Kr1 (LSE:KR1) — Investor Presentation

0:00 Good morning, and welcome to the KR1 PLC investor presentation. Throughout this recorded meeting, investors will be in listen only mode. Questions can be submitted anytime and just done through the Q and A tab situated on the right hand corner of screen. Company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd like to hand you over to the team at KR1 PLC. Good morning.

0:27 Good morning. Thanks for having us. I'm George, managing director and cofounder of KR1. It's great to be here, and I'm looking forward to walking you through the next chapter of the company. Most of you will have read the announcement earlier in the week about our new financial infrastructure strategy, which complements our already existing strategy and operations. And today, we're going to be explaining to you what we're doing, why we're doing it, and some of the how we're doing it. This is not a financial update, simply an investor update on the new strategy and our operations. We will likely be doing another presentation around the time of our, you know, f full year '25 results.

1:15 Just quickly a disclaimer. This presentation is for information and discussion purposes only and should not be considered an offer or solicitation to buy or sell KR1 shares. So KR1 sits firmly between traditional finance, public markets and the new emerging digital asset space. We started KR1 in 2016 as a digital asset specialist and have had a successful decade with over 100 plus early stage investments. And we've grown from 2,860,000 of funds raised to over 50,000,000 in net assets, as shown in our latest December NAV update.

1:58 We've been in Ethereum since day one, focused on key innovation in the space and have been staking assets for over six years since 2019. KR1 secondures, invests in and generates income from these foundational networks, particularly Ethereum and its wider ecosystem, which together comprise over 55% of our holdings. Since 2016, KR1 has been the only London listed company offering a diversified approach across digital assets and infrastructure via income from staking and venture exposure. KR1 provides access to this infrastructure layer, the protocols that will power the tokenization and the migration of assets on chain.

2:45 As we're now listed on the London stock market, this marks a new chapter. And given how far the market has matured, we believe the next golden age of crypto is in infrastructure growth, and we want to scale, expand, and diversify with it. So our mission is clear, to build the leading public market vehicle for exposure to blockchain infrastructure. This isn't about token speculation. This is about systems that are reshaping how assets across all asset classes are issued, owned, and traded on chain. A little bit about myself. I started down the Bitcoin rabbit hole, in 2011. I remember, when Litecoin was invented, and I and I thought to myself, oh, dear, this is this is competition for Bitcoin.

3:36 But fast forward a few years, and and that had completely flipped to $1.80, and I and I realized that there was a huge amount that could be done with digital scarcity. And as Ethereum formed, I became very much involved in the London Ethereum community. And KR1 was sort of born to explore that that emergent ecosystem, whilst at the same time giving people access to that new economy via a pub publicly listed share, and it's it's been an incredible journey thus far. I'll hand you over to Kel to to discuss the rest of the team. Thanks, George. I'm Kel, managing director, cofounder of KR1. And if you haven't met me before, I was early in the Internet and started and saw one of the first web development companies to live in a in 2000 in those in that in those heydays back back then. And then started a couple of the companies since then. One of them is a mobile payment service for SMEs, which is still running today.

4:40 And I discovered Bitcoin early around 2012, 2013, and Ethereum pre ICO. And then around that time, I met George, and then we decided to start KR1. Our third member of the of the management team is Janos. He was also early in the Ethereum scene and is economics an graduate. And I think the important takeaway from this slide for everyone to to to acknowledge is that, you know, we we're fully aligned as a management team. We own about 25% of the company.

5:15 We earn those through performance bonuses in twenty twenty twenty one when the share price is around £1.20. So there's no one really more motivated than us to get the the share price north of of well well north of that. And yeah. So that that's a a really big takeaway from this slide. The rest of our the company, we've got Reese Davis who's a chairman who's very experienced twenty five years in the public markets. And we've got Peter Holesgrove. He's also just joined. He's very crypto native. He's been crypto since for ten years and a very safe pair of hands on our IR and communications. So So as as a sort of outlook, our outcomes are directly tied to the long term to long term shareholder value.

