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(KR1 ) said it has generated a further 77,542.92 DOT all of which have been sold at an average price of US$23.83 per DOT token, realising US$1,847,518 for the Company.
Prior to this, the digital asset investment firm realised 141,564.69 DOT in December since August 2020, sold at an average price of US$5.63 per DOT token, realising US$796,942
The Company outlined to investors that its strategy is to ‘time the realisation of its accruing staking yields to benefit from prevailing market conditions.’ KR1’s total current holding of Polkadot tokens remains at 3,498,842.45 DOT after the realisation of all staking yields.
To date, this strategy has led to a more favourable average realised price of US$23.83 per DOT for this particular Polkadot staking revenue update, compared to an average price of $20.27 per DOT that would have been achieved if KR1 had sold its proceeds on a daily basis.
“With the impressive appreciation of Polkadot’s market price over the last quarter, our strategy of timing the market “if the asset price is under pressure” was not entirely applicable, considering we were looking at US$5.35 per DOT at the beginning of this staking period only three months ago,” said George McDonaugh, MD and Co-Founder of KR1.
He added, “That said, with the change in market conditions, we are adjusting our strategy accordingly. We are very encouraged by Polkadot’s momentum and are looking forward to the upcoming months of staking operations.”
In December, the group told investors that momentum in the Polkadot ecosystem had 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.
However, KR1 said accrued revenue from its Polkadot staking activities had been impacted recently due to a migration process of its Polkadot staking operations over the last quarter. This involved multiple ‘unbonding’ procedures, during which no staking revenue accrued for twenty-eight days. Importantly, KR1 said the process is now finalised and it is able to resume the staking of a large majority of its DOT position to continue generating revenues.
Shares in KR1 have seen an over eight-fold increase since the start of 2021 as institutional and non-institutional investors realise the utility and opportunity for blockchain technologies in general and cryptocurrencies in particular. KR1, whose focus lies in DeFi, Polkadot, Cosmos ecosystems, believes it is now strongly positioned for the digital asset markets entering a new bull market cycle.
Reasons to Follow KR1
KR1 is Europe’s leading digital asset investment firm supporting early stage blockchain and DeFi projects. It is a first investor in many key blockchain and DeFi projects that will power the decentralised platforms and protocols that form the emerging Web3 infrastructure.
Generating Material Revenue
KR1 unveiled in August 2020 that it had started generating material revenue from staking activities on the Polkadot network, its largest investment and portfolio holding to date.
The company has been staking activities on Polkadot to generate revenue on an ongoing basis following its migration to a ‘Proof-of-Stake’ blockchain network back in June 2020.
To date, KR1 holds a total of Polkadot 3,558,490.89 DOT tokens, post-re-denomination. This differs from its original DOT allocation as a result of the bonus pool of unlisted digital tokens allocated pursuant to KR1’s 2017 bonus scheme, which included Polkadot as an asset.
George McDonaugh, Managing Director and KR1’s Co-founder, described the launch of Polkadot as “a momentous event” in the group’s history and one that shareholders have been waiting for since KR1 backed the project in an early funding round in 2017.
Commenting on the group’s largest investment activities, McDonaugh told investors: “We are pleased to have locked in some profit at good prices and we’re delighted that Polkadot is further expanding the Company’s staking activities as a yield-bearing asset.”
Positive Outlook for Blockchain and KR1
McDonaugh said KR1 is seeing huge interest flowing into numerous new projects building on Polkadot, many of which it has already supported, or currently in active discussions.
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