Phoenix Digital Assets (formerly NFT Investments) will buy back more than half (57.9%) of its issued shares using money from its crypto holdings.
After a torrid period for cryptocurrencies, the firm’s assets soared in the 2024 rally, rising from £47.1m at the start of the year to £71.4m in April.
Yet despite roaring performance this year, shares in the company still traded at a 51% discount to its net asset value as of April. In buying each of its shares for 5.39p, Phoenix Digital Assets is repurchasing them at a 35% premium.
The firm said selling its crypto holdings to buy back shares will “crystallise a taxation liability”.
Jonathan Bixby, chairman of Phoenix Digital Assets, added: “This tender offer is a means of returning this value to shareholders and safeguarding the future of Phoenix as we continue our strategic aim of becoming the premier large cap crypto currency fund in the UK.”
