Coinsilium Group (AQSE:COIN, OTCQB:CINGF) has seen its cryptocurrency in treasury soar to more than $1.5 million in the wake of soaring markets.
In less than a month, the London crypto finance specialist has added over $400,000 (£292,490) to its treasury reserves. This represents a further 38.5% increase in the value of these assets, with total treasury value now standing at $1,512,822.
The news comes just one month after the firm reported that the value of cryptocurrency it held in treasury, which excludes additional cash on its balance sheet, had more than doubled to $1.09m.
Building value from active treasury management
Coinsilium now sports a market cap of $11.1m (£8.1m) with its share price expanding to 5.5p per share. That means the Bitcoin, Ethereum, ICON and RIF on the company’s balance sheet comprises over 13.5% of its entire market cap before taking into consideration cash at bank, the value of its investments, and the enterprise value of the business.
Chairman Malcolm Palle told ValueTheMarkets that it was a strategic decision to denominate these reserves in the most liquid cryptocurrencies.
Coinsilium also has $163,890.06 in RIF tokens due to vest monthly over the next 22 months.
The value of RIF has boomed by 45% in the last 30 days to $0.185 per coin. This has been helped partly by the huge liquidity spike from its successful 6 January 2021 listing on Binance, the world’s largest cryptocurrency exchange by volume.
RIF is the internal token of the RSK platform owned by IOV Labs, which made a £330,000 follow-on investment in Coinsilium in December 2020.
As Coinsilium noted in a 20 January RNS: “The company continues to actively manage its cryptocurrency portfolio and has adapted its treasury management strategy to maximise returns in the current highly active market cycle.”
Institutions fuel Bitcoin boom
Rampant global investor interest in Bitcoin and the cryptocurrency market since the end of 2020 has seen the price of the world’s largest cryptocurrencies soar. Bitcoin, in particular, is now valued at almost $700bn. Ethereum has a market cap of $145bn.
Widespread quantitative easing by the Federal Reserve, The Bank of England, the European Central Bank and the Bank of Japan is eroding the value of fiat currencies like the US dollar, the Euro and the British pound.
That’s why some of the world’s largest companies are now moving their treasury reserves away from cash and into cryptocurrencies. These include $6bn-valued Microstrategy (NASDAQ:MSTR), $102bn market cap payments giant Square (NYSE:SQ) and the billion-dollar fund SkyBridge.
Global demand for cryptocurrency from institutional investors, asset managers, insurance companies and pension funds is also accelerating in 2021. More of the world’s richest institutions now see cryptocurrencies as a long-duration asset to hold in place of gold or cash.
As Coinsilium put it in its latest update: “This demand is now fuelling a strong growth cycle in the overall blockchain and cryptocurrency sector, which in turn is providing highly favourable market conditions supporting Coinsilium’s own growth and development.”
NFT
Coinsilium’s entry into the digital asset and non-fungible token (NFT) market is also expected to be a source of cryptocurrency revenue generation in 2021, derived from the sales and trading of NFT’s on a digital marketplace the Company is building in partnership with Vietnam bases RedFOX Labs. This will support their first NFT project: a digital collectable counterpart for a crypto postage stamp to be issued by the Government of Gibraltar and scheduled to go on sale in Q2 2021.
Both Palle and the Coinsilium CEO Eddy Travia will participate alongside RedFOX CEO Ben Fairbank in this month’s StartupGrind webinar on 28 January 2021. Investors can register for free to attend the webinar, titled: “The Year for Non-Fungible Tokens & Gibraltar Crypto Stamp 2021”.