Interim Results

KR1 PLC

30 September 2026

KR1 plc

Wednesday, 30 September 2026

KR1 plc (“KR1” or the “Company”)

Interim Results for the six months ended 30 June 2026

KR1 plc (LSE: KR1), an onchain infrastructure company, is pleased to announce its Interim Results for the six months ended 30 June 2026 (“HY26”).

Holdings & Infrastructure Income Highlights

Highlighted digital asset aggregate holdings as at 30 June2026, reflecting the Company's strategic allocations and portfolio positions:

Ethereum (“ETH”), £7.3 million

Bitway (“BTW”), £4.0 million

Nexus Mutual (“NXM”), £3.6 million

Venice AI (“VVV”), £2.4 million

Celestia (“TIA”), £1.9 million

Redstone (“RED”), £1.7 million

Lido (“LDO”), £1.4 million

Bitcoin (“BTC”), £0.9 million

Gensyn (“AI”), £0.8 million

Bittensor (“TAO”), £0.6 million

As at 30 June 2026, net assets of £32.1 million, representing 18.07p pence per share and infrastructure income of £0.6 million.

Post-Period Highlights (1 July 2026 to Present)

Material NAV Recovery: Concurrent with this announcement, the Company has released its latest monthly update for August 2026, showing an unaudited NAV of £41.7 million (23.5p per share). This reflects a 29.9% recovery since the HY26 period end, driven by strong performance across core holdings and venture investments.

Bitway (“BTW”) Performance and Adjustment: The Company’s seed investment of US$300,000 in Bitway gives the Company a holding of 100,000,000 BTW, currently still subject to lock-up. While Bitway’s BTW token is trading in excess of US$1.00 on various trading venues, which would imply a position in excess of US$100 million, the Company applied an adjustment of 80% to discount the fair value of Bitway (as detailed further in the Infrastructure Income & Holdings updates), which reflects the Company's assessment of the realisable fair value of the holding relative to observed market price, taking into consideration market conditions and secondary market structure at this time.

Strategic Market Positioning: The convergence of AI and crypto has become an increasingly central focus of strategic activity, reinforcing KR1’s position as the London Stock Exchange’s only dedicated onchain infrastructure company that takes a thesis-driven approach to holding and operating productive digital assets. Recent Technology Infrastructure activities and allocations remained focused on high-growth networks and protocols powering this convergence, including Venice.ai, Bittensor, and Diem.

Financial Infrastructure Progress: Financial Infrastructure ("FI") pilots progressed during the period to test protocols, custody systems, and return modeling. Initial activity across Convex Finance and Yield Basis produced encouraging early results (~10% annualised return on deployed capital in Convex), informing the assessment of opportunities to scale this strategy.

"A challenging market directly impacted our HY26 performance, with NAV as at 30 June 2026 standing at £32.1 million (18.07p per share). However, since the end of June, digital asset markets have staged a meaningful recovery. This post-period momentum is reflected in our latest monthly financial update released today, which shows NAV recovering to £41.7 million (23.5p per share) as at 31 August 2026, representing a 29.9% increase since the period end.

This rebound has been driven by outperformance across our core onchain infrastructure allocations, reallocations particularly within onchain AI infrastructure and other strategic and venture positions, reinforcing the durability of our strategy and deep domain expertise developed over the last decade. KR1 enters the second half of the year with real optimism, uniquely positioned as the London Stock Exchange's only dedicated, institutional-grade onchain infrastructure company."

Chairman’s Report

for the period ended 30 June 2026

We are pleased to present KR1 plc’s Interim Report for the 6 months ended 30 June 2026.

For the six months ended 30 June 2026, KR1 plc generated £0.6 million in infrastructure income as compared with £2.9 million for corresponding half year 2025.

Further, as at 30 June 2026, the net asset value of KR1 plc was £32.1 million as compared with £49.6 million as at 31 December 2025. The net asset value per share was 18.07 pence per share as compared with 27.93 pence per share as at 31 December 2025.

In total, the Company reported a loss per share for the period of 9.86p as compared to a loss per share of 20.23p in the previous financial year and 7.96 pence per share for the corresponding half year 2025.

On behalf of the Board of Directors, I thank all Shareholders for their support.

Sincerely yours,

Rhys Davies

Managing Directors’ Report

for the period ended 30 June 2026

In H1 2026, as the London Stock Exchange’s only dedicated onchain infrastructure company, we operated against a backdrop of deeply challenging digital asset markets, which endured one of their toughest first halves in years. Bitcoin fell around 35% from about US$90,000 in early January to around US$58,500 by the end of June, while Ethereum fell even harder, down nearly 46% over the same period to around US$1,611, dragging total crypto market capitalisation down. This challenging market directly impacted our H1 performance during this period and the Company has reallocated a portion of its assets accordingly into new high growth areas, strengthening its long-term positioning. Since late summer markets have started recovering, which has been positive for most of our assets as detailed in our recent financial updates and has been reflected in developments in KR1’s share price too. In line with this there have been plenty of positive developments, which reinforce where KR1 positions itself.

Following the end of the first half of the year, one of the most significant developments became the Company's holding in Bitway ("BTW"), as detailed in the Company’s announcement on 16 April 2026, which operates as a Bitcoin-focused capital gateway, effectively bridging onchain liquidity with traditional markets. The Company’s initial seed investment of US$300,000 in Bitway (previously Side Protocol, as announced on 26 July 2023), gives the Company a holding of 100,000,000 BTW, which are currently still subject to an initial lock-up of 12 months (currently expected up until March 2027) and, thereafter, a linear unlock over a further 24 months.

While Bitway’s BTW token is trading in excess of US$1.00 on various trading venues as of late, which would imply a position in excess of US$100 million, the Company applied an adjustment of 80% to discount the fair value of Bitway as from July 2026 (until further notice, as detailed in the Company’s financial update released on 28 August 2026). This adjustment reflects the Company's assessment of the realisable fair value of the holding relative to observed market price, taking into consideration, inter alia, the prevailing market conditions and secondary market structure at this time (for instance, the lack of listing of Bitway’s BTW token on trading venues such as Coinbase, Kraken and major OTC desks). We will continue to evaluate market dynamics in relation to this holding and assess appropriate valuation and realisation options on an ongoing basis. It is noted that the adjustment applied is not an indication of the Company's view about the long-term potential of the project and its technology roadmap.

Other positive developments are that digital assets have finally found product market fit with tokenisation of many real world and financial assets, mainly on Ethereum, and the agentic AI revolution, which has yet to hit but is likely to be of a magnitude more impactful on onchain transactions than anything that we have seen before, blockchains were built for machines after all. KR1 owns and operates productive digital assets across these networks powering the convergence of AI and crypto, and earns infrastructure income as a result. Our focus is the onchain infrastructure layer underpinning the ecosystem, which includes core network infrastructure such as Ethereum, where Q1 transactions crossed 200 million for the first time. Furthermore, ETH passed 37 million (over 30% of supply staked), and stablecoin value locked on the network topped US$158 billion, underlining durable, utility driven demand even as yields compressed.

Alongside this, a new category emerged at the intersection of AI and blockchain: namely AI agents and decentralised compute. As AI workloads scale, demand grows for verifiable, permissionless compute and for the coordination rails autonomous agents need to transact, pay, and interact onchain. This is a natural extension of the same thesis that drew us to base layer chains, proof-of-stake and naturally expands the scope of our Technology Infrastructure (“TI”) strategy and operations. BlackRock’s 22 September 2026 paper, The Machine-Native Economy argues that agentic AI will turn software into a structural buyer of blockchain rails, a path from around 200 million daily transactions today toward multiple billions per day by 2030.

In H1 2026 the wider digital asset innovation sector remained subdued, with fresh capital increasingly concentrated on the convergence of AI and blockchains. Many projects without a credible AI angle have paused, pivoted or wound down as capital shifted towards AI related opportunities. Against this backdrop, AI and crypto convergence has emerged as one of the defining themes of 2026, and our early stage investment activity has remained focused on this area.