6:03 So quick quick financial snapshot. So as at the end of December, our NAV sat at £50,200,000 or 28.25 p per share. And throughout 2025, we generated over £4,900,000 in income from our technology infrastructure operations, which is essentially all from our staking activities. Please keep in mind that these are unaudited figures based on our financial update announcements throughout the year, and may differ from our eventual audited results, which you can expect to be published by the end of April. And, also, just to reiterate, we don't have any borrowings as a company and, have a strong balance sheet. So onto our onto our business model. So for the for the for the past seven years, we've been an active operator in proof of stake networks, ensuring the integrity and security of these networks.

6:58 So a good example is Ethereum. So the first the first thing we do is we the Ethereum that we hold and we use them to stake. With staking, the Ethereum is locked up in the Ethereum staking system and used to activate a validator, which is basically a trusted network participant. The validator's job is to check and confirm transactions and help create new blocks. Think of it as keeping the shared ledger honest and up to date. For doing this work, the validator earns rewards in ESA, and these rewards come from, you know, providing network security and and reliability. But the important part is compounding. So instead of taking the rewards out, we restake the earned Ether. And over time, this means we're earning rewards on the original Ether

7:48 plus the rewards themselves. So Ether making more Ether. The result is a steady compounding growth. And as long as the Ether stays staked and the network keeps running, our strategy continues. And so this is what we're doing. This process of making an asset work for us within its technology stack is repeatable across different networks and different protocols. And we've been doing this process for over seven years, and we're going to repeat this process across new assets and protocols. We seed funded Celestia and Redstone, and we can put them to work too, gaining income from utilizing these positions in technology operations while also being exposed to capital growth of these holdings for when market sentiment returns.

8:35 Redstone provide Oracle data feeds. It's an exciting new project. Redstone data is used to power BlackRock's Biddle fund. And, of course, they recently signed a partnership with Canton, which has a huge addressable market. And this is not everything. So we can apply technology infrastructure operations across varied networks and protocols, and we will seek to identify new opportunities continuously. And now to our financial infrastructure strategy, which we put an RNS out earlier in the week. This strategy is all about going down the risk curve with our assets, hunting high yields yet with a deliberate thought through risk managed approach.

9:21 We're looking to utilize up to 20% of the company's holdings towards this financial infrastructure strategy. And as part of this, we've started buying Bitcoin, and we've added to our Ethereum position as well. We now view both of these assets as productive financial assets, and we're targeting diversified risk managed yield generation, alongside our core technology infrastructure strategy. And why Bitcoin now? Well, the DeFi landscape has matured sufficiently to allow us to manage a Bitcoin position effectively. And it won't only be Bitcoin. We will also put to work a portion of our Ethereum, and also get our next mutual position working harder for us, both in terms of generating income on our holding by putting it to work within the Nexus underwriting cover system itself.

10:13 But also, and and this is key, getting our assets covered within the DeFi ecosystem using the Nexus protocol itself. So this is a higher yield strategy. We need to beat the standard Ethereum stake in rewards, which are currently around 2.6%, as well as beat alternative market participants that are currently getting very low Bitcoin yields. We think we can outcompete these comfortably in terms of yield. And to be clear, this financial infrastructure strategy is complementing our already operating technology infrastructure strategy, and this is how we plan to allocate our holdings in terms of utilization across these strategies.

11:01 And this is how it will work. So we add our assets to a liquidity pool deep in the DeFi stack, while at the same time taking out very specific cover within Nexus Mutual that covers our position should certain events occur. This approach allows us to retain control of our assets, seek high yield, yet remain shielded to a great extent from the risks inherent in the space. And why are we doing this now? Well, DeFi has got proven product market fit. There's huge growth in in the space, and a tsunami of stablecoins is coming down the pipe. As as you know, the American administration is currently putting stablecoins at the very heart of their financial planning, which is fairly extraordinary for those who've been in the space a long time to to imagine, but but it's happening.

11:54 And as as that, you know, growth of stablecoins happens, so will will DeFi grow, and we want to position ourselves for for for when that happens. So we will seek outsized yield opportunities while we await the capital growth of our DeFi based assets. We're an established specialized digital asset operator, and we're seeking to take full advantage of our DeFi knowledge we've gained over the past decade.

