par Coinsilium Group Limited (isin : VGG225641015)
Coinsilium Group Limited: UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
Coinsilium Group Limited (COIN) COINSILIUM GROUP LIMITED
("Coinsilium" or the "Company")
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE SIX-MONTH PERIOD ENDED 30 JUNE 2024
Coinsilium Group Limited (“Coinsilium” or the “Company”), the Web3 investor, advisor, and venture builder, is pleased to announce its unaudited consolidated interim financial statements for the six months ended 30 June 2024. Financial Highlights:
Corporate Highlights:
Post Period End Highlights:
The Directors of Coinsilium Group Limited take responsibility for this announcement. For further information, please contact:
DIRECTORS’ STATEMENT The Company ended the period under review with over £0.4m cash at bank and £1.1m in other current assets including Cryptocurrencies, tokens and rights to future tokens. The digital asset markets have recovered significantly since the start of the reporting period, which has had a markedly positive impact on the Company’s cryptocurrency holdings as the profit from continuing operations increased to £29,545 from a loss of £104,247 in H1 2023. Throughout the period, Coinsilium continued to make solid operational progress across its investment and advisory activities, and we are pleased to provide details of developments and significant news released to the market during the reporting period:
Investment Portfolio Update Indorse and Byzant Web3 Ecosystem On 29 January 2024, the Company provided an update regarding its investee, Web3 development company Indorse Pte. Ltd. (“Indorse”), and the ongoing collaboration with Indorse on the ‘Byzant Web3 Social Network Ecosystem’ (“the Collaboration”). The primary focus of this collaboration has been on the development of a range of Web3 applications. One such application, the Bastion Wallet was launched in August 2023 and enables both seasoned crypto users and newcomers to seamlessly interact with Web3 applications. Additionally, Indorse’s technical team has been working closely with A-ADS one of the longest-established and largest crypto and Bitcoin advertising networks, to develop Adbazaar, a decentralised advertising platform tailored for Web3 advertisers and publishers. The involvement of A-ADS, whose core team brings 13 years of experience in crypto-based advertising, alongside Coinsilium and Indorse, reinforces the depth of expertise driving the development of the Byzant Web3 Ecosystem. Web3 advertising presents a highly promising but still underdeveloped opportunity compared to its well-established role as a revenue driver in Web2 social media. Coinsilium views early movers in the Web3 advertising space, such as Adbazaar, as being well-positioned to capitalise on this emerging market. While Adbazaar is still in its development phase, the project holds significant potential to leverage early entry into the Web3 advertising landscape. Backed by industry veterans like A-ADS, the project aims to position itself as a competitive player, ready to capitalise on the nascent revenue opportunities in this sector. Throughout the period, Adbazaar has been the primary focus for the Collaboration, due to its clearer path toward commercialisation and potential to generate early revenues. As the project gains traction in the Web3 advertising market, it will provide a solid foundation for developing the additional applications within the Byzant ecosystem. This approach allows us to focus on more immediate opportunities, while the broader range of applications will be prioritised once Adbazaar is fully refined and ready for launch. Managing these steps carefully is essential for ensuring long-term scalability and success. The latest version of the Adbazaar platform is currently being tested by A-ADS, marking a key milestone in this strategy.