We are already deploying capital and generating infrastructure income across this new AI stack through investments in Venice.ai, Diem and Bittensor, and several others to be announced. Established KR1 portfolio projects including Celestia and RedStone are also increasingly moving into AI, reinforcing our view that this convergence is becoming a structural theme.

As AI agents transact and coordinate at scale, value shifts to the financial rails beneath them. Ethereum operates as a machine driven settlement layer with deep liquidity, the largest developer ecosystem, and native support for programmable money and smart contracts, commanding the lion's share of stablecoin volume, and remains our core holding. Our thesis is that within three years most blockchain traffic will come from AI agents, served by decentralised clusters of computers training and serving AI at scale.

We are also embracing AI across our own operations, with AI agents augmenting the team across every workflow to help us move faster, see further, and help on investment research. Separately, to enhance shareholder communication, we have also been developing a new website, investment thesis and investor deck, which we look forward to sharing in due course, to give investors a clear view of our strategic direction and make a compelling case for KR1 shares as a differentiated way to gain exposure to the rapidly evolving onchain economy.

With onchain finance maturing into recognised market infrastructure, Financial Infrastructure has become another core focus for the Company. Stablecoins and tokenisation are now established themes in global capital markets. Tokenised real world assets reached US$33 billion and prediction markets grew to US$1.8 billion in open interest. Traditional and onchain rails are converging faster than price action suggests.

Against the headwinds of the market, real positives stand out, particularly within our Financial Infrastructure (“FI”) strategy, where pilot projects launched earlier this year have tested onchain finance protocols, improved our accounting and custody systems, and return modelling. An early winner has been Convex Finance, an onchain finance protocol around Curve Finance’s stablecoin ecosystem offering governance voting power over both platforms when tokens are locked. We’re currently seeing an annualised return of just above 10% on our deployed capital, and are exploring how to expand this a core pillar of the wider strategy.

Another FI focus has been Yield Basis operations with parts of our Ethereum position. Yield Basis is a onchain finance protocol that users leverage liquidity via Curve's crvUSD to let Ethereum holders earn yield from asset price volatility without facing impermanent loss on contributed funds. We’re testing both Ethereum and Bitcoin positions and the results are also encouraging, though returns are far more dependent on market volatility.

We continue to research and pilot opportunities within onchain finance and are also looking further afield. KR1 remains focused on decentralised infrastructure, but stablecoin and real world asset infrastructure, often hybrid in design, is increasingly hard to ignore, and we are assessing seed and secondary market opportunities there too.

In the wider portfolio we reduced our legacy Polkadot and Cosmos positions as part of more active capital allocation, rotating funds out of underperforming legacy Layer 1 assets into onchain AI infrastructure. This includes a high-conviction strategic investment into Venice.ai, where we acquired Venice’s VVV token, which has performed exceptionally well. We launched staking operations for Venice alongside some activities in the AI compute and inference provisioning field enabled by Venice’s DIEM ecosystem, both reinforcing our conviction in the onchain AI sector.

We enter H2 2026 with real optimism. Investor attention is returning to digital assets, and our AI and crypto convergence positions leave us well placed ahead of a trend still in its early innings. We thank our shareholders for their support and patience through challenging times, and look forward to demonstrating why KR1 is the most credible, institutional grade dedicated onchain infrastructure company on the London markets.

George McDonaughKeld van Schreven
Managing Director & Co-FounderManaging Director & Co-Founder

Statement of Comprehensive Income

for the half year ended 30 June 2026

	Note	6 months to 30 June 2026 £	6 months to 30 June 2025 £	12 months to 31 December 2025 £
Continuing operations
Income
Income from digital assets	8	600,918	2,932,958	4,872,546
Direct costs	9	(118,004)	(208,003)	(305,127)
Gross profit		482,914	2,724,955	4,567,419
Administrative expenses	9	(1,309,889)	(2,327,170)	(5,599,139)
(Loss) on disposal of intangible assets held at fair value	8	(31,029,755)	(333,901)	(8,479,992)
(Loss) on disposal of intangible assets held at cost	8	-	-	(325,709)
Gain on disposal of financial assets	8	-	171,904	171,904
Movement in fair value of intangible assets at fair value through profit and loss	12	16,372,864	(11,698,773)	(22,610,544)
Movement in fair value of financial assets at fair value through profit and loss	6	(2,054,528)	(2,462,667)	(4,076,470)
Movement in fair value of intangible assets held under the cost model	12	25,221	(163,842)	374,310
Share option surrender	15	-	-	149,852
Operating (loss)		(17,513,173)	(14,089,494)	(35,828,369)
Taxation on loss	10	-	-	-
(Loss) after taxation		(17,513,173)	(14,089,494)	(35,828,369)
Other comprehensive income:
Movement in fair value of intangible assets	12	-	(53,822,045)	(53,822,045)
Total other comprehensive income for the year		-	(53,822,045)	(53,822,045)
Total comprehensive income attributable to the equity holders of the Company		(17,513,173)	(67,911,539)	(89,650,414)
Earnings per share attributable to the equity owners of the company (pence):
Basic earnings per share	11	(9.86)	(7.96)	(20.23)
Diluted earnings per share	11	(9.86)	(7.95)	(20.23)

The Company has elected as an accounting policy to present one single statement, statement of profit or loss and other comprehensive income, rather than to present two separate statements, a statement of profit or loss and a statement of comprehensive income.

Statement of Financial Position

for the half year ended 30 June 2026

	Note	At 30 June 2026 £	At 30 June 2025 £	At 31 December 2025 £
Assets
Non-current assets
Intangible assets	12	141,700	-	272,889
Intangible assets receivable	12,13	3,689,166	4,911,109	2,384,806
Total non-current assets		3,830,866	4,911,109	2,657,695
Current assets
Intangible assets	12	22,062,334	56,540,128	37,513,886
Intangible assets receivable	12,13	1,948,817	1,235,363	2,382,209
Financial assets at fair value through profit and loss	6	4,101,152	8,943,300	6,155,680
Cash and cash equivalents		441,833	353,483	1,306,081
Trade and other receivables	13	110,140	120,152	201,626
Total current assets		28,664,276	67,192,426	47,559,482
Total assets		32,495,142	72,103,535	50,217,177
Equity and liabilities
Current liabilities
Trade and other payables	14	405,138	612,733	614,000
Total current liabilities		405,138	612,733	614,000
Net assets		32,090,004	71,490,802	49,603,177
Equity
Share capital	15	338,107	337,005	338,107
Share premium	16	36,602,619	36,602,619	36,602,619
Capital redemption reserve	16	471,751	471,751	471,751
Revaluation reserve	16	-	-	-
Option reserve	16	-	149,852	-
Treasury shares	16	(298,044)	(298,044)	(298,044)
Retained reserves	16	(5,024,429)	34,227,619	12,488,744
Total equity		32,090,004	71,490,802	49,603,177
Total equity and liabilities		32,495,142	72,103,535	50,217,177

Statement of Changes in Equity

for the half year ended 30 June 2026

	Share Capital £	Treasury shares £	Capital redemption reserve £	Share premium £	Revaluation reserve £	Option reserve £	Retained Reserves £	Total £
Balance at 1 January 2026	338,107	(298,044)	471,751	36,602,619	-	-	12,488,744	49,603,177
(Loss) for the financial period	-	-	-	-	-	-	(17,513,173)	(17,513,173)
Total other comprehensive income for the period	-	-	-	-	-	-	-	-
Total comprehensive income for the period	-	-	-	-	-	-	(17,513,173)	(17,513,173)
Transactions with owners, recorded directly in equity	-	-	-	-	-	-	-	-
Balance at 30 June 2026	338,107	(298,044)	471,751	36,602,619	-	-	(5,024,429)	32,090,004