12:25 Not to forget, of course, our venture arm, which is where the whole company began and and how we cut our teeth as a as a as a, you know, young technology investment startup. And so venture, you know, will continue very much to be a a major focus for us. We've done over a 100 investments to date. Some of those have gone over a thousand times our money. Since inception, we've had a very strong focus on Ethereum, but we'll always look to the ecosystem as a whole as game changing technology can come from all areas of the space as we know. We consider ourselves to be the best positioned LSE company to capture innovation in the digital assets and financial innovation that's coming down the pipe.

13:10 As a great example, we were the we were the company that seeded the entire Ethereum staking landscape with our Lido and Rocket Pool. And we will continue to pursue strategic investments across innovative decentralized networks, building diversification while also maintaining exposure to the highest quality infrastructure. This approach, positions the company to benefit from long term growth and the evolution of the digital asset space while remaining, obviously, as disciplined, adaptive and aligned where we can with durable value as it's as it's created. To achieve that, we will continue to actively manage our holdings across the technology, financial infrastructure, and venture to optimize for capital long term growth.

14:02 And and now I'll pass over to Kel to discuss our strategy. Thank you, George. Our strategy really been to create a flywheel from research to the asset allocation to capital growth and then producing income. And we've been doing this really from 2016 focused on decentralized technology. That's blockchain. That's digital assets. And And as as George mentioned, we were early in the theorem. And now we've we've seen that's the clear winner in decentralized finance, which is found product market fit. And that includes this mass explosion in stablecoins that we're seeing. But as this space evolves, so do we. You know, we're in an evolution now. And, initially, we began as an early stage VC, but we've seen a complete change in the space.

14:53 As a con as we're in a in a contracting market, consolidation to quality is also essential. But what looks really compelling to us now is the ability to extract the superior yields from high quality productive assets and make those assets work. We've been really successful with technology infrastructure at scale through our staking activities since 2019. And now with the changing market dynamics, we're bringing new financial infrastructure operations into life. This is a powerful combination of income streams, and we feel this approach is really missing from digital asset public companies right now. And lastly, long term capital appreciation remains the primary objective for k one, but we complement this with income streams from technology and financial infrastructure.

15:44 These are gonna diversify returns for us, reduce the dependence on pure price appreciation, and also introduce more consistent cash flows without compromising our core growth mandate. We're still investing, obviously, but now the goal is simple to fill the diversity gap and outperform the market using active asset allocation at scale. So how does KR1 fit in this landscape? Well, the majority of public public digital asset companies like ETNs or digital asset technology companies, which are DATs called DATs, are built for price replication. They're not really ecosystem participants, whereas we generate returns by operating within the networks themselves.

16:29 So this is the important takeaway I'd like you to take from the slide. The primary strategies we run special we're a specialist digital asset technology business. We run nodes. We stake. We invest early. We build positions actually inside the network architecture itself. And traditional vehicles simply mirror a token, and treasury style firms stack Bitcoin or and then just wait. We generate exposure from actually from within the system, and that's a different return engine. As far as diversification goes, there there are different models. They're not just different they're not just different tokens. So it's not just five tokens. It's five economic models, and we span layer ones, decentralized applications, staking, DeFi, and infrastructure.

17:16 Whereas most ETNs and DATs are single asset, single narrative, and single risk. And if that asset stalls, they stall. So we don't depend on one storyline to

17:26 survive the cycle. On income generation, for passive funds, income is limited or actually absent. For treasury models, yield often conflicts with preservation, but for us, yield is actually the core. Staking rewards, network participation, and protocol economics are actually key to KR1, and we monetize participation. And in sideways markets, that really matters. And in volatile markets, it compounds. This is the paid work inside the system that we do. It's it's a little note on the yield on these treasury models. Some DATs issue new shares to buy more Bitcoin. Yes. Bitcoin on the balance sheet rises, But if the amount of shares rises too, if issued above now, the Bitcoin price per share improves.

