35,828,369) |
7,851,100 |
|
|
|
|
|
Taxation on loss |
- |
- |
|
|
|
|
|
(Loss)/profit after taxation |
(35,828,369) |
7,851,100 |
|
|
|
|
|
Other comprehensive income: |
|
|
|
|
|
|
|
Movement in fair value of intangible assets |
(53,822,045) |
(63,104,474) |
|
|
|
|
|
Total other comprehensive income for the year |
(53,822,045) |
(63,104,474) |
|
|
|
|
|
Total comprehensive income attributable to the equity holders of the Company |
(89,650,414) |
(55,253,374) |
|
|
|
|
|
Earnings per share attributable to the equity owners of the company (pence): |
|
|
|
Basic earnings per share |
(20.23) |
4.43 |
|
Diluted earnings per share |
(20.23) |
4.43 |
The Company has elected as an accounting policy to present one single statement, statement of profit or loss and other comprehensive income, rather than to present two separate statements, a statement of profit or loss and a statement of comprehensive income
Statement of Financial Position
|
|
2025 £ |
2024 £ |
|
Assets |
|
|
|
Non-current assets |
|
|
|
Intangible assets |
272,889 |
- |
|
Intangible assets receivable |
2,384,806 |
3,375,391 |
|
Total non-current assets |
2,657,695 |
3,375,391 |
|
|
|
|
|
Current assets |
|
|
|
Intangible assets |
37,513,886 |
121,414,750 |
|
Intangible assets receivable |
2,382,209 |
1,869,927 |
|
Financial assets at fair value through profit and loss |
6,155,680 |
12,337,947 |
|
Cash and cash equivalents |
1,306,081 |
1,176,291 |
|
Trade and other receivables |
201,626 |
215,657 |
|
Total current assets |
47,559,482 |
137,014,572 |
|
|
|
|
|
Total assets |
50,217,177 |
140,389,963 |
|
|
|
|
|
Equity and liabilities |
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
614,000 |
987,622 |
|
Total current liabilities |
614,000 |
987,622 |
|
|
|
|
|
Net assets |
49,603,177 |
139,402,341 |
|
|
|
|
|
Equity |
|
|
|
Share capital |
338,107 |
337,005 |
|
Share premium |
36,602,619 |
36,602,619 |
|
Capital redemption reserve |
471,751 |
471,751 |
|
Revaluation reserve |
- |
53,822,045 |
|
Option reserve |
- |
149,852 |
|
Treasury shares |
(298,044) |
(298,044) |
|
Retained reserves |
12,488,744 |
48,317,113 |
|
Total equity |
49,603,177 |
139,402,341 |
|
|
|
|
|
Total equity and liabilities |
50,217,177 |
140,389,963 |
Statement of Changes in Equity
|
|
Share capital
£ |
Treasury shares
£ |
Capital redemption reserve £ |
Share
£ |
Revaluation reserve
£ |
Option
£ |
Retained reserves
£ |
Total
£ |
|
Balance at 1 January 2025 |
337,005 |
(298,044) |
471,751 |
36,602,619 |
53,822,045 |
149,852 |
48,317,113 |
139,402,341 |
|
(Loss) for the financial year |
- |
- |
- |
- |
- |
- |
(35,828,369) |
(35,828,369) |
|
Total other comprehensive income for the year |
- |
- |
- |
- |
(53,822,045) |
- |
- |
(53,822,045) |
|
|
|
|
|
|
|
|
|
|
|
Total comprehensive income for the year |
- |
- |
- |
- |
(53,822,045) |
- |
(35,828,369) |
(89,650,414) |
|
|
|
|
|
|
|
|
|
|
|
Issue of ordinary shares at par |
1,102 |
- |
- |
- |
- |
- |
- |
1,102 |
|
Surrender of share options |
- |
- |
- |
- |
- |
(149,852) |
- |
(149,852) |
|
|
|
|
|
|
|
|
|
|
|
Transactions with owners, recorded directly in equity |
1,102 |
- |
|
|
- |
(149,852) |
- |
(148,750) |
|
|
|
|
|
|
|
|
|
|
|
Balance at 31 December 2025 |
338,107 |
(298,044) |
471,751 |
36,602,619 |
- |
- |
12,488,744 |
49,603,177 |
Statement of Cash Flows
|
|
2025 £ |
2024 £ |
|
Assets |
|
|
|
Non-current assets |
|
|
|
Intangible assets |
272,889 |
- |
|
Intangible assets receivable |
2,384,806 |
3,375,391 |
|
Total non-current assets |
2,657,695 |
3,375,391 |
|
|
|
|
|
Current assets |
|
|
|
Intangible assets |
37,513,886 |
121,414,750 |
|
Intangible assets receivable |
2,382,209 |
1,869,927 |
|
Financial assets at fair value through profit and loss |
6,155,680 |
12,337,947 |
|
Cash and cash equivalents |
1,306,081 |
1,176,291 |
|
Trade and other receivables |
201,626 |
215,657 |
|
Total current assets |
47,559,482 |
137,014,572 |
|
|
|
|
|
Total assets |
50,217,177 |
140,389,963 |
|
|
|
|
|
Equity and liabilities |
|
|
|
Current liabilities |
|
|
|
Trade and other payables |
614,000 |
987,622 |
|
Total current liabilities |
614,000 |
987,622 |