	Share Capital £	Treasury shares £	Capital redemption reserve £	Share premium £	Revaluation reserve £	Option reserve £	Retained Reserves £	Total £
Balance at 1 January 2025	337,005	(298,044)	471,751	36,602,619	53,822,045	149,852	48,317,113	139,402,341
(Loss) for the financial period	-	-	-	-	-	-	(14,089,494)	(14,089,494)
Total other comprehensive income for the period	-	-	-	-	(53,822,045)	-	-	(53,822,045)
Total comprehensive income for the period	-	-	-	-	(53,822,045)	-	-	(53,822,045)
Transactions with owners, recorded directly in equity	-	-	-	-	-	-	-	-
Balance at 30 June 2025	337,005	(298,044)	471,751	36,602,619	-	149,852	34,227,619	71,490,802

	Share capital £	Treasury shares £	Capital redemption reserve £	Share premium £	Revaluation reserve £	Option reserve £	Retained reserves £	Total £
Balance at 1 January 2025	337,005	(298,044)	471,751	36,602,619	53,822,045	149,852	48,317,113	139,402,341
(Loss) for the financial year	-	-	-	-	-	-	(35,828,369)	(35,828,369)
Total other comprehensive income for the year	-	-	-	-	(53,822,045)	-	-	(53,822,045)
Total comprehensive income for the year	-	-	-	-	(53,822,045)	-	(35,828,369)	(89,650,414)
Issue of ordinary shares at par	1,102	-	-	-	-	-	-	1,102
Surrender of share options	-	-	-	-	-	(149,852)	-	(149,852)
Transactions with owners, recorded directly in equity	1,102	-			-	(149,852)	-	(148,750)
Balance at 31 December 2025	338,107	(298,044)	471,751	36,602,619	-	-	12,488,744	49,603,177

Statement of Cash Flows

for the half year ended 30 June 2026

	6 months to 30 June 2026 £	6 months to 30 June 2025 £	12 months to 31 December 2025 £
Cash flows from operating activities
(Loss) after tax for the financial period	(17,513,173)	(14,089,494)	(35,828,369)
Other Comprehensive Income	-	(53,822,045)	(53,822,045)
Adjustments for:
Movement in fair value of intangible assets	(16,372,864)	65,520,818	76,432,588
Loss on disposal of intangible assets held at fair value	31,029,755	333,901	8,479,992
Loss on disposal of intangible assets (early-stage)	-	-	325,709
(Gain) on disposal of financial assets	-	(171,904)	(171,904)
Movement in fair value of digital assets held under the cost model	(25,221)	163,842	(374,310)
Non-cash income from digital assets	(595,284)	(2,932,958)	(4,872,546)
Other non-cash transactions	6,416	-	3,711
Share Option surrender	-	-	(149,852)
Forex Exchange (gain)/loss	(13,369)	56,063	104,539
Movement in fair value of financial assets at fair value through profit and loss	2,054,528	2,462,667	4,076,470
Decrease in debtors	91,486	95,505	14,031
(Decrease) in creditors	(208,862)	(374,889)	(373,622)
Net cash (outflow) from operating activities	(1,546,588)	(2,758,494)	(6,155,608)
Cash flows from investing activities
Sales of investments	10,003,946	2,231,751	6,629,109
Purchases of investments	(9,334,975)	(240,002)	(240,274)
Net cash inflow from investing activities	668,971	1,991,749	6,388,835
Cash flows from financing activities
Share issue at par	-	-	1,102
Net cash inflow from financing activities	-	-	1,102
Net (decrease)/increase in cash	(877,617)	(766,745)	234,329
Cash at the beginning of the period	1,306,081	1,176,291	1,176,291
Effect of exchange fluctuations on cash	13,369	(56,063)	(104,539)
Cash at the end of the period	441,833	353,483	1,306,081
Represented by:
Cash at bank	398,923	322,782	448,165
Cash held on trading platforms	42,910	30,701	857,916
	441,833	353,483	1,306,081

Non-cash transactions consist of expenses paid using digital assets. The Company also performs some sales and purchases of digital assets against Stablecoins (also classified as digital assets).

Notes to the Interim Financial Statements

for the half year ended 30 June 2026

1. The Company

KR1 plc (“the Company”) is incorporated in the Isle of Man. The registered office is First Names House, Victoria Road, Douglas, Isle of Man, IM2 4DF. The principal activity of the Company is that of an onchain infrastructure company focused on the infrastructure layer of decentralised networks and the generation of income from digital assets.

On 25 November 2025, the Company completed the migration of its listing to the London Stock Exchange through the admission of its entire share capital to trading on the Main Market of the London Stock Exchange and the simultaneous cessation of trading on the Apex segment of London's AQSE Growth Market.

1. Basis of preparation

The information relates to the 6-month period from 1 January to 30 June 2026 “HY 2026” and is unaudited with comparatives for the 6-month period from 1 January to 30 June 2025 “HY 2025” (unaudited) and for the year ended 31 December 2025 “FY 2025” (audited). These condensed interim financial statements are unaudited and have not been reviewed by the Company’s auditor in accordance with ISRE 2410

The Interim Financial Statements have been prepared in accordance with IAS 34 “Interim Financial Reporting” as adopted in the UK and the Disclosure Guidance and Transparency Rules (DTR 4.2) of the UK Financial Conduct Authority applicable to half‑yearly financial reports. In accordance with IAS 34 “Interim Financial Reporting”, these condensed interim financial statements do not include all the disclosures required for full annual financial statements and should therefore be read in conjunction with the Annual Financial Statements for the year ended 31 December 2025.Statutory Financial Statements for the year ended 31 December 2025 were approved by the Board of Directors on 27 April 2026. The report of the auditors on those Financial Statements was unqualified with no material uncertainty related to going concern.

These condensed interim financial statements are unaudited and have not been reviewed by the Company’s auditor in accordance with ISRE 2410

The financial statements are presented in Pounds Sterling (“GBP”). The Company’s functional currency is also GBP and has been assessed by the Directors based on consideration of the currency and economic factors that mainly influence the Company’s digital assets, investments, operating costs, financing and related transactions. Changes to these factors may have an impact on the judgement applied in the determination of the Company’s functional currency.

Assets and liabilities in foreign currencies are translated into sterling at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Foreign exchange differences arising on translation are recognised in profit or loss.

The preparation of financial statements in conformity with UK-adopted International Accounting Standards requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in Note 3.

1. Going concern

The preparation of interim financial statements requires an assessment on the validity of the going concern assumption.

The Directors have assessed the Company’s financial position, cash resources and expected cash flows for a period of at least twelve months from the date of approval of this Interim Financial Report. In forming this assessment, the Board considered current income levels, and the potential impact of broader macroeconomic and geopolitical conditions.

Based on this review, the Directors have not identified any material uncertainties that may cast significant doubt on the Company’s ability to continue as a going concern. Accordingly, the Interim Financial Statements have been prepared on a going concern basis.

1. Changes in accounting policies
   1. New standards, interpretations and amendments adopted from 1 January 2026

The following new standards have come into effect this year however they have no impact on the Company:

Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments

Amendment to IFRS 9: Contractual Cash Flow Characteristics (SPPI assessment)

Amendment to IFRS 9: Non‑recourse Features and Contractually Linked Instruments

Amendment to IFRS 9: Derecognition of Financial Liabilities Settled via Electronic Transfer

Amendments to IFRS 7: Additional Disclosures for Equity Instruments at FVOCI

Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements (ongoing enhanced disclosures)

Amendments to IAS 12: International Tax Reform – Pillar Two (continued disclosure requirements)

1. New standards, interpretations and amendments not yet effective

There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Company has decided not to adopt early.