18:12 That's capital structure, not really yield. So Bitcoin isn't actually generating income in this case. It's just new capital buying more Bitcoin, which is useful in that vehicle, but it's not actual income. So I just wanted to clarify that. Some strategies amplify returns with balance sheet leverage. That works until it doesn't, But we don't rely on borrowed capital to manufacture upside. Returns come from positioning and not financial engineering, and that for us, that's just real resilience with our model. We've got a track record, and we we've we've been doing this for ten years. We're research driven and really experienced in the space. ETNs and DATs are much more static, less experienced that we've seen so far in the team structures and are very passive.

19:01 And on the return drivers, we're the only listed digital asset company combining high conviction, active allocation, and con continuous portfolio management across core emerging protocols. You know, we research and we've been researching for ten years. We're still hunting for the new Ethereums. We're not just sitting passively on legacy holdings. And our return stack is the asset appreciation, income yield from the networks in the technology infrastructure and financial infrastructure operations, and actually active allocation. So this is structural growth participation where prices for us, price is one driver. It's not all the the only driver. We don't require single line bull market to perform ETNs and DATs too. And as such, we're positioning KR1 for much for more than one environment.

19:53 So what's next for KR1? We're gonna utilize up to 20% of the companies holding in financial infrastructure as we announced earlier this week, and as to how George explained, this will help reduce reliance on technology infrastructure income and staking and pure price appreciation and provide additional cash flows. In technology infrastructure, we're launching our own validates on Ethereum, which we're really excited about, and other networks to to to directly support network security. Also, our Oracle data provision operation will come online soon with Redstone, which will happen in the spring. We also seed funded, and it's it's a very exciting project and one to watch. We're also activating our previously idle Nexus Mutual Holding, as George mentioned, as part of our financial operations.

20:41 Coverage underwriting is is actually live, and we're generating income with that as we speak with additional additional assets being deployed as capacity scales. So what we're really doing is active asset allocation, and we're gonna employ more disciplined harvesting of income streams, including staking rewards and more active rebalancing of holdings to improve our risk adjusted returns. On the venture side, we've got venture and infrastructure investments we're looking at. We continue to we'll continue to invest in high quality technology and financial infrastructure across DeFi with a clear bias towards assets that can be productively utilized to generate yield.

21:24 So in summary, if we take a look at the wider digital asset landscape, you know, probably most people on this call understand the landscape we're in. They're doing their own research, and, you know, they've they've got a lot more understanding. When we we used to previously talk to audience, they didn't really understand the actual landscape. We're in this kind of macro setup. You all know that the cycle is very different from previous. But, you know, alongside this, we've got incredible things happening on the tokenized real world asset situation. If you zoom out for a second, this is not just about the next pump. It's about actual infrastructure maturing. We're seeing new record stable point growth in tokenization, which is just starting to move. BlackRock seems to be announcing stuff every week about tokenization.

22:10 And these are going into live projects, not pilot projects. They're actually be becoming operational infrastructure, treasuries, credits, and funds, setting on chain because it's obviously faster, programmable, and cheaper. And that kind of technology movement always wins.

22:26 We're seeing with Ethereum stablecoins are no longer crypto native tools that actual settlement rails, banks, funds, and corporates are using them now. And when institutions use rails, they don't switch casually, so they're in it for the long term. On the regulatory side, we've been waiting for regulatory clarity for absolutely years, and it's actually happening. And then what that means is now this this clarity is happening, large pools of capital, which we're structurally sidelined. These these reg changes actually means we're seeing a lot of a lot of actual real change in The US. We actually spent a lot of time last year lobbying, working with ministers, and and obviously working with the FCA, being the first crypto company onto the LSE apart from, Binance, which is a Bitcoin miner.

23:12 So we're actually in the room having these conversations, and this is all much more promising.

23:18 What these regulatory what these regulations are gonna do is unlock this sort of long duration capital, which is slower and larger, but much stickier money into this into our asset class. We're we're really excited about the this this new merger of crypto and AI. We saw a first wave of it. Some of our portfolio companies pivoted into it, some unsuccessfully. But this new wave, the second cohort, is pretty gonna hit the ground running. And, you know, we know that AI needs crypto. It needs the compute data markets. It needs this the verification layer, and it needs the micro payment rails. And crypto provides all of that. It we feel it's a perfect match.

