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Coinsilium Group Ltd on Wednesday reported that it swung to an annual loss as it incurred a realised loss on token value amid a significant decline in the price of bitcoin.
The Gibraltar-based blockchain and crypto finance company said pretax loss in 2022 was £2.1 million, swung from a profit of £13,774 in 2021. Revenue declined to £211,523 from £529,812.
Coinsilium said realised loss on token value was £1.3 million, swung from a gain of £1.5 million in 2021.
‘2022 will undoubtedly go on record as one of most challenging periods for the digital asset industry to date, driven in the main by deteriorating global macroeconomic conditions and regulatory concerns, with the crypto markets remaining highly volatile throughout the period and the price of bitcoin and ethereum ending the year down by some 58% and 64% respectively,’ the company explained.
It added however that it made ‘solid operational progress across its investment and advisory activities’ such as an advisory agreement with clothing brand Blvck Paris.
Looking ahead, the company was optimistic regarding a ‘growing level of activity building in the wider Web3 venture space,’ emphasising the South East Asia region. In May, Coinsilium bought the Tokenomi Web3 advisory service business for £116,500, with Tokenomi’s owner and managing director Alexis Nicosia joining its advisory board.
‘We now look to scaling up and further developing our advisory service capabilities as a revenue generating adjunct to Coinsilium’s investment and venture building activities,’ Coinsilium said.
Coinsilium shares were flat at 1.30 pence each on Wednesday afternoon in London.
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