|
|
|
|
|
Net assets |
49,603,177 |
139,402,341 |
|
|
|
|
|
Equity |
|
|
|
Share capital |
338,107 |
337,005 |
|
Share premium |
36,602,619 |
36,602,619 |
|
Capital redemption reserve |
471,751 |
471,751 |
|
Revaluation reserve |
- |
53,822,045 |
|
Option reserve |
- |
149,852 |
|
Treasury shares |
(298,044) |
(298,044) |
|
Retained reserves |
12,488,744 |
48,317,113 |
|
Total equity |
49,603,177 |
139,402,341 |
|
|
|
|
|
Total equity and liabilities |
50,217,177 |
140,389,963 |
Relevant Notes to the Financial Statements
Basis of preparation
The financial statements have been prepared in accordance with UK-adopted International Accounting Standards.
The financial statements are presented in Pounds Sterling ("GBP"). The Company's functional currency is also GBP and has been assessed by the Directors based on consideration of the currency and economic factors that mainly influence the Company's digital assets, investments, operating costs, financing and related transactions. Changes to these factors may have an impact on the judgement applied in the determination of the Company's functional currency.
Assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Foreign exchange differences arising on translation are recognised in profit or loss.
The preparation of financial statements in conformity with UK-adopted International Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.
Going concern
The preparation of financial statements requires an assessment on the validity of the going concern assumption.
The Board has evaluated the Company's financial forecasts and projections, comprehensively assessing principal risks alongside broader macroeconomic and geopolitical factors. Following this rigorous review, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the three-year period of assessment.
In making this assessment, the Directors have exercised significant judgement in assuming that the digital asset markets and the associated blockchain infrastructure on which the Company's staking activities depend will continue to operate and develop in a manner broadly consistent with current conditions over the three year period. In making this viability statement the Directors have also considered market downturn in the fair value of digital asset holdings of 10% and 50% per annum and a reduction in income from digital assets of 10% and 50% per annum, with 50% being a worst case scenario. Consequently, the Board considers it entirely appropriate to continue adopting the going concern basis of accounting in the preparation of the Financial Statements.
Significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below.
Measurement convention
The financial statements have been prepared under the historical cost convention except for the following items:
listed financial assets which are carried at fair value; and
intangible assets traded in an active market which are carried at fair value.
A number of assets and liabilities included in the Company's financial statements require measurement at, and/or disclosure of, fair value.
The fair value measurement of the Company's financial and non-financial assets and liabilities utilises market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorised into different levels based on how observable the inputs used in the valuation technique utilised are (the 'fair value hierarchy'):
Level 1: Quoted prices in active markets for identical items (unadjusted)
Level 2: Observable direct or indirect inputs other than Level 1 inputs
Level 3: Unobservable inputs (i.e. not derived from market data).
The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect on the fair value measurement of the item. Transfers of items between levels are recognised in the period they occur.
Income
Income from digital assets represents amounts received from staking activities, distributions, governance rewards and during the comparative year income from parachains.
Other Income represents amounts received from the disposal of intangible assets, the disposal of financial assets and during the comparative year bank interest was also received.