24:01 And we also feel that Ethereum is well placed to capture this value too. And if anyone saw the Ethereum foundation release on their new AI agentic unit, that that they'll understand that they're fully committed to enable developers to create new AI AI systems with Ethereum. This is very exciting for the Ethereum ecosystem. And we felt this is another another reason to double down on Ethereum. So where the market's looking, you know, you've probably done all your own research on it, but by late late twenty twenty six, you'll have institutions in place, the regulatory unlock, infrastructure live, structured products active. And this will and the liquidity will expand, and this expansion will drive the repricing of valuations. More bullish towards 2027, which won't be around price, but it'd still be around this capital rotation in into infrastructure, institutional positioning, and structural this adoption will accelerate.

24:59 And this potentially will create new cycle highs driven by usage, not just sentiment, and that's a really different quality of market.

25:11 So on on the summary and outlook, we've had a successful ten years, but we've learned a lot of lessons. One of the analogies I like to use is it's like a football analogy. We we run a football team. We won division three for quite a few of those ten years, but we also learned a lot of hard lessons. Now in the Premier League, we need a new strategy. We wanna win in this league. We were looking at some of our strikers and some of our assets. And, yeah, we've we've we've basically in this evolution. So the focus now is scaling repeatable technology and financial operations alongside investing to generate returns from real network usage on the highest quality assets, not leverage or manufactured yield. So for us, it's infrastructure maturing into capital markets. And when that infrastructure matures, value will accrue to those operators.

26:03 So we're really set up for this long term exposure to this new exploding asset class. We're not chasing the cycles. We're compounding alongside innovation. We're really here to capitalize on clearing efficiencies in public markets when when it comes to accessing high quality investment opportunities and digital asset income, particularly with next generation Ethereum Bitcoin yield. We're not trying to time volatility. We're we're not positioning for the quarter. We're actually aligning with the direction of infrastructure evolution, and we're letting adoption do the heavy lifting for us. We're positioning for a structural shift that's already in play. So kind of bringing this all together, we know that KR1 is the best positioned LSE listed digital asset company with the most experienced team in digital assets in the public markets across staking, venture, and on chain infrastructure.

26:55 And we're building that this leading public market vehicle to for exposure to this this blockchain infrastructure. It's not just token speculation. It's actually the systems reshaping how these assets are across all asset classes, how they're issued, owned, and traded on chain. And it's sort of like a final sort of wanna we wanna leave you with is we our mission is to be the number one blue chip digital asset company on the LSE.

27:21 So I'd like to thank you for listening and taking your time. We're gonna move on to questions. But just to add now, if we don't answer your question in this investor meets company, the first of many, we'll also be listening to all your questions and concerns that you can't in.

27:40 Fantastic. Thank you both indeed for your presentation. As the team said, ladies and gentlemen, please do continue to submit your questions just using the Q and A tab just on the right hand corner of the screen. But just want the company to take a few moments to review those questions submitted today. I'd like to remind you, recording the presentation, along with a copy of the slides and the published Q and A, can be accessed via your investor dashboard. Okay. I'm just going to pop your camera on, if you don't mind. Let me do that. Lovely. Thank As you can see, guys, we've had a number of questions throughout today's presentation and also several presubmitted. Probably one to start with let's look at this as a bit more of a a macro question. Why should you why says, why should I invest in KR1? I'll I'll take that question. I think, you know, hopefully, throughout the presentation, you've understood some of the kind of core principles and reasons about KR1.

28:30 So I think some some of these that really are relevant to this question are we're we're very highly experienced as a team with a long successful track record over the ten years. We've navigated a lot of the of of the the dramas, dramas, sidestep those, and also, you know, invested successfully. Obviously, we've learned some lessons. But, you know, compared to anyone else on the LSE, we're, you know, streets ahead in experience. We're also realigned. You know? Hopefully, that came across. We've got a a meaningful ownership as a management team in the company, so we wanna get that share price up as much as you do. You know? You know, looking at the competitors, ETNs, and that's hopefully, you've understood that they operate in a different way. We're much more active. Active.

