NFT Investments Plc drops plan to acquire Pluto Digital

UK-based NFT Investments Plc has announced it will not proceed with its proposed acquisition of Pluto Digital Plc., although it will continue to evaluate other opportunities in the NFT space that, it believes, would add to shareholder value, the company said in a statement. 

Although NFT Investments did not specify any reason behind its decision to not acquire Pluto Digital, it said the company is well positioned to take advantage of the recent market correction in the blockchain and digital assets sectors by investing at attractive valuations. 

Trading in the shares of NFT Investments Plc, which were suspended pending conclusion of the discussion pertaining to Pluto Digital, will resume now. On January 24, the company signed a non-binding letter of intent to acquire Pluto Digital for £96 million, to be paid in NFT Investments’ shares, subject to shareholders approval. Pluto Digital builds infrastructure in the decentralised finance (DeFi) space. 

An incubator specializing in the NFT market, NFT Investments Plc has made seven investments and one exit in early-stage growth technology and media businesses engaged in NFT and digital assets totalling £5.8 million. It invests in a diversified portfolio of NFT, cryptocurrencies and in companies or funds which have exposure to NFT or blockchain technology. 

NFT Investments made a profit of £1.73 million on its investments to acquire NFT-focussed gaming company, Kodoku Studios Ltd, a gain of 349%, as a result of its takeover by Pioneer Media Holdings Inc. in November for £2.225 million in cash and shares.

In terms of its outlook for the sector, the company said the NFT sector continues to enjoy strong growth as digital assets gain increasing popularity with collectors and investors as a new asset class. It said the NFT opportunity is the first example of blockchain monetising at scale and NFT are the future of digital ownership and commerce. 

“The NFT sector continues to show strong growth and we have a cash-rich balance sheet to take advantage of new investment opportunities to generate long term value for shareholders and deliver a sustained increase in net asset value, which currently amounts to 3.43p per share”, Jonathan Bixby, executive chairman of NFT Investments was quoted in the statement. 

The company’s net asset value amounted to £34.38 million as on December 31, 2021, comprising cash and cash equivalents of £21.9 million and net book value of investments including cryptocurrencies of £12.5 million. It has established significant positions in the following cryptocurrencies: BNB, Bitcoin, Ether, XBD, FLOW and DOT. 

NFT Investments has filed an application for listing on Canada’s NEO Exchange in December, the statement said. The shares of the company are currently listed on the Acquis Stock Exchange Growth Market (AQSE) and the company claims itself to be the first ever NFT vehicle to be listed in a major jurisdiction worldwide. It had raised £35 million before expenses through a floatation on the AQSE in April 2021, which was a record for the exchange. 

The company said the funds raised through the AQSE floatation are used to invest and nurture a range of innovative businesses that are applying potentially disruptive technologies spawned by the blockchain and digital revolution.