The following amendments are effective for the period beginning 1 January 2027:

Amendments to IFRS 18: Presentation and Disclosure in Financial Statements

Amendments to IAS 12: International Tax Reform – Pillar Two (disclosure requirements continue)

Amendments to IFRS Practice Statement 1: Management Commentary

The Company is currently assessing the impact of these new accounting standards and amendments. The Company does not believe that the amendments will have a significant impact on the Company’s financial statements in the future.

1. Other

The Company does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the company.

1. Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The most significant judgements applied in these financial statements include the valuation of financial assets and digital assets. For unlisted financial assets the Company may use internally developed models, which are usually based on valuation methods and techniques generally recognised as standard within the industry as further detailed in Note 6.4. Such models are also applied to early-stage digital asset investments (Note 12.2). Digital assets held at fair value are also assessed by the Board with regards market liquidity, and in the case the liquidity is considered insufficient in proportion to the Company’s holding the fair value may be adjusted to nil.

The Board regularly monitors the values of the digital assets and any market forecasts. During the period, the Company entered into digital asset transactions, which were assessed for fair value in line with the requirements of IAS 38, Intangible Assets, adopting the revaluation model. Revaluations were made with such regularity that as at the end of the reporting period the carrying amount of the asset does not differ materially from its fair value. All revaluations were made with reference to level 1 information, as disclosed in Note 12.1.

Revaluations made with reference to level 3 include unlisted equity investments as disclosed in Note 6.4 and early-stage investments for future tokens as disclosed in Note 12.2.

1. Significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below.

1. Measurement convention

The financial statements have been prepared under the historical cost convention except for the following items:

listed financial assets which are carried at fair value; and

intangible assets traded in an active market which are carried at fair value.

A number of assets and liabilities included in the Company’s financial statements require measurement at, and/or disclosure of, fair value.

The fair value measurement of the Company’s financial and non-financial assets and liabilities utilises market observable inputs and data as far as possible. Inputs used in determining fair value measurements are categorised into different levels based on how observable the inputs used in the valuation technique utilised are (the ‘fair value hierarchy’):

Level 1: Quoted prices in active markets for identical items (unadjusted)

Level 2: Observable direct or indirect inputs other than Level 1 inputs

Level 3: Unobservable inputs (i.e. not derived from market data).

The classification of an item into the above levels is based on the lowest level of the inputs used that has a significant effect on the fair value measurement of the item. Transfers of items between levels are recognised in the period they occur.

1. Income

Other Income represents amounts received from the disposal of intangible assets, the disposal of financial assets.

Gains and losses arising from changes in the fair value of the financial assets at fair value through profit or loss and from changes in fair value of intangible assets are presented in the statement of comprehensive income within movement in fair value of financial assets at fair value through profit or loss and movement in fair value of intangible assets respectively in the period in which they arise.

Income from the disposal of digital assets is recognised on the date of the sale and income from staking, parachains, distributions and bonus tokens are recognised on an accruals basis as earned.

1. Intangible assets
   1. Digital assets

The Company holds digital assets which do not qualify for recognition as cash and cash equivalents or financial assets. The Company does not meet the definition of a broker-trader under IAS 2 “Inventories” as the assets are not principally acquired for the purpose of selling in the near future and brokerage in nature. The assets are held with a view to participate in proof-of-stake networks and with a view to medium to long term capital growth.

Considering this, the digital assets have been classified as Intangible Assets in accordance with IAS 38 and the revaluation model has been applied as there is an active market for the digital assets. The assets are identifiable; separable and future economic benefits are expected. Intangible assets held are measured initially at cost and are subsequently carried at a revalued amount based on fair value.

All assets in this class are accounted for using the same model unless there is no active market for those assets. A class of intangible assets is a grouping of assets of a similar nature and use in an entity’s operations. The items within a class of intangible assets are revalued simultaneously as is required, and to avoid selective revaluation of assets and the reporting of amounts in the Financial Statements representing a mixture of costs and values as at different dates.

Revaluation increases in the carrying amount are recognised in other comprehensive income and accumulated in the revaluation surplus within equity. Revaluation decreases which offset previous increases are charged in other comprehensive income and debited to the revaluation surplus directly in equity. All other decreases are charged to the income statement.

The digital assets have indefinite useful lives and are reviewed at each reporting period to determine whether events and circumstances continue to support an indefinite useful life assessment for that asset.

1. Early-stage investments for future tokens

Projects and entities looking to launch a decentralised blockchain network or product (including proof-of-stake networks) may make use of agreements such as a ‘Simple Agreement for Future Tokens’ ("SAFT") or a ‘Simple Agreement for Future Equity (“SAFE”) in combination with a Token Warrant (warrant to purchase digital assets).

Whereby an investment takes the form of a SAFE and Token Warrant the equity element (SAFE) is classified as a financial asset in accordance with Note 6 whereas the Token Warrant, to be exercised at a negligible value, is the element classified as an early-stage investment for future tokens.Once the digital assets are “issued” the corresponding SAFE is evaluated for full impairment if no further economic benefits are expected.

The early-stage investments for future tokens in the Company consist of SAFTs and Token Warrants, whereby the investor provides upfront funding to a project in exchange for an entitlement to receive a variable number of digital assets or tokens in the future upon a successful launch of the respective project. Details in agreements can vary, impacting the determination of the accounting treatment including (but not limited to) the characteristics and features that the digital asset or tokens will have, and the rights to which the future holders will be entitled through such agreements for future tokens. These investments are accounted for at cost less impairment.

Considering this it has been determined that the investments do not meet the definition of a financial asset as they do not give the holder the right to cash or another financial asset. The investments do meet the definition of an identifiable non-monetary asset without physical substance and hence an intangible asset under IAS 38. The investments are assets that are controlled by the Company as a result of past events and from which future economic benefits are expected.

Unlike the digital assets held, there is no active market for these agreements and hence these are held under the cost model and subsequent to initial recognition will be held at cost less impairment. No amortisation will be charged to the assets as the investment is entered into with the outcome expected that digital assets will be provided at the end of the agreement following a projects’ launch.

1. Financial instruments
   1. Financial assets

Financial assets are recognised in the Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument. The Company initially recognises loans and receivables and deposits on the date that they are originated. All other financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument.

The Company derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred.

The classification of financial assets at initial recognition that are debt instruments depends on the financial asset’s contractual cash flow characteristics and the Company’s business model for managing them. The Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

Financial assets and liabilities are offset, and the net amount presented in the statement of financial position when, and only when, the Company has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Company has the following non-derivative financial assets: financial assets at fair value through profit or loss and loans and receivables.

1. Financial assets at fair value through profit or loss

A financial asset is classified at fair value through profit or loss if it is classified as held for trading or is designated as such upon initial recognition. Financial assets are designated at fair value through profit or loss if the Company manages such investments and makes purchase and sale decisions based on their market value. Upon initial recognition attributable transaction costs are recognised in profit or loss as incurred. Financial assets at fair value through profit or loss are measured at fair value, and changes therein are recognised in profit or loss.

1. Receivables

Receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition receivables are measured at amortised cost using the effective interest method, less any impairment losses. Receivables comprise trade and other receivables.

Digital assets which are legally owned by the Company originating from early-stage investments for future tokens may be distributed to Company owned accounts or blockchain wallets under the Company’s control by the investee team over time in accordance with the terms of contractual agreements between the Company and the investees. The Company recognises these owned but yet-to-be-received digital assets as Intangible assets receivable.

1. Cash and cash equivalents

Cash and cash equivalents includes cash at bank and cash held on trading platforms and comprises cash balances and call deposits with original maturities of three months or less.

1. Equity instruments

The Company subsequently measures all equity investments at fair value. Where the Company’s management has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.

1. Financial liabilities

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables. All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The Company’s financial liabilities include trade and other payables.