29:16 We generate really economic activity within these systems. We've got a different return engine. So, yeah, we've you know, we we believe we've also got, you know, a a great handle on the the type of assets within DeFi that we're gonna be exploring, and other teams just don't have that. And sort of as a as a last, you know, why invest in KR1? I think, you know, if you wanna be sort of direct, if you look at the market where it is and where we're at, there's a price entry opportunity in the market cycle. You know, if you're DCA ing, it it looks a great time. So I I hope those answer some of the some some hopes to answer that question. Yeah. Thank you very much indeed. Couple of questions here. Matthew, thank you for your question. We're on the kind of same theme.

30:03 You mentioned you started buying Bitcoin and Ethereum. Can you elaborate on this a little more, please? Sure. I'll take that one. I think the main thing here is that the time feels right to do it. We now have the infrastructure and the expertise in place to manage a Bitcoin allocation effectively, while also generating enhanced yield. So I think, know, core to this was our understanding of how we could use our Nexus Mutual position to sort of go down the risk curve with a Bitcoin holding, but but, you know and seek higher yields, but at the same time, protect ourselves to to to a degree using Nexus. And and, you know, in in in the preceding years, if if you wanted to get a yield from your Bitcoin, you know, you had to hand it out. You had to hand it to a third party and get and get some, you know, some counterparty risk in there. And, clearly, that that caused huge issues in 2022.

31:04 Not naming any names, but, I I think I think it's never it's never been part of our sort of core ethos in terms of, you know, holding onto our assets, keeping custody of them, and making them and making them work. And and it's only really now that, that all the pieces have come together, to to to to allow us to do it. And then, of course, the last bit, know, we've been planning this a while. We hadn't fully considered that the market would fall to this level. So we're we we see this as an attractive entry point, and, you know, we'll be DCA ing as best as we can. It's a compelling setup, shall we say. That's great. Thanks indeed, George. I guess you've covered a lot of this in the presentation, but what can we expect from KR1 in 2026?

31:54 Well, yeah, when we've you know, what we're announcing with this new infrastructure strategies is really it's the word is evolution. You know, it's not a revolution. It's just evolution. We've been, you know, hard at it for ten years, but, you know, we've we see this opportunity for us in 2026 from a model primarily centered around staking in early stage token investments towards a more broader, more diversified strategy that integrates core blockchain assets in into an active income generating financial and technology infrastructure And that's that's really the sort of the complementary operation that we're gonna be we're we're we're we're kind of running, putting up to 2020% of the company's assets in into focusing on that.

32:49 So, rather than holding on the balance sheet, we're gonna be using them, sweating them, working them, you know, risk risk manage with Nexus. But we feel we're in a we're two steps, three steps ahead of the the pack on this, and we feel that's, like, the new the the the next great opportunity for for for KR1. That's excellent. Thank you. Next question we've got here. How are you funding the Bitcoin investment? Is there any share price dilution? So as Kel said, we you know, we're we're we're looking to utilize up to 20% of our holdings, in this new financial infrastructure strategy. The relevant acquisitions are being funded, from existing income streams, but also adjustments to our some of our, what what you might call, under underperforming holdings, that the company has.

33:41 It's all obviously under review all the time in terms of in terms of, you know, what the board is is thinking and certain market market conditions. And, you know, while we do have authorization from shareholders in place in connection with the placing program as which is detailed in the prospectus. There's no immediate plans to fund the initiation of our financial infrastructure strategy through share issuances. So no price dilution. Fantastic. Thanks, George. And touch on AI slightly. What do think about AI related crypto investments? Well, I mean, they're they're the next golden age of of crypto is AI layer on top of it. What we saw earlier on and some of our portfolio companies did the pivot is that it it it makes sense in some products and services, but not in others. You can't put lipstick on a pig. Right? But we blockchains know are automatic, autonomous verified software with micropayments on top of them, and AI needs that.

34:43 It needs to operate with with that to to to to get to scale. AI needs digital assets, assets, blockchains, and crypto, especially these agentic AI models which also use crypto with micropayments. So it's the holy grail for this this new global infrastructure at scale. And, you know, k one, obviously, we're super excited about it. You know, we we are looking at projects, obviously, and, you know, we doubled down on Ethereum because, as I mentioned earlier, we they are fully aligned with this vision. And they've developed this new unit within Ethereum to help promote this agentic protocol upgrade.