Gains and losses arising from changes in the fair value of the financial assets at fair value through profit or loss and from changes in fair value of intangible assets are presented in the statement of comprehensive income within movement in fair value of financial assets at fair value through profit or loss and movement in fair value of intangible assets respectively in the period in which they arise.
Income from the disposal of digital assets is recognised on the date of the sale and income from staking, parachains, distributions and bonus tokens are recognised on an accruals basis as earned.
Intangible assets
Digital assets
The Company holds digital assets which do not qualify for recognition as cash and cash equivalents or financial assets. The Company does not meet the definition of a broker-trader under IAS 2 "Inventories" as the assets are not principally acquired for the purpose of selling in the near future and brokerage in nature. The assets are held with a view to participate in proof-of-stake networks and with a view to medium to long term capital growth.
Considering this, the digital assets have been classified as Intangible Assets in accordance with IAS 38 and the revaluation model has been applied as there is an active market for the digital assets. The assets are identifiable; separable and future economic benefits are expected. Intangible assets held are measured initially at cost and are subsequently carried at a revalued amount based on fair value.
All assets in this class are accounted for using the same model unless there is no active market for those assets. A class of intangible assets is a grouping of assets of a similar nature and use in an entity's operations. The items within a class of intangible assets are revalued simultaneously as is required, and to avoid selective revaluation of assets and the reporting of amounts in the Financial Statements representing a mixture of costs and values as at different dates.
Revaluation increases in the carrying amount are recognised in other comprehensive income and accumulated in the revaluation surplus within equity. Revaluation decreases which offset previous increases are charged in other comprehensive income and debited to the revaluation surplus directly in equity. All other decreases are charged to the income statement.
The digital assets have indefinite useful lives and are reviewed at each reporting period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset.
Early-stage investments for future tokens
Projects and entities looking to launch a decentralised blockchain network or product (including proof-of-stake networks) may make use of agreements such as a 'Simple Agreement for Future Tokens' ("SAFT") or a 'Simple Agreement for Future Equity ("SAFE") in combination with a Token Warrant (warrant to purchase digital assets).
Whereby an investment takes the form of a SAFE and Token Warrant the equity element (SAFE) is classified as a financial asset in accordance with Note 6 whereas the Token Warrant, to be exercised at a negligible value, is the element classified as an early-stage investment for future tokens. Once the digital assets are "issued" the corresponding SAFE is evaluated for full impairment if no further economic benefits are expected.
The early-stage investments for future tokens in the Company consist of SAFTs and Token Warrants, whereby the investor provides upfront funding to a project in exchange for an entitlement to receive a variable number of digital assets or tokens in the future upon a successful launch of the respective project. Details in agreements can vary, impacting the determination of the accounting treatment including (but not limited to) the characteristics and features that the digital asset or tokens will have, and the rights to which the future holders will be entitled through such agreements for future tokens. These investments are accounted for at cost less impairment.
Considering this it has been determined that the investments do not meet the definition of a financial asset as they do not give the holder the right to cash or another financial asset. The investments do meet the definition of an identifiable non-monetary asset without physical substance and hence an intangible asset under IAS 38. The investments are assets that are controlled by the Company as a result of past events and from which future economic benefits are expected.
Unlike the digital assets held, there is no active market for these agreements and hence these are held under the cost model and subsequent to initial recognition will be held at cost less impairment. No amortisation will be charged to the assets as the investment is entered into with the outcome expected that digital assets will be provided at the end of the agreement following a projects' launch.
Financial instruments
Financial assets
Financial assets are recognised in the Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument. The Company initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument.
The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.
The classification of financial assets at initial recognition that are debt instruments depends on the financial asset's contractual cash flow characteristics and the Company's business model for managing them. The Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.
Financial assets and liabilities are offset, and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
The Company has the following non-derivative financial assets: financial assets at fair value through profit or loss and loans and receivables.
Financial assets at fair value through profit or loss
A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated at fair value through profit or loss if the Company manages such investments and makes purchase and sale decisions based on their market value. Upon initial recognition attributable transaction costs are recognised in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss.
Receivables
Receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition receivables are measured at amortised cost using the effective interest method, less any impairment losses. Receivables comprise trade and other receivables.