1. Trade and other payables

After initial recognition, trade and other payables are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in the statement of profit or loss and other comprehensive income when the liabilities are derecognised, as well as through the EIR amortisation process.

A financial liability is derecognised when the associated obligation is discharged or cancelled or expires.

1. Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense. Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the reporting date. Deferred tax balances are not discounted. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

1. Treasury shares

The costs of repurchasing ordinary shares including transaction costs are recognised in the Statement of Changes in Equity and accounted for on a trade date basis. The Company must not exercise any right in respect of the treasury shares (e.g. attending or voting at meetings) and no dividend or distribution can be paid to them (including any distribution of assets to members on a liquidation) and therefore treasury shares are excluded from NAV and EPS calculations.

1. Capital redemption reserve

The capital redemption reserve is created further to the redemption of Class C and Class D shares below par. The difference between nominal value and the redemption amount is recognised within equity as a capital redemption reserve which is a distributable reserve.

1. Segmental information

The Board has determined that the Company is operating in a single operating segment being that of decentralised technologies and digital assets. As at 30 June 2026 98.03% (FY2025: 97.00%) of the assets of the Company consist of digital assets and holdings in the decentralised technologies industry.

Further, throughout the financial period 2026, 100% (2025: 100%) of the Company’s income is from digital assets.

Due to the nature of decentralised networks and digital assets, it is not possible to provide a geographical split of the Company’s income stream and its assets as digital assets are traded worldwide and are not specific to a geographical area.

1. Financial instruments and risk management
   1. Principal financial instruments

The Company is exposed, in varying degrees, to a variety of financial related risks including liquidity risk, credit risk and market risk. These risks arise through directly held investments and activities of the Company and are actively managed by the board of Directors on an ongoing basis.

The principal financial instruments used by the company from which financial instrument risk arises is as follows:

Cash and cash equivalents

Investments in listed and unlisted equity securities; and

Trade and other payables

1. Financial instruments by category

Financial assets	30 June 2026 £	30 June 2025 £	31 December 2025 £
Cash and cash equivalents	441,833	353,483	1,306,081
Equity investments	4,011,574	8,854,033	6,064,948
Debt securities	89,578	89,267	90,732
Total	4,542,985	9,296,783	7,461,761

Financial liabilities	30 June 2026 £	30 June 2025 £	31 December 2025 £
Trade and other payables	405,138	612,733	614,000
Total	405,138	612,733	614,000

1. Financial instruments not measured at fair value

Financial instruments not measured at fair value include cash and cash equivalents, trade and other payables. Due to their short-term nature, the carrying value of cash and cash equivalents and trade and other payables approximates their fair value.

1. Financial instruments measured at fair value

Financial instruments held by the Company carried at fair value include private equity investments.

The table below analyses the Company’s financial instruments carried at fair value by valuation method. The different levels have been defined as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability either directly (that is, as prices) or indirectly (that is, derived from prices); and

Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).

The categorisation of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to the Company’s perceived risk of that instrument. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgement by the Company.

A market is regarded as active if quoted prices are readily and regularly available from an exchange. The quoted market price used for financial assets held by the Company is the current bid price. The fair value of financial assets and liabilities traded in active markets (such as publicly traded securities) are based on quoted market prices at the close of trading on the period end date. The Company holds listed equity investments with a value of £5,768 at the period-end which are considered as a Level 1 in the fair value hierarchy. For the period the Company records a decrease in the fair value of financial assets of £2,054,528 of which £9,823 is attributable to Level 1 and £2,044,705 attributable to Level 3 financial assets.

For instruments for which there is no active market, the Company may use internally developed models, which are usually based on valuation methods and techniques generally recognised as standard within the industry. Valuation models are used primarily to value unlisted equity and options, for which markets were or have been inactive during the financial period. Some of the inputs to these models may not be market observable and are therefore estimated based on assumptions. The output of a model is always an estimate or approximation of a value that cannot be determined with certainty, and valuation techniques employed may not fully reflect all factors relevant to the positions the Company holds. Valuations are therefore adjusted, where appropriate, to allow for additional factors including model risk, liquidity risk and counterparty risk.

The following tables present the Company’s financial assets at 30 June 2026. The classification of a financial instrument within Level 3 is based upon the significance of the unobservable inputs to the overall fair value measurement.

Financial assets at fair value through profit and loss	Level 1 £	Level 2 £	Level 3 £
Listed equity investments	5,768	-	-
Unlisted equity investments	-	-	4,005,806
Debt securities	-	-	89,578
Balance at 30 June 2026	5,768	-	4,095,384

The table below shows the valuation techniques and key assumptions applied to the underlying unlisted investments.

Valuation technique	Significant unobservable inputs	Unlisted investment £
Level 3:
Unlisted equity investments	Cost less impairment	4,005,806
Debt instrument	Cost less impairment	89,578
Balance at 30 June 2026		4,095,384

There were no transfers between levels in the period.

The reconciliation of the opening and closing fair value balance of level 3 financial instruments is provided below:

Level 3 reconciliation	HY 2026 £	FY2025 £
Level 3:
Balance at 1 January	6,140,089	12,321,574
Acquisition of investments	-	-
Disposal of investments	-	(931,980)
Reclassification of intangible assets	-	(1,173,816)
Movement in net unrealised gain/(loss)	(2,044,705)	(4,075,689)
Balance at period end	4,095,384	6,140,089

During the period the total movement in fair value of financial assets at fair value through profit and loss was loss £2,054,528 (HY 2025: loss £2,462,667) which includes a total movement in fair value of Level 1 financial assets at fair value through profit and loss of loss £9,823 (HY 2025 loss £16,183).

1. Sensitivity analysis

If the average fair values of the unlisted equity investments at fair value through profit or loss had increased/decreased by 10% during 2026 with all other variables held constant, the Company’s profit for the year would have moved by +/- £400,581 (HY 2025: +/- £885,384).

If the average fair values of the debt instruments at fair value through profit or loss had increased/decreased by 10% during 2026 with all other variables held constant, the Company’s profit for the year would have moved by +/- £8,958 (HY 2025: +/- £8,927).

1. Financial Risk Management

The Company's financial risk management objective is to identify, monitor, and minimise potential adverse effects on its financial performance arising from its exposure to financial instruments. The Company is primarily exposed to market risk (including foreign currency risk and other price risk related to financial instruments), credit risk, liquidity risk, and capital risk.

While the quantitative disclosures, maturity profiles, and sensitivity analyses relating to these specific financial instruments are detailed in the following sections, a comprehensive overview of principal risks and uncertainties, including operational, industry, regulatory, technological, and broader risks impacting the Company’s assets and operations set out within the Principal Risks and Uncertainties section, which is incorporated into the Notes to the Interim Financial Statements by reference.

1. Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

1. Foreign currency risk

The Company invests in financial instruments and enters into transactions that are denominated in currencies other than its functional currency. Consequently, the Company is exposed to risk that the exchange rate of its currency relative to other foreign currencies may change in a manner that has an adverse effect on the fair value of future cash flows of that portion of the Companies financial assets or liabilities denominated in currencies other than British Pounds.

The Company’s total net exposure to fluctuations in foreign currency exchange rate at the statement of financial position date is as follows:

If the USD exchange rate had increased/decreased by 10% at 30 June 2026 with all other variables held constant, the Company’s profit for the period would have increased/decreased by £35,875.

If the EUR exchange rate had increased/decreased by 10% at 30 June 2026 with all other variables held constant, the Company’s profit for the period would have increased/decreased by £3,018.

If the CHF exchange rate had increased/decreased by 10% at 30 June 2026 with all other variables held constant, the Company’s profit for the period would have increased/decreased by £nil.

1. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to interest rate risk is minimal, as it holds no long-term interest-bearing debt. Its sole exposure to interest rate fluctuations relates to interest earned on fiat cash balances maintained for standard working capital purposes. Consequently, the impact of market interest rate movements on the Company's financial statements is considered negligible, and no quantitative sensitivity analysis is required.