Greengage Coinsilium holds an equity investment in Greengage Global Holding Limited (“Greengage”). Greengage’s core business activity centres on providing distributed e-money account services through partnerships with regulated payments-as-a-service firms, tailored to entrepreneurs, SMEs, family offices, and digital asset firms. Greengage offers its clients personal and business e-money accounts in over 50 currencies, including GBP, EUR, and USD. Clients benefit from 24/7 account access and a dedicated relationship manager for personalised support. The services include faster payments, CHAPS, and SEPA payment services, with access to SWIFT payments and Foreign Exchange (FX) depending on the chosen regulated partner provider. Greengage also provides value-added services through a network of third-party providers. One such service is B2B loans, with the platform facilitating over a quarter of a billion USD in lending since its inception. An example of an innovative product is lending in fiat against tradable cryptocurrencies on a non-recourse basis to provide growth capital, alongside other unique financial solutions. During the period Greengage notified Coinsilium that it has signed an agreement with a new regulated partner to bring forward the launch of its USD currency accounts (as well as several other currencies including CHF, SEK and CAD) along with FX and SWIFT payments for its clients. This is significant news as there still remain very few "crypto friendly" payment providers offering USD accounts. Greengage management expect that this new agreement will both help to attract new clients for their services as well as strengthen their existing client relationships. Greengage also advised that they continue to maintain a healthy pipeline for new account opening submissions. Post Period Developments On 5 July 2024 Greengage announced news of a new collaboration with global cryptocurrency exchange Coinbase to originate SME debt on the Coinbase Diamond Protocol. This collaboration seeks to utilise blockchain technology to provide SMEs with access to capital, promising a more efficient and transparent financing solution. The Coinbase Diamond protocol enhances the issuance and management of private capital. Using blockchain technology, the protocol issues native digital debt, making the process more secure and accessible to a broader range of investors. In early September Greengage announced that it has been selected from over 1,228 applications to join 20 other startups in Hub71’s 15th cohort in Abu Dhabi, as part of the Hub71+ Digital Assets program. At the same time, Greengage announced that it has established its first office in Abu Dhabi from where it aims to scale and grow its operations within this global tech hub. Further information on Greengage is available in our Web3 report, available for download from the Coinsilium Website: https://coinsilium.com/investors/web3-reports
Coindash Coindash’s main product is the SSV Network. Ssv.network is a fully decentralized, open-source ETH staking network, based on Secret Shared Validator (SSV) technology. Ethereum validators are required to stake 32 ETH and operate a software validator client alongside legacy and Beacon Chain nodes. This process introduces complexity, especially as the creation of a validator results in a crucial Validator Key responsible for transaction signing. SSV Network addresses this complexity, enhancing validator key security, and delivering benefits to the broader Ethereum network, staking pools, services, and individual stakers. There are currently 11,233,472 SSV tokens in circulation. As of 16 August 2024, these were the SSV Network metrics: • 878 Operators • 41,642 Validators • 1,332,544 Staked ETH • USD3.495Bn TVL (Total Valued Locked)
Revaluation of Coindash Interest As of 31 December 2023, the price of the SSV token stood at $6.83 per token. By 30 June 2024 at the end of the reporting period, the token price had increased to $36.09, with a peak of $61.30 per token recorded on 26 March 2024 with a fully diluted market capitalization for the total supply of SSV tokens at US$713.4 million. Given the substantial SSV token holdings in Coindash's cryptocurrency treasury and the significant price appreciation of SSV tokens throughout the reporting period, the Company has determined to revalue its interest in Coindash. This decision is grounded in the material increase in the value of Coindash’s liquid SSV holdings, and the revaluation is applied pro-rata to the Company’s stake in Coindash. While the price of the SSV token experienced a significant increase of 528% over the reporting period, the Company’s revalued its stake in Coindash by 346%, adjusted to reflect the volume-weighted average price (VWAP) performance of the SSV token. This adjustment takes into account the fluctuations in SSV tokens market liquidity and its overall trading volume during the period.