Digital assets and which are legally owned by the Company originating from early-stage investments for future tokens may be distributed to Company owned accounts or blockchain wallets under the Company's control by the investee team over time in accordance with the terms of contractual agreements between the Company and the investees. The Company recognises these owned but yet-to-be-received digital assets as Intangible assets receivable.
Cash and cash equivalents
Cash and cash equivalents includes cash at bank and cash held on trading platforms and comprises cash balances and call deposits with original maturities of three months or less.
Equity instruments
The Company subsequently measures all equity investments at fair value. Where the Company's management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.
Financial liabilities
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company's financial liabilities include trade and other payables.
Trade and other payables
After initial recognition, trade and other payables are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit or loss and other comprehensive income when the liabilities are derecognised, as well as through the EIR amortisation process.
A financial liability is derecognised when the associated obligation is discharged or cancelled or expires.
Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense. Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the reporting date. Deferred tax balances are not discounted. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Treasury shares
The costs of repurchasing ordinary shares including transaction costs are recognised in the Statement of Changes in Equity and accounted for on a trade date basis. The Company must not exercise any right in respect of the treasury shares (e.g. attending or voting at meetings) and no dividend or distribution can be paid to them (including any distribution of assets to members on a liquidation) and therefore treasury shares are excluded from NAV and EPS calculations.
Capital redemption reserve
The capital redemption reserve is created further to the redemption of Class C and Class D shares below par. The difference between nominal value and the redemption amount is recognised within equity as a capital redemption reserve which is a distributable reserve.
Segmental information
The Board has determined that the Company is operating in a single operating segment being that of decentralised technologies and digital assets. In the financial year 97.00% (2024: 99.04%) of the assets of the Company consist of digital assets and holdings in the decentralised technologies industry.
Further, throughout the financial year 2025, 100% (2024: 99.79%) of the Company's income is from digital assets and of that 99.12% (2024: 98.28%) was generated from the Company's staking activities on a range of decentralised networks.
Due to the nature of decentralised networks and digital assets, it is not possible to provide a geographical split of the Company's income stream and its assets as digital assets are traded worldwide and are not specific to a geographical area.
Earnings per share
The basic earnings per share is calculated by dividing the profit after tax of the Company for the year attributable to equity shareholders by the weighted average number of shares in issue.
The diluted earnings per share is calculated by dividing the profit after tax of the Company or the year attributable to equity shareholders by the weighted average number of shares in issue plus the number potential ordinary shares (share options as further described in Note 16).
Profit after tax of the Company for the year: loss £35,828,369 (2024: £7,851,100)
Weighted average number of Ordinary 0.19p Shares in issue: 177,103,452 (2024: 177,145,867).
Options exercisable at the year-end: nil (2024: 223,150)
Basic earnings per share: loss 20.23p (2024: 4.43p).
Diluted earnings per share: loss 20.23p (2024: 4.43p)
Intangible assets
Digital assets
The intangible assets consist of digital assets and early-stage investments for future tokens. As detailed in the accounting policies the digital assets are intangible assets held under the revaluation model and early-stage investments for future tokens are also held as intangible assets at cost less impairment and amortisation.
|
|
2025 £ |
2024 £ |
|
Digital assets |
41,884,528 |
124,822,006 |
|
Early-stage investments for future tokens |
669,262 |
1,838,062 |
|
Balance at 31 December |
42,553,790 |
126,660,068 |
Digital assets that are legally owned by the Company from early-stage investments for future tokens may be distributed to Company owned accounts or blockchain wallets under the Company's control by the investee team over time in accordance with the terms of contractual agreements between the Company and the investees. The Company recognises these owned but yet-to-be-received digital assets as Intangible assets receivable.
Whilst, under such circumstances the Company generally forfeits its ability to sell or otherwise transfer its locked digital assets, no other entity obtains the right to direct their use and the Company is still the primary entity holding the risks and rewards of ownership. Locked digital assets may be unlocked as a full tranche or may be subject to unlock and vesting schedules.
The Company does not derecognise time locked or vesting digital assets which are classified and measured in the same manner as non-locked digital assets.
The Company classifies digital assets which are due for release no later than one year after the year end as intangible assets held as current assets. Digital assets, which are due for release more than one year after the year end are classified as intangible assets held as non-current assets.
