KR1, the blockchain-asset based investment fund, announced today it has generated a further 54,194.25 ATOM from staking activities since its last staking update in June 2019; of which 37,274.63 ATOM were sold at an average price of $4.51 USD per ATOM token, generating $168,197.12 USD in revenue.
Over 76,665.25 ATOM from staking yields has been generated in the twelve months since the Cosmos network launched back in March 2019. KR1 has realized a total of 59,745.63 ATOM of this at an average price of $4.86 USD/ATOM, which netted a total of $290,447.12 USD in realized accrued revenue from staking yields with some ATOM still sitting on the balance sheet and capable of generating future revenue.
The total amount of ATOM generated is highly dependent on the percentage of participants in the network that are actively staking their ATOM. Whilst KR1’s returns have been strong, a higher than initially anticipated percentage of ATOM were staked by other participants due to the popularity of the network, which led to nominal staking returns being lower than originally estimated in the company’s ‘Revenue from Cosmos Staking Yields’ announcement in May 2019.
KR1 says it is taking a long-term view on the price of ATOM; implementing a strategy where if the asset price is under pressure and below a certain price threshold, it will not liquidate its accruing staking yields. For now, this strategy has led to a more favorable average realized price of $4.86 USD/ATOM, versus an average daily price of $4.07 if the company had sold its proceeds on a daily basis.
“The company made a strategic decision in early 2017 to seek out innovative projects and networks that feature Proof-of-Stake as their core security model, such as the much anticipated Polkadot network, the Dfinity project and various other projects including Enigma or Bluzelle. Further, our strategy to hold onto our ATOM below a certain price threshold has greatly improved our average exit price. We’re making the very most of this successful investment and believe that in the uncertain times ahead, income from a yield-bearing portfolio could be very significant.”
– George McDonaugh, Managing Director & Co-Founder of KR1