Phoenix Digital - 2024 Q1 Crypto Holdings Trading Update

Press Release

2 April 2024

This announcement contains information which, prior to its disclosure, was inside information as stipulated under Regulation 11 of the Market Abuse (Amendment) (EU Exit) Regulations 2019/310 (as amended). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

Phoenix Digital Assets PLC

("Phoenix" or "the Company")

2024 Q1 Crypto Holdings Trading Update

Phoenix (AQSE: PNIX), an investment firm, announced on 20 March 2023 its intention to publish Quarterly Trading Updates in advance of the liquidation of its Crypto holdings and to return value to its shareholders by way of a tender offer for its shares following the next BTC halving (expected during April 2024).  

In its circular dated 11 April 2023, the Company also stated that the price at which the Company might purchase its ordinary shares would not be less than the nominal value of an ordinary share and would be not more than the greater of 3.5p (being the net asset value of the Company per share as at 6 April 2023) and an amount equal to the net asset value of the Company per share as announced by the Company on a Regulatory Information Service from time to time.   The directors of NFT have resolved that the price at which the Company will purchase its ordinary shares will be an amount equal to the net asset value of the Company per share as announced by the Company on a Regulatory Information Service from time to time.  The Company will proceed with the tender offer following the Bitcoin halving (currently anticipated to take place in April 2024) and before the end of 2024.

Crypto Holdings March 2024 Quarter Update

The Company has unaudited Crypto and Stablecoin assets with a valuation of £71.4million (7.07p per share) as at 31 March 2024. The major components of this are as follows:

Token                                                                          Quantity                       Valuation (£m)

Total Company NAV March 2024 Quarter Update

The Company has unaudited Crypto, Stablecoin, Cash and Equity Investments with a valuation of £74.5m (7.38p per share) as at 31 March 2024. The components are as follows:

Due to the success of the Company's investment policies the Company is carrying significant unrealised profits in its Crypto holdings and these will be realised during the share buy back. Doing so crystallises a taxation liability. The size of this taxation liability will depend on the size of the buy back which has not yet been determined. However, the Company can advise that it anticipates the taxation impact to be in the range of 0.7p to 1.1p per share.

The Company's current share price of 3.65p represents a 48% discount to its current unaudited Crypto & Stablecoin valuation, a 51% discount to its current unaudited Total NAV and 42-45% discount to its current unaudited Total NAV net of expected tax charge.

The Directors of Phoenix Digital Assets PLC take responsibility for this announcement.

 This announcement may contain "forward-looking" statements and information relating to the Company. These statements are based on the beliefs of Company management, as well as assumptions made by and information currently available to Company management. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.

For further information please contact:

About Phoenix:

Phoenix Digital Assets PLC invests in a diversified portfolio of cryptocurrency, and/or in companies or funds which have exposure to NFT or blockchain technology. The Company's leadership team have an extensive track record in the cryptocurrency sector and previously founded Argo Blockchain PLC, a global crypto miner. Phoenix is headquartered in London, UK and its shares are listed on the Aquis Stock Exchange Growth Market under the ticker symbol PNIX.  https://www.getphoenix.co.uk