Digital assets receivable from third parties subject to unlock and vesting schedules, or as distributions and rewards are classified as intangible assets receivable.
|
Intangible assets held at fair value |
2025 £ |
2024 £ |
|
Intangible assets held as current assets |
37,513,886 |
121,414,750 |
|
Intangible assets held as non-current assets |
272,889 |
- |
|
Intangible assets receivable held as current assets |
2,382,209 |
1,869,927 |
|
Intangible assets receivable held as non-current assets |
2,384,806 |
3,375,391 |
|
Balance at 31 December |
42,553,790 |
126,660,068 |
The following tables present the Company's digital assets subject to time lock at 31 December 2025.
|
Asset |
Lock type |
Number of tokens |
Fair value |
Release date* |
|
AI3 |
Time locked |
2,500,000 |
48,400 |
04/09/2029 |
|
ALTHEA |
Time locked |
250,444 |
13,700 |
** |
|
AVAIL |
Time locked |
12,500,000 |
59,975 |
14/01/2027 |
|
BOB |
Time locked |
50,900,000 |
407,455 |
29/04/2027 |
|
CLEAR |
Time locked |
996,807 |
2,566 |
06/06/2026 |
|
MODE |
Time locked |
125,000,000 |
54,475 |
07/04/2027 |
|
RED |
Time locked |
25,454,545 |
4,024,364 |
06/09/2027 |
|
TANSSI |
Time locked |
16,939,394 |
156,080 |
09/07/2027 |
|
XAN |
Time locked |
25,000,000 |
307,000 |
29/01/2028 |
|
|
Total |
|
5,074,015 |
|
*Vesting schedules generally comprise of monthly linear unlocks beginning one year after the Token Generation Event. The release date of time locked digital assets stated being the last tranche and marking the end date of the unlock schedules.
** ALTHEA release date subject to Governance vote
At the year end the Company held digital assets as detailed below:
|
2025 Assets |
Number of |
Cost £ |
Fair Value £ |
|
Lido Staked ETH (stETH) |
5,119 |
7,371,480 |
11,289,391 |
|
Polkadot (DOT) |
5,398,208 |
21,087,316 |
7,182,277 |
|
Nexus Mutual (NXM) |
110,698 |
217,363 |
5,832,682 |
|
Lido (LDO) |
11,749,998 |
89,300 |
5,034,874 |
|
Redstone (RED) |
25,454,545 |
296,660 |
4,024,364 |
|
Cosmos (ATOM) |
2,103,439 |
9,460,892 |
3,013,991 |
|
Celestia (TIA) |
7,007,187 |
7,246,375 |
2,372,388 |
|
Hydration (formerly Hydra DX) (HDX) |
144,138,446 |
888,572 |
434,577 |
|
Build on Bitcoin (BOB) |
50,900,000 |
71,318 |
407,455 |
|
Anoma (XAN) |
25,000,000 |
804,537 |
307,000 |
|
Moonbeam (GLMR) |
17,354,130 |
5,541,345 |
296,889 |
|
Astar (ASTR) |
39,993,433 |
3,746,208 |
284,367 |
|
Kusama (KSM) |
46,036 |
1,720,830 |
233,342 |
|
Tanssi (TANSSI) |
20,000,000 |
298,240 |
184,280 |
|
Automata Network (ATA) |
13,348,983 |
253,720 |
167,263 |
|
USDC (USDC) |
186,886 |
142,517 |
138,923 |
|
Other minor holdings |
|
5,423,976 |
680,465 |
|
Balance at 31 December 2025 |
|
64,660,649 |
41,884,528 |
Revaluation increases in the carrying amount are recognised in other comprehensive income and accumulated in the revaluation surplus within equity. Revaluation decreases which offset previous increases are charged in other comprehensive income and debited to the revaluation surplus directly in equity. All other decreases are charged to the income statement.
Sensitivity analysis for digital assets
If the average fair values of the digital assets at fair value had increased/decreased by 10% during 2025 with all other variables held constant, the Company's profit for the year would have moved by +/- £4,188,483 (2024: +/- £12,482,201).
Early-stage investments for future tokens
Early-stage investments for future tokens are recognised initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument.
