KR1 has seen as much as £50m wiped from its portfolio since the start of the year as the crypto investment firm warned of a 'period of consolidation' in the market.

The Isle of Man-based digital asset investment firm today reported a fall in the value of its assets from £196m at the end of 2023 to £146m

Isle of Man-based digital asset investment firm KR1 (KR1.L) has seen as much as £50 million wiped from its portfolio since the start of the year as the firm warned of a "period of consolidation" in the market.

KR1 said on Monday that the value of its assets fell to £146 million as of June from £196 million at the end of 2023, a drop of more than a quarter. The consolidation comes amid a retreat in the price of Bitcoin from the all-time highs reached earlier this year.

"Since Bitcoins' all-time high this Spring, the crypto markets have entered a period of consolidation, once again offering both seasoned and new investors valuable lessons in resilience and long-term thinking," KR1 said.

The Aquis-listed business added that its portfolio had been boosted by its investment into modular blockchain network Celestia, which it said had been boosted by "Ethereum's roll-up-centric roadmap."

However, the Celestia coin has more than halved in value since the start of the year. Shares in KR1 were unchanged in the opening minutes of trade in London.

KR1 said it had been encouraged by the London Stock Exchange's approval of Bitcoin and Ethereum Exchange Traded Notes for trading on the exchange, which it said represent an "opportune moment for the new government and the Financial Conduct Authority to further embrace the potential of blockchain and digital assets."

But the firm added that the developments "merit further review to hopefully loosen the 'blanket ban'" on crypto and digital asset firms being admitted to the FCA's official list, which has been in place since the FCA's Cryptoasset Taskforce report was published in October 2018.

"We firmly believe that the UK has the potential to be a leader where digital asset firms have the clarity needed to invest and innovate, while customers receive the necessary protection," KR1 said.

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