35:33 There's actually actually a a protocol protocol upgrade upgrade gonna happen on Ethereum for this for people who who wanna develop new AI systems on on top of it. So, yeah, we're very excited about it. Fantastic. Thanks, Carol. And And what steps the company taking to close the NAV share price gap? Well, like everything, it's a matter of demand supply market dynamics and isn't directly in our control. But having said that, we're positioning KR1 to be the institutional blue chip digital asset specialist on the London stock market, where we will bridge public markets and digital assets as we have done since 2016. And so we will be working with our broker, Singer, Singer Capital Markets, and we will obviously address closing the gap.

36:26 And I think also through our performance, through the financial infrastructure strategy that we're embarking on, the company will be less resilient on the performance of our staking technology infrastructure operations as a whole, and we'll have this new element to bring to the equation. And we will keep allocations under review by the Board, obviously in line with market conditions, trying to seek the highest potential for resilient income and long term capital growth and value creation. And then lastly, I'd say that while we've built our in house IR function now since the London Stock Exchange listing and we can all look forward to higher cadence in terms of comms and news flow.

37:12 And we will try to get our story out more broadly. And, yeah, looking forward looking forward to doing that. Fantastic. Couple of questions here against the launch of validators. Charles, thanks indeed for that question as well. How do you expect the launch of planned validator nodes for Ethereum, a 138 nodes, and Polkadot three nodes to impact this recurring cash flow in the first half of twenty six? This is, are we gonna make more money question? Over time, yes. Because it's more more complex running your own validators. We're we're gonna be deeply in the system. So, initially, no major changes to the underlying financials, but be improving those over time. We're we're we're playing the same role as before, but we've got a much higher control and ownership of these operations.

38:02 And that's playing a more active role in the network with governance as an example. And this will will get us the additional benefit and upside of gaining access to compelling venture opportunities because we're in in sort of further in the system. So, yeah, we've yeah. I I hopefully that answers the question. Over Over time, time, you know, it's gonna it's gonna allow us more opportunity by running our own validators. Fantastic. Thanks, Kurt. Arthur, thank you for your your question here. Just a a real extension on Polkadot. KR1 had major positions in Polkadot and Polkadot ecosystem token. What happened to these positions, and what are your latest thoughts on Polkadot? Has it failed versus major change like Ethereum or Solana?

38:51 I can I can step in for that? I think, you know, we've all been you know, we love Polkadot initially, you know, and over the over the time. We still believe it's got they're they're releasing the jam protocol this year, but it has underperformed. So, yeah, it it's on one of the assets that is you we're using in the in the 20% to to to to reallocate. But, you know, we've done incredibly well out of Polkadot, and we're looking to the future on it. But, yeah, it's it's underperformed. You can't deny that. You just look at the numbers. So, yeah, it's a poor poor perform performing football player in the football team. And as you can imagine, it's on the subs bench being shouted at by the manager.

39:38 And maybe some of it's on the transfer market. So, yeah, hopefully, that answers your question. Thank you very much indeed. We've had a couple of questions around your communication strategy. Just pick one piece out here. Will we be changing your communications approach going forward? Why have you announced the strategy now? Well, the truth is, under the FCA scrutiny that we were under in most of 2025, we effectively had our hands tied. You know, we were we were, yeah, as I say, under extreme scrutiny, during that uplisting time, and and it it wasn't it wasn't a particularly welcoming environment.

40:24 No one had ever listed on the stock exchange in in our particular app asset class in terms of a diversified portfolio. And we we effectively couldn't really communicate much, and we couldn't really change the sort of core elements of the company as such. And and and and the process took, you know, a long time. You know, it was a it was a a huge baptism of fire for the team to go through this process, but, you know, hugely excited that we we we managed we managed to do it. But yeah. So so now we're through, and and and like I say, you know, we're now we're now really beginning to concentrate fully on our IR and comms. And yeah, like I said, expect a much higher output of PR into 2026.