Accumulated amortisation, impairment and revaluation
|
|
2025 £ |
2024 £ |
|
Balance at 1 January |
1,838,062 |
1,512,596 |
|
Acquisition of intangible assets |
297,846 |
1,095,259 |
|
Disposals of intangible assets |
(365,090) |
- |
|
Reclassification (Intangible assets at fair value) |
(1,475,866) |
(780,640) |
|
Change in fair value of intangible assets |
374,310 |
10,847 |
|
Balance at 31 December |
669,262 |
1,838,062 |
Due to the nature of the intangible assets an infinite useful economic life has been used for the asset. Once the early-stage investments generate tokens (i.e. the Company received the digital assets) the assets are held at revaluation. Subsequent to the issue of digital assets, the investments are held until such a time that the Company disposes of them in the market.
Upon a successful token launch (i.e. the Company received the digital assets), early-stage investments for future tokens are reclassified as digital assets.
Post Balance Sheet Events
On 9 February 2026 the Company announced the introduction of its Financial Infrastructure Strategy in order to evolve and complement existing operations and income streams. As part of this Bitcoin ("BTC") and further Ethereum ("ETH") have been added to the Company assets. Bitcoin and Ethereum will both be utilised by the Company within DeFi alongside a risk mitigation strategy through Nexus Mutual smart contract cover. This enables a low-risk approach whilst providing the opportunity to generate higher yields relative to market alternatives.
Further on 18 February 2026 the Company announced an addition to its Financial Infrastructure Strategy through the Nexus Mutual ("NXM") protocol. The Company has committed an initial allocation of its existing NXM holdings to underwrite discretionary cover across Ethereum's decentralised finance ecosystem ("DeFi") via Nexus Mutual staking pools.
On 16 April 2026 the Company announced an update on the holding in Bitway. Following the launch of the BTW token on 3 March, KR1 plc holds a total of 100,000,000 BTW, acquired through the Company's US$300,000 investment in Bitway's (formerly Side Protocol) pre-seed funding round as announced on 26 July 2023. Based on the BTW market price as at 15 April 2026, the Company's holding is valued at approximately US$1.7 million. The Company's BTW tokens are subject to an initial lock-up of 12 months from token launch and thereafter a linear unlock over a further 24 months.
The Notes to the Financial Statements contained in the Company's Annual Report form part of the Financial Statements.
The Company's Annual Report and Financial Statements were approved by the Board of Directors on 27 April 2026 and were signed on its behalf by George McDonaugh (Managing Director & Co-Founder) and Keld van Schreven (Managing Director & Co-Founder).
The financial information set out in this announcement does not constitute statutory accounts. The financial information has been extracted from the Company's Annual Report and Financial Statements for the year ended 31 December 2025.
The Annual Report and Financial Statements of the Company will be available on the Company's website: https://www.KR1.io/investors/documents
Contact
For further information, please contact:
KR1 plc (LSE: KR1)
George McDonaugh, Keld van Schreven
Phone: +44 (0)1624 630 630
Email: investors@KR1.io
Singer Capital Markets (Corporate Broker and Financial Adviser)
Investment Banking: Alex Bond, James Fischer
Equity Sales: William Gumpel
Phone: +44 (0)20 7496 3000
Email: enquiries@singercm.com
SEC Newgate (PR, Media and Financial Communications Adviser)
Ian Silvera, Bob Huxford, Dafydd Rees
Phone: +44 (0)20 3757 6882
Email: KR1@secnewgate.co.uk
AlbR Capital (Financial Adviser)
David Coffman
Phone: +44 (0)20 7469 0930
Email: info@albrcapital.com
About KR1 plc
KR1 plc (LSE: KR1) is a digital asset technology company publicly listed on the London Stock Exchange, focused on the infrastructure layer of decentralised networks. By securing Ethereum and other leading proof-of-stake networks, the Company steadily compounds its asset base alongside strategic investments - turning active network participation into long-term value for shareholders.
Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as defined in the European Union (Withdrawal) Act 2018).
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 2 hours ago Luceco
- 2 hours ago Helios Towers
- 3 hours ago Wise Class A
- 3 hours ago EDX Medical Group Plc
- 3 hours ago Naked Wines