1. Other price risk and concentration of risks

Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate as a result of changes in market prices (other than those arising from foreign currency or interest rate). For the Company, this risk primarily arises from its strategic investments in unquoted equity instruments and other financial instruments within the digital asset ecosystem. The Board manages this exposure through rigorous pre-investment due diligence, continuous monitoring of investee performance, and maintaining a diversified portfolio.

The Company’s primary activities and holdings are concentrated in the digital assets and decentralised technologies sector. Price volatility risk relating specifically to the Company's holdings of intangible digital assets, including sensitivity analysis, is evaluated separately within Note 12 Intangible Assets.

1. Credit risk

Credit risk is the risk that the Company is exposed to financial loss if a counterparty fails to meet its contractual obligations, such as through the Company’s cash and cash equivalents, at bank and on trading platforms. The Directors continually review credit ratings (when available) of counterparty financial institutions on a regular basis. At the reporting date the financial assets exposed to credit risk amounted to the following:

	30 June 2026 £	31 December 2025 £
Cash at bank	398,923	448,165
Cash held on trading platforms	42,910	857,916
Total	441,833	1,306,081

Cash balances are placed with a creditworthy financial institution. Standard Bank Group Limited is used for the majority of the Company’s operational transactions and is rated, by Moody’s, Ba2 with a stable outlook while Rothschild is not rated.

1. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities. The Board of Directors closely monitors the Company’s cash and cash equivalent balances and other assets of the Company on a regular basis and assets are sold when there is a requirement to meet liabilities.

The Company analyses financial liabilities into relevant maturity groupings based on the remaining period at the date of the Statement of Financial Position to the contractual maturity dates on an undiscounted basis. There is no difference between the discounted and undiscounted values. All liabilities are deemed current at the period end (FY 2025: current; HY 2025: current)

1. Capital risk

The Company defines capital as total Shareholders’ equity. The Company’s objectives in managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for Shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the distributions paid to Shareholders or return capital to Shareholders. The Board monitors the Company’s capital structure and the return on capital to Shareholders.

1. Staff costs / Director remuneration

	HY 2026 £	HY 2025 £
Executive Director remuneration	75,000	75,000
Non-Executive Director remuneration	105,000	105,000
Consultancy fees paid to key management	37,500	37,500
Staff salaries	120,066	86,772
Social security costs	76,115	52,737
Total	413,681	357,009

The average monthly number of directors during the period was as follows:

	2026	2025
Directors	5	5

The average monthly number of employees during the period was as follows:

	2026	2025
Employees	3	2

The Company operates a Performance Incentive Scheme whereby Reflexivity Research Limited is entitled to receive a performance fee equal to 20% (HY25: 20%) of the portfolio appreciation for the relevant period.

The portfolio appreciation is calculated with reference to the Company's audited financial statements as:

Audited Net Assets (as at the end of the relevant period prior to any performance incentive scheme accrual)

Less:

the previous years Audited Net Assets, where a performance fee was due (31 December 2021)

any capital injections in the period between the above two Audit Net Asset positions

Add:

any accrued but unpaid performance fee in respect of the calculation period for which the Adjusted Net Asset Value calculation is being performed.

Any performance fee awarded to Reflexivity Research Limited under this arrangement will be satisfied entirely by the issue of ordinary shares of 0.19p each in the Company with the issue price determined by the net asset value per Share at the end of a relevant period.

At the period-end an accrual for the performance fee relevant to the period has been calculated at £nil (2025: £nil).

1. Income by Type

Income, (see Note 4.2), is generated from digital assets, including through staking activities and rewards, parachain rewards, distributions and bonus tokens. Additional income is derived from the disposal of intangible assets and bank interest.

A breakdown of income stream types is detailed below:

	HY 2026 £	HY 2025 £
Income from digital assets
Technology Infrastructure operations	473,185	2,891,264
Financial Infrastructure operations	42,784	-
Distributions	113,633	41,694
Open positions	(28,684)	-
Total income from digital assets	600,918	2,932,958

During the period the Company has expanded and renamed its income strategies (see Note 4.2). Income defined as staking income in the comparative period has been re defined as Technology Infrastructure Income.

	HY 2026 £	HY 2025 £
Other income/(loss)
Movement in fair value of intangible assets at fair value through profit and loss	16,372,864	(11,698,773)
(Loss) on disposal of intangible assets held at fair value	(31,029,755)	(333,901)
Gain on disposal of financial assets	-	171,904
Total other (loss)	(14,656,891)	(11,860,770)
Total (loss)	(14,055,973)	(8,927,812)

Gains and losses arising from changes in the fair value of the financial assets at fair value through profit or loss and from changes in fair value of intangible assets are presented in the statement of comprehensive income within movement in fair value of financial assets at fair value through profit or loss and movement in fair value of intangible assets respectively in the period in which they arise.

1. Expenses by Type

	HY 2026 £	HY 2025 £
Direct costs
Bank charges and trading commissions	12,917	9,784
Custody fees	57,803	137,785
Legal and professional fees	47,284	60,434
Total direct costs	118,004	208,003

	HY 2026 £	HY 2025 £
Administrative expenses
Administration expenses	120,042	107,997
Advisory fees	58,609	21,818
Consultancy fees	346,630	899,707
Foreign exchange (gains)/losses	(13,369)	56,063
Insurance fees	64,466	61,094
Legal and professional fees	152,255	185,803
Listing migration costs	-	482,811
Promotional fees	119,754	109,801
Regulatory fees	14,069	-
Salary, remuneration and other staff costs	413,681	357,009
Subscriptions	9,026	19,574
Travel and subsistence	12,986	25,493
Other expenses	11,740	-
Total administrative expenses	1,309,889	2,327,170

1. Taxation on profit

The company is subject to tax in the Isle of Man at a rate of 0% (2025: 0%).

1. Earnings per share

The basic earnings per share is calculated by dividing the profit after tax of the Company for the period attributable to equity shareholders by the weighted average number of shares in issue.

The diluted earnings per share is calculated by dividing the profit after tax of the Company for the period attributable to equity shareholders by the weighted average number of shares in issue plus the number of potential ordinary shares (share options as further described in Note 16).

Loss after tax of the Company for the period: £17,513,173 (HY2025: £14,089,494)

Weighted average number of Ordinary 0.19p Shares in issue: 177,586,520 (HY2025: 177,006,520).

Options exercisable at the period-end: nil (HY2025: 223,150)

Basic loss per share: 9.86p (HY2025: 7.96p).

Diluted earnings per share: loss 9.86p (HY2025: 7.95p)

1. Intangible assets
   1. Digital assets

The intangible assets consist of digital assets and early-stage investments for future tokens. As detailed in the accounting policies (Note 4.3) the digital assets are intangible assets held under the revaluation model and early-stage investments for future tokens are also held as intangible assets at cost less impairment and amortisation.

	30 June 2026 £	30 June 2025 £	31 December 2025 £
Digital assets	27,386,087	61,011,194	41,884,528
Early-stage investments for future tokens	455,930	1,675,406	669,262
Balance	27,842,017	62,686,600	42,553,790

The following table presents a reconciliation of the Company’s Digital Assets classified as Level 1:

	30 June 2026 £	30 June 2025 £	31 December 2025 £
Balance brought forward	41,884,528	124,822,006	124,822,006
Income received in the form of digital assets	595,283	2,932,958	4,872,546
Reclassification of early-stage investments	241,651	296,660	2,649,684
Acquisition of intangible assets	10,359,759	276,915	2,655,591
Disposal of intangible assets	(42,048,471)	(2,560,986)	(16,713,661)
Disposal of financial assets for intangible assets	-	1,062,202	-
Acquisition of early stage investments with intangible assets	-	(297,641)	-
Intangible assets received from disposal of early stage investments	-	-	39,381
Payment of expenses with intangible assets	(19,527)	(102)	(8,431)
Movement in net unrealised gain/(loss)	16,372,864	(65,520,818)	(76,432,588)
Balance	27,386,087	61,011,194	41,884,528

Digital assets that are legally owned by the Company from early-stage investments for future tokens may be distributed to Company owned accounts or blockchain wallets under the Company’s control by the investee team over time in accordance with the terms of contractual agreements between the Company and the investees. The Company recognises these owned but yet-to-be-received digital assets as Intangible assets receivable (see Note 13).

