FCA: Consumers Will Be Able To Invest In Listed Crytpo Securities From October
The FCA has traditionally not been known to be ahead of the curve, not necessarily delivering the goods for retail investors, and there are some (myself) who may question why we have the FCA at all. After all, before the mid 1980s and the Securities and Investments Board Ltd, we did not have this kind of Quango. As we know, in most cases Quangos are “Qrap” at what they do, and are just another cost on the taxpayer. Obviously, there is a need for some kind of policing / rules for the financial markets. The problem is that it is very difficult to pinpoint what the benefits are, and whether they prevent things like the Libor scandal, miss-selling, crashes and other assorted rip-offs. My argument is that they do not, any more than catching someone for going at 24 mph in a 20mph zone necessarily saves lives.
As far as the latest news from the FCA regarding crypto ETNs being opened up to consumers, it really does appear to be too late, and probably irrelevant. For instance, most keen crypto buyers have already found a way of getting around the rules, or getting exposure to the space. The latest from the FCA is the completion of a striptease act style revelation of opening up the space, one that transformed the London stock market with the arrival of the Bitcoin Treasury Strategy stocks, as proposals to extend the availability of the investment to retail consumers were announced in June by the regulator. There are some who would