Silta Finance Coinsilium holds a convertible loan and option interest in Silta. During the period, Silta notified Coinsilium that it had received an investment from a top 10 global infrastructure development bank (“Bank”) as part of a strategic partnership agreement to build a climate financing marketplace, powered by AI, for bankability and sustainability assessments. This strategic partnership aims to help support governments, infrastructure developers, and financial institutions to reach their goals of deploying US$800B towards Climate Financing by 2030. Silta’s strategic partnership with the Bank aims to create the benchmark for climate financing due diligence, thereby unlocking an US$800B opportunity within Asian markets, opening the door to a US$1.3T global market for projects driving the transition from fossil fuels to renewables. Post Period Developments In a recent update Silta advised its shareholders that is has been building on its work over the last 8 month and is now working on a contract extension with a global bank to continue the development of its white-label solution as they prepare to go into production-grade and publicly launch the platform. On 14 September 2023 Coinsilium announced that Seedcoin, its 100% owned Gibraltar subsidiary, had signed a Convertible Loan Agreement and Option Agreement with Silta as a cornerstone investor in their funding round. The Convertible Loan Agreement provided a loan principal amount of USD50,000 at a pre-money valuation of USD5m. The loan was granted for a period of six months, converting at maturity into 22,306 new common shares of Silta at a price of USD 2.2416 per share. As at the time of this report we note that there has been a delay in the issuance of the new shares, and it is expected that the new shares will be issued to Coinsilium within the coming weeks. The Option Agreement for up to USD500,000 provides the rights to subscribe to up to 163,575 new shares in Silta at a pre-money valuation of USD7.5m valid for 12 months from 8 September 2023. An addendum to the Option Agreement was executed on 16 September 2024 whereby the parties agreed on an extension of the Long-Stop Date by 6 months which effectively means that the Option Agreement will now be valid till 7 March 2025.
Web3 Investment Portfolio
Yellow Network Coinsilium holds a Simple Agreement for Future Tokens (“SAFT”) in Yellow Network, a Layer-3 decentralised Broker Clearing Network powered by State Channels used for communicating and trading between brokers and aggregating liquidity of connected nodes. Exchanges, brokers, and trading firms connect to the P2P network using a unified communication protocol. The main target of Yellow Network is to interconnect all blockchains unlocking access to liquidity for truly decentralised, cross-chain and ultra-high-speed trading. The Yellow Network public launch and token listing is slated for Q4 2024. The token listing is a critical milestone since, once tokens are issued and listed on an exchange, this will provide for a mark-to-market valuation reference point for Coinsilium’s investment and potential liquidity event subject to vesting terms. Under the terms of the SAFT, Coinsilium will receive USD200,000 in value of YELLOW tokens, vesting over a period of time. At this stage the Company cannot disclose specific details regarding price or number of Tokens to be received. Further details will be provided by way of an update to the market in due course, when the Company is able to do so. Post Period Developments On 18 September 2024 Yellow Network announced that it had closed a US$10 million seed round led by Ripple co-founder Chris Larsen and other notable investors including leading Ethereum developer Consensys, crypto market-making and trading firm GSR and crypto native VC firm Moonrock Capital. The Yellow Network public launch and token listing is slated for Q4 2024. Further information on Yellow Network is available in our Web3 report, available for download from the Coinsilium Website: https://coinsilium.com/investors/web3-reports
GGs.io Coinsilium holds a SAFT in GGs.io, as announced on 22 June 2022. GGs.io serves as a gateway to the Latin American (LatAm) market for AAA and Web3 game studios and is currently in the process of establishing a gaming-focused fund aimed at acquiring and managing digital assets in the gaming sector. Over recent months, GGs.io has entered into SAFTs and agreements with reputable Web3 gaming studios, acquiring tokens for Web3 games that they believe have the potential to become market leaders within their respective genres. GGs.io’s investment strategy is focused on acquiring tokens from what they identify as the top 1% of games, particularly from studios that succeed in replicating or improving upon existing Web2 game franchises. The Directors of Coinsilium believe that the GGs.io team possesses the expertise needed to identify future leaders in the Web3 gaming space, drawing on their experience with titles such as League of Kingdoms, Champions Ascension, FTW by Jungle, Off the Grid, RavenQuest, and Gunzilla. GGs.io has advised Coinsilium that it will continue to support gaming studios with LatAm market expansion, particularly those issuing tokens to be held by their future gaming fund. Alongside Coinsilium, other notable investors in GGs.io include Orange DAO, Boost VC, Ripio, and strategic angels from the BAYC community and the entertainment industry.
Ember Sword Web3 Game Ember Sword is a modern MMORPG crafted by veterans of both the gaming industry and competitive gaming, from world champions to e-sports legends. The team behind Ember Sword has been a part of creating some of the biggest games in the world: AION, Cyberpunk 2077, Diablo 3, Guild Wars, Hitman 1/2/3, Kingdom Come: Deliverance, League of Legends, Mafia: Trilogy, Star Wars: Galaxies, The Witcher 2/3, Titan Quest, Valorant, World of Tanks, World of Warcraft. Experience from top studios in entertainment and the games industry, from Activision, Blizzard, Disney, EA, Google, King, MARVEL, Microsoft, National Geographic, RIOT, Unity, VIACOM, YouTube, Wargaming. During the period, the Company acquired an unspecified number Ember tokens via a SAFT with a linear vesting token distribution which will complete by August 2025.
Other Corporate Developments
Subscription and Placing On 8 March 2024, Coinsilium announced a strategic financing done via a combination of a placing and subscription, raised £472,500 through the issue of 18,900,000 new ordinary shares of no-par value (“Ordinary Shares”) in the Company at an issue price of 2.5p per share (“Financing Shares”). Included within the Financing, Malcolm Palle (Executive Chairman) and Eddy Travia (Chief Executive Officer) participated with a subscription of £40,000 in total. In addition, 3,356,000 Ordinary Shares were issued on the same terms as the Financing Shares for payments totalling £83,900 in respect of a broad range of business support, marketing and communications services, designed primarily to broaden awareness of the Company’s value proposition and attract a wider range of on-market investors (“Service Shares”). Each Financing Share and Service Share included an attaching warrant to subscribe for a further new ordinary share at an exercise price of 3.75p and with a life to expiry of 3 years from Admission to trading of the new Ordinary Shares, pursuant to the Financing (in total 22,256,000 “Financing and Service Warrants”). The Financing underpins the Company’s working capital position and importantly, enables an acceleration of certain operational and investing activities at a time when AI and Web3 are rapidly advancing and Coinsilium wishes to remain at the forefront of various Web3 technology initiatives.
Advisory Services – LC LITE/ NEXADE On 20 February 2024 Coinsilium announced it had signed an agreement with global trade exchange platform LC Lite (“LC Lite”) for strategic advisory services in respect of the forthcoming token launch. LC Lite was recently acquired by Incomlend, a regulated global invoice finance marketplace for SMEs with licenses to operate in Singapore and in Hong Kong. LC Lite aims to bring Web3 decentralised technology to Incomlend, with improved marketplace liquidity, multi-currency solutions for cross-border export financing and a broad usage of stablecoins. The project has since been rebranded and launched as NEXADE and is well positioned to capitalise on emerging business opportunities from within the fast-growing digital asset market. The scope of the work undertaken by Coinsilium includes advising LC Lite on its project token economics (Tokenomics) ahead of its planned token launch, slated for Q4 2024. Additionally, Coinsilium is facilitating introductions for LC Lite to potential partners drawn from Coinsilium’s extensive network of major service providers and cryptocurrency firms. Advisory service terms pertaining to advisory engagements are commercially sensitive and subject to mutual confidentiality agreements. Typically, an agreement will include a ‘sign on’ payment and a final success payment. The success payment will usually be a fixed fee, denominated in cryptocurrencies such as Bitcoin and Ethereum or in project digital tokens and will be payable on the successful completion of a project’s Token Generating Event (“TGE”). Further information on NEXADE is available in our Web3 report, available for download from the Coinsilium Website: https://coinsilium.com/investors/web3-reports
New Web3 Industry and Portfolio Reports On 3 April 2024 Coinsilium announced the launch of a new series of Web3 industry reports. These reports aim to provide investors with a greater understanding of the emerging Web3 space, offering insights into the applications, use cases, and the blockchain technology underpinning it. The reports also feature some of the projects that make up Coinsilium’s investment and advisory services portfolio. To-date we have produced seven reports, all of which are available for download from a dedicated section on the Coinsilium website: https://www.coinsilium.com/investors/web3-reports
Post Period Events Strategic Web3 Collaboration with Liteflow On 2 July 2024 Coinsilium announced that it had signed a Memorandum of Understanding (“MoU”) with Liteflow, Inc (“Liteflow”), an experienced Web3 and NFT technical developer. The MoU is the first step in a planned long-term strategic collaboration between Coinsilium and Liteflow, which aims to provide financial backing, comprehensive advisory services, and cutting-edge technological resources to help budding companies navigate the complexities of the Web3 landscape and maximize their chances of long-term business success.
SAFT to acquire Otomato Web3 Automation Protocol Tokens On 3 July 2024 Consilium announced that it had entered into a SAFT with the Otomato Web3 Automation Protocol. Otomato is designed to simplify interactions with DeFi platforms through automation and user-friendly interfaces. It can help bridge the gap for DeFi traders without coding skills by automating complex tasks and providing clear, intuitive guides. Otomato.xyz is the first decentralised application of the Protocol and enables De-Fi traders to create and automate their own Web3 trading strategies as a succession of on-chain actions which can integrate reactions to off-chain events. User control and security on the platform are ensured through account abstraction (ERC-4337), making blockchain automation accessible and efficient for all users. Under the terms of the SAFT, Coinsilium will receive USD75,000 in value of the future tokens of the Otomato Web3 Automation Protocol in accordance with the 'Early Backers' token allocation pricing and vesting terms. Coinsilium also has the option to acquire an additional USD150,150 in value of the future tokens of the Otomato Web3 Automation Protocol in accordance with the 'Strategic' token allocation pricing and vesting terms. In addition, Coinsilium will earn 7.5% of revenues generated by the Otomato.xyz platform up to the time of the Token Listing Event, anticipated to occur during 2025. Revenues will be predominantly derived from affiliate fees from actions executed through integrated protocols and fees from transactions initiated via the Otomato.xyz platform. The public launch of the platform is expected by Q4 2024, when revenues would be expected to commence. Further information on Otomato is available in our Web3 report, available for download from the Coinsilium Website: https://coinsilium.com/investors/web3-reports
Elevate Health Elevate Health has progressed in its transformation into a decentralised science (DeSci) project, focusing on creating a platform that rewards members for contributing and accessing data, research, and treatments in preventative healthcare. The project is currently in discussions with a prominent, yet undisclosed, decentralised launchpad, which has raised approximately $1 billion for various token projects over the past three years. It is noteworthy that DeSci-related tokens have shown strong post-launch performance compared to other sectors. Elevate Health has advised Coinsilium that it is targeting a potential token issuance by the end of 2024. Further updates will be provided to the market as and when available.
Arcadian Youth Pte Ltd (formerly "StartupToken") StartupToken has successfully transitioned its business model to focus on Web3 Real World Asset ("RWA") tokenization, with an initial emphasis on the Bali real estate market. The company’s flagship application, Propex, is now in the advanced stages of development. Propex is designed to streamline the transaction of real estate assets by bringing ownership transfers onto the blockchain. This aims to automate and simplify the process for property owners and their counterparties by tokenizing property contracts into unique, programmable assets (NFTs). These NFTs can be used for various Web3 applications, such as trading, collateralized loans, and more. Propex offers real estate agents and notaries a minting service to create on-chain proof of ownership, while maintaining the existing system of record. The blockchain-based records serve as tamper-proof, verified copies that co-exist with the traditional system until full adoption of on-chain processes. While the initial market focus is on Bali, Indonesia, the Propex solution has potential applications in other regions beyond this initial market. The Arcadian Youth team recently updated the Company, reporting that the first development stage of the blockchain-based application has been completed. In this initial phase, the application allows users to mint ‘location NFTs,’ enabling them to participate in challenges and earn points. The second stage will introduce the ability for property owners to mint their real estate NFTs, with notary verification, unlocking access to decentralised finance (DeFi) and RWA exchange platforms. Additionally, the team informed us that their application for a grant from Lisk, a Layer 2 protocol on Ethereum and part of the Optimism Superchain, was successful. Lisk is focused on providing solutions for emerging markets through the tokenization of RWAs, which aligns well with Propex’s goals. We will continue to update the market with news and developments regarding Propex as the project progresses.
Director Share Dealings The following Trades were transacted on market by Directors Eddy Travia
Malcolm Palle
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