Whilst, under such circumstances the Company generally forfeits its ability to sell or otherwise transfer its locked digital assets, no other entity obtains the right to direct their use and the Company is still the primary entity holding the risks and rewards of ownership. Locked digital assets may be unlocked as a full tranche or may be subject to unlock and vesting schedules.

The Company does not derecognise time locked or vesting digital assets which are classified and measured in the same manner as non-locked digital assets.

The Company classifies digital assets which are due for release no later than one year after the year end as intangible assets held as current assets. Digital assets, which are due for release more than one year after the year end are classified as intangible assets held as non-current assets.

Digital assets receivable from third parties subject to unlock and vesting schedules, or as distributions and rewards are classified as intangible assets receivable (see Note 13).

Intangible assets held at fair value	30 June 2026 £	30 June 2025 £	31 December 2025 £
Intangible assets held as current assets	22,062,334	56,540,128	37,513,886
Intangible assets held as non-current assets	141,700	-	272,889
Intangible assets receivable held as current assets	1,948,817	1,235,363	2,382,209
Intangible assets receivable held as non-current assets	3,689,166	4,911,109	2,384,806
Balance	27,842,017	62,686,600	42,553,790

The following tables present the Company’s digital assets subject to time lock at 30 June 2026

Asset	Lock type	Number of tokens	Fair value £	Release date*
AI3	Time locked	2,500,000	11,934	04/09/2029
ALTHEA	Time locked	250,444	7,446	**
AVAIL	Time locked	12,500,000	26,725	14/01/2027
BOB	Time locked	50,900,000	175,605	29/04/2027
BTW	Time locked	100,000,000	3,967,000	02/02/2029
MODE	Time locked	125,000,000	4,549	07/04/2027
RED	Time locked	21,299,188	1,444,724	06/09/2027
XAN	Time locked	25,000,000	192,888	29/01/2028
	Total		5,830,871

*Vesting schedules generally comprise of monthly linear unlocks beginning one year after the Token Generation Event. The release date of time locked digital assets stated being the last tranche and marking the end date of the unlock schedules.

** ALTHEA release date subject to Governance vote

At the period end the Company held digital assets as detailed below:

30 June 2026 Assets	Number of coins or tokens	Cost £	Fair Value £
Lido Staked ETH (stETH)	4,859	7,009,219	5,749,994
Bitway (BTW)	100,000,000	241,651	3,967,000
Nexus Mutual (NXM)	111,234	238,120	3,618,956
Staked Venice (sVVV)	260,000	2,891,752	2,396,630
Celestia (TIA)	7,029,958	7,150,502	1,884,414
Redstone (RED)	25,454,545	296,660	1,726,582
Lido (LDO)	8,000,020	60,804	1,446,946
Ethereum (ETH)	1,219	1,844,384	1,444,483
Bitcoin (BTC)	21	1,102,025	928,096
Gensyn (AI)	29,277,068	595,862	769,121
Bittensor (TAO)	4,232	746,547	644,596
Polkadot (DOT)	873,000	3,343,768	540,679
Diem (DIEM)	556	625,139	507,042
Hydration (HDX)	129,515,564	798,426	367,777
Convex Finance (CVX)	452,062	615,308	361,692
Anoma (XAN)	25,000,000	804,537	196,200
Build on Bitcoin (BOB)	50,900,000	71,318	175,605
USDC (USDC)	146,905	109,390	110,823
Other minor holdings		5,272,615	549,451
Balance at 30 June 2026		33,818,027	27,386,087

Revaluation increases in the carrying amount are recognised in other comprehensive income and accumulated in the revaluation surplus within equity. Revaluation decreases which offset previous increases are charged in other comprehensive income and debited to the revaluation surplus directly in equity. All other decreases are charged to the income statement.

1. Sensitivity analysis for digital assets

If the average fair values of the digital assets at fair value had increased/decreased by 10% during 2026 with all other variables held constant, the Company’s profit for the period would have moved by +/- £2,738,609 (2025: +/- £6,101,119).

1. Early-stage investments for future tokens

Early-stage investments for future tokens are recognised initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument.

1. Accumulated amortisation, impairment and revaluation

	HY 2026 £	FY 2025 £
Balance at 1 January	669,262	1,838,062
Acquisition of intangible assets	3,098	297,846
Disposals of intangible assets	-	(365,090)
Reclassification (Intangible assets at fair value)	(241,651)	(1,475,866)
Change in fair value of intangible assets	25,221	374,310
Balance	455,930	669,262

Due to the nature of the intangible assets an infinite useful economic life has been used for the asset. Once the early-stage investments generate tokens (i.e. the Company received the digital assets) the assets are held at revaluation. Subsequent to the issue of digital assets, the investments are held until such a time that the Company disposes of them in the market.

Upon a successful token launch (i.e. the Company received the digital assets), early-stage investments for future tokens are reclassified as digital assets.

1. Trade and other receivables

	30 June 2026 £	31 December 2025 £
Debtors	-	-
Prepayments	110,140	201,626
Accrued income	-	-
Balance	110,140	201,626

Digital assets which are legally owned by the Company from early-stage investments for future tokens may be distributed to Company owned accounts or blockchain wallets under the Company’s control by the investee team over time in accordance with the terms of contractual agreements between the Company and the investees. The Company recognises these owned but yet-to-be-received digital assets as intangible assets receivable (see Note 12).

	30 June 2026 £	31 December 2025 £
Intangible assets receivable (non-current)	3,689,166	2,384,806
Intangible assets receivable (current)	1,948,817	2,382,209
Balance	5,637,983	4,767,015

1. Current intangible assets receivable

The following tables present the Company’s digital assets receivable 30 June 2026.

1. Non-current intangible assets receivable

Asset		Number of tokens	Fair value £	Release date*
AI3		1,406,250	6,714	04/09/2029
AVAIL		3,125,000	6,681	14/01/2027
BOB		23,818,590	82,174	29/04/2027
BTW		83,333,333	3,305,833	02/02/2029
RED		4,242,424	287,764	06/09/2027
Total			3,689,166

*The release date of non-current intangible assets receivable being the end date of the vesting schedules.

1. Current intangible assets receivable

Assets	Number of tokens	Fair Value £	Release date*
AI3	1,093,750	5,220	04/09/2029
ALTHEA	250,444	7,446	**
AVAIL	9,375,000	20,044	14/01/2027
BOB	27,081,410	93,431	29/04/2027
BTW	16,666,667	661,167	02/02/2029
MODE	125,000,000	4,549	17/05/2027
RED	17,056,764	1,156,960	06/09/2027
Total		1,948,817

* The release date of current intangible assets receivable being on or before that date in accordance with the unlock or vesting schedules.

** ALTHEA release date subject to Governance vote

All other digital assets receivable are resulting from early-stage investments for future tokens and are distributable by the investee team in accordance with the terms of the respective vesting schedule.

1. Trade and other payables

	30 June 2026 £	30 June 2025 £	31 December 2025 £
Trade creditors	257,526	419,455	281,670
Accrued expenses	147,612	176,429	332,330
Bank overdraft	-	16,849	-
Balance	405,138	612,733	614,000

The carrying value of trade and other payables classified as financial liabilities measured at amortised cost approximates fair value.

