Started by Norwegian founder and fighter pilot Bjorn Kjoss and his family, Norwegian Block Exchange, the cryptocurrency exchange plunged sharply into Euronext Growth after providing the numbers on Tuesday.
The stock fell more than 13 percent in poor trading, and trading automatically stopped for a while as a result of the sharp drop in prices. Then the share bounced back a bit, dropping about nine percent at 15.30.
The company lost NOK 11 million before tax expenses in the fourth quarter of last year, compared to a loss of NOK 7 million in the same quarter last year.
He had 20 million chasing money
NBX wrote that on New Year’s Eve it put about 20 million NOK into regular cash reserves, which the crypto firm calls “fiat” assets. It also has 5.4 million NOK in cryptocurrencies and 1 million NOK in accounts receivable.
– Aren’t you bothered by having a lot of paper money?
– Hahahaha. Our calculations are in NOK, and we try to reduce volatility, it has to be this way. We’re also an exchange industry, so we’ll continue to have exposure to a lot of different currencies, says senior manager Stig Kjos-Mathisen.
However, the company is using the funds quickly, and 12.7 million NOK was spent in the fourth quarter. According to the report, this is mainly due to listing costs, costs related to licensing modifications, and the hiring of five new employees. Weaker crypto markets in November and December also affected the company.
If the money continues to flow at the same speed, the fund will be empty by summer. However, the company wrote that management and the board of directors “will explore ways to fund further growth.” Bjørn Kjos is the Chairman of the Board of Directors of NBX.
We’ve had good customer group growth now, but there’s an investment cost associated with that. It takes about six months from the time you get a customer, for the customer to start providing returns. You can grow quietly and try to grow through the process, or you can give it a boost, says Kjos-Mathisen.
– Using the capital increase?
It is one of many ways to finance growth. We also said we would go ahead with plans to apply for a banking license or buy a bank and offer banking services. We’ve been informed that this will incur greater costs, so the capital increase will not be a surprise to the market, so to speak.
will surprise
Trading volume on the platform reached NOK 370 million in the quarter, an increase of 441 percent over the fourth quarter of 2020, and 25 percent over the third quarter of 2021. The platform had 18,000 verified users at the end of the fourth quarter, an increase of 115 percent over the previous year.
The company was listed on the low-threshold Euronext Growth market in December last year, and has since fallen by more than 40 percent. The market capitalization of the company is 450 million Norwegian kroner. The Kjos family controls more than 40 percent of the shares through various companies.
The report states that the company is also working with strategic partnerships. According to Kjos-Mathisen, this could be anything from business partnerships or mergers and acquisitions.
– This is something we have been working on for a long time, but it is always difficult to say when this will start to appear. I hope to be able to surprise my owners with some really good news in not too long, says Kjos-Mathisen.
He believes that the company will be able to give shareholders a nice increase in value in the long run.
– I am 100% sure that the company will deliver.(Terms)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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