41:13 That's great. Thanks very much indeed, George. Next question, Steve. Thank you. Can you explain how we can get a regular yield from any Bitcoin stakes? I'll yeah. I think we've we've covered that off. Right? You know, we're gonna be providing Bitcoin as liquidity, and we're gonna, you know, risk mitigate that with Nexus Mutual. So that's basically you know, we don't wanna go too far into it right now. If anyone's very interested in it, they can all always contact us privately. We can run through what we're gonna do. In generalistic terms, we're gonna get use Bitcoin to to work in an environment that's got risk mitigation and coverage on it.

41:59 So that will, you know, create a sort of more positive environment for it to to kind of sweat and work. Yeah. Fantastic. Thanks, Arun, Rim, thank you. What are your thoughts on Zcash and privacy coins? Is this an area we're exploring? Well, I think, you know, it's had a long time in the market. Privacy is obviously a a key a key concern. You know, has it has it has it had, you know, its its day in the sun? There is there is this element that Zcash always seems to pump just before Bitcoin goes into the depths of a bear, which seemed to happen exactly this time around as well. So may maybe it's a maybe it's a, you know, a a way of look looking for when the bear's gonna come.

42:51 It it's it's it's not been on, you know, a core part of our our our, you know, view of the ecosystem. To date, privacy has been far more interesting to us in the Ethereum ecosystem, and and what what elements, you know, are are required there from a smart contract perspective and, obviously, you know, zero knowledge proofs. And a lot of there's been a lot of privacy innovation that's come out come out of the the wider ecosystem. But never say never, and and, obviously, yeah, we understand privacy is a key element coming up. So yeah. You you never know. I'd I'd just like to add one point, actually. The the ZK point is crucial because without that on Ethereum, then companies and enterprises won't use the public blockchain to to kinda run transactions, run payroll, you know, run run all sorts of contracts on it. It really needs that ZK sort of shielding element to it. And once that's in, then, you know, that opens that blows the the way for enterprises to for more enterprises to come and join Ethereum and put their operations on chain.

44:03 Fantastic. Thanks, Noah. Pradeep, thank you. What's the reason for less slash no venture investments in the past year? Is that the quality of ventures are low or venture investment is not announced yet? But as we I can grab that one. I think, know, what we saw is, you know, the landscape changed. You know, we had there was no real, real there was there was a reality gap between private valuations and the secondary markets last year, and it was a the disconnect was quite big. So really over overinflated seed round and follow on round valuations in comparison comparison to to the the secondary market, you know, with a lot of clone type projects.

44:48 And alongside that, sort of very aggressive American VC money taking the whole round, you know, type approach. So we didn't you know, we we kind of sat on the sidelines a bit, and investing also has hit that kind of model. If you know KR1 well, we did you know, we turned $7,075.05 k into a 130,000,000 with Celeste. We got, you know, quite a few million out through staking rewards, but we because we're the the vesting locks, we couldn't get that value out, and we were extremely frustrated situation. So the vesting model has, you know, which is like a traditional VC model, has kind of dampened that initial flush where you get all the tokens unlocked. And, you you know, know, the the price price would would settle and find itself, which actually feels like a fair model.

45:40 So, basically, if you combine all those elements into the sort of investing landscape, then, you know, sometimes it's good just to sit on the sidelines because the deals just aren't that interesting. I think, you know, famously, Fred Wilson from Union Square Ventures didn't do a single investment in twenty two thousand and nine. He just didn't like what he saw. And I think you've gotta be as an investor, you can make one good decision a year. You You know, know, we we started off at a rapid rate, but, you know, I think, you know, where we are with the market, I think you've just gotta adapt and, you know, adapt your strategy to to what's actually going on around you. Good. George, thank you very much indeed. I think we've covered off the main themes of the questions we've had through, and, of course, the company can respond to all questions submitted today, we'll publish responses where appropriate to do so on the platform.

46:26 I'd like to say thank you for all the attendees today. Could I please ask investors not to close the session to be automatically redirected to provide your feedback in order the management team can better understand your views and expectations. It's going take a few minutes to complete, and there's greatly value by the company. On behalf of the management team of KR1 PLC, we'd like to thank you for attending today's presentation. That concludes today's session, and good morning to you all. What what