1. Share capital

Allotted, issued and fully paid Number:	Class	Nominal value	30 June 2026 £	30 June 2025 £	31 December 2025 £
177,949,520** (177,949,520 at 31 December 2025 and 177,369,520 at 30 June 2025)	Ordinary	0.19p	338,107	337,005	338,107
Balance			338,107	337,005	338,107

* The Company’s ordinary shares that are held in treasury do not carry voting rights nor rights in respect to dividends in accordance with the Company's Articles of Association and are therefore disregarded in accordance with the equity share capital of the Company. As at 30 June 2026, the Company held 363,000 Treasury Shares. Therefore, the total number of voting rights for shareholders in the Company is 177,586,520.

On 31 October 2025, in connection with the publication of the Prospectus, 580,000 Ordinary Shares were issued to Rhys Davies for a nominal amount of £1,102.

On 25 January 2022 1,973,684 ordinary shares of 0.19p each in the Company were issued following the exercise of an option granted under the Company’s Share Option Scheme. The shares were exercised at a price of 0.19p a share generating £3,750 of proceeds and resulted in the nominal value of the ordinary share capital increasing by £3,750.

On 21 October 2021 1,973,684 ordinary shares of 0.19p each in the Company were issued following the exercise of an option granted under the Company’s Share Option Scheme. The shares were exercised at a price of 0.19p a share, generating £3,750 of proceeds and resulted in the nominal value of the ordinary share capital increasing by £3,750.

On 4 August 2021 1,000,000 ordinary shares of 0.19p each in the Company were issued following the exercise of an option granted under the Company’s Share Option Scheme. The shares were exercised at a price of 0.19p a share, generating £1,900 of proceeds and resulted in the nominal value of the ordinary share capital increasing by £1,900.

On 9 July 2021 1,973,684 ordinary shares of 0.19p each in the Company were issued to each of George McDonaugh and Keld Van Schreven following the exercise of an option granted under the Company’s Share Option Scheme. The shares were exercised at a price of 0.19p a share, generating £7,500 of proceeds and resulted in the nominal value of the ordinary share capital increasing by £7,500.

On 7 July 2021 767,236 ordinary shares of 0.19p each in the Company were issued to Rhys Davies following the exercise of an option granted under the Company’s Share Option Scheme. The shares were exercised at a price of 19.55p a share, generating £150,000 of proceeds and resulted in the nominal value of the ordinary share capital increasing by £1,458, with the remaining £148,537 being allocated to share premium.

On 22 February 2021 973,684 ordinary shares of 0.19p each in the Company were issued following the exercise of an option granted under the Company’s Share Option Scheme. The shares were exercised at a price of 0.19p a share generating £1,850 of proceeds and resulted in the nominal value of the ordinary share capital increasing by £1,850.

1. Other reserves

The share premium reserve is a non- distributable reserve and represents the amount subscribed for share capital in excess of nominal value.

The revaluation reserve account represents the net unrealised gains on intangible assets. This is a non-distributable reserve.

Retained reserves represents retained earnings and is a distributable reserve.

The option reserve account represents the fair value of options determined using the Black-Scholes option pricing model. This is a non-distributable reserve. In connection with the Company’s successful migration to the Main Market of the London Stock Exchange during the financial year 2025, the legacy 2017 Share Option Scheme was terminated.

On 23 October 2025, the Company adopted two new discretionary share option frameworks: the UK tax-advantaged KR1 plc 2025 Company Share Option Plan (the “CSOP Scheme”) and the KR1 plc 2025 Additional Share Option Plan (the “Additional Scheme”). No awards have been made in the financial period under review; however, it is expected that initial awards totalling 990,000 options will be granted in due course.

The capital redemption reserve is created further to the redemption of Class C and Class D shares below par. The difference between nominal value and the redemption amount is recognised within equity as a capital redemption reserve and is a distributable reserve.

The treasury share reserve is created further to the repurchasing ordinary shares including transaction costs which are recognised in Equity and accounted for on a trade date basis.

In April 2024, the Company announced a resolution, passed by poll at the Extraordinary General Meeting authorising KR1 to make market purchases of up to 14.99% of the Companies issued new ordinary share capital. The Company purchased 363,000 shares for a total consideration of £298,044, including transaction costs of £595 and held these in treasury with no voting rights.

1. Related party disclosures

Director remuneration, consultancy fees paid to key management and salaries are disclosed in Note 7. At the period end the amount owed to the Executive Directors was £nil (YE2025: £nil) whilst the amount owed to Non-Executive Directors was £nil (YE 2025: £nil) and the amount owed to key management personnel was £nil (YE2025: £nil).

At the year-end there were no outstanding options issued.

Reflexivity Research Limited receives Consultancy fees and Performance fees (if applicable – see Note 7). Both of the Company's Executive Directors and a member of key management personnel are also directors of Reflexivity Research Limited and each hold 33.33% of the shares in Reflexivity Research Limited.

Consultancy fees are calculated based on the Company’s unaudited net assets as published on a monthly basis by RNS. During the period, consultancy fees totalling £346,630 (HY2025: £899,707) were incurred from Reflexivity Research Limited. At the period end the amount owed to Reflexivity Research Limited was £222,537 (FY2025: £171,842).

1. Ultimate controlling party

There is not deemed to be an ultimate controlling party.

1. Net asset value per share

The Company has a net asset value per Equity Share of 18.07p (HY2025: 40.39p, FY2025: 27.93p).

1. Post Balance Sheet Events

On 3 August the Company received US$700,000 from Sigil PCC Limited corresponding to a partial redemption of 992.277 Participation C Shares in Zee Prime II. Following the partial redemption the Company has a remaining holding of approximately 4,807 Participation C Shares in the Zee Prime II cell of Sigil PCC Limited.

On 28 August the Company published an Infrastructure Income and Holdings update for the month ended 31 July, whereby an adjustment of 80% was applied to discount the fair value of Bitway (BTW) as of that date. No adjustment has been applied retrospectively to the current period.

The adjustment reflects the Company's assessment of the realisable fair value of the holding relative to observed market price, taking into consideration, inter alia, the prevailing market conditions and secondary market structure at that time and until further notice. The Company's Management Team, Audit and Risk Committee and Board of Directors will continue to evaluate market dynamics in relation to this holding and assess appropriate valuation and realisation options on an ongoing basis. It is noted that this is not an indication of the Company's view about the long-term potential of the project and its technology roadmap.

The Notes to the Financial Statements contained in the Company’s Annual Report form part of the Financial Statements.

The Company’s Interim Report were approved by the Board of Directors on 29 September 2026 and were signed on its behalf by George McDonaugh (Managing Director & Co-Founder) and Keld van Schreven (Managing Director & Co-Founder).

The financial information set out in this announcement does not constitute statutory accounts. The financial information has been extracted from the Company’s Interim Report and for the half-year ended 30 June 2026.

The Annual Report and Financial Statements of the Company will be available on the Company’s website:https://www.KR1.io/investors/documents

About KR1 plc

KR1 plc is a digital asset technology company listed on the London Stock Exchange, focused on the infrastructure layer of decentralised networks.

Contact
For further information, please contact:

KR1 plc (LSE: KR1)
George McDonaugh, Keld van Schreven
Phone: +44 (0)1624 630 630
Email: investors@KR1.io

Singer Capital Markets (Corporate Broker and Financial Adviser)
Investment Banking: Alex Bond, James Fischer
Equity Sales: William Gumpel
Phone: +44 (0)20 7496 3000
Email: enquiries@singercm.com

SEC Newgate (PR, Media and Financial Communications Adviser)
Ian Silvera, Bob Huxford, Dafydd Rees
Phone: +44 (0)20 3757 6882
Email: KR1@secnewgate.co.uk

Market Abuse Regulation (MAR) Disclosure
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation EU 596/2014 as it forms part of retained EU law (as defined in the European Union (Withdrawal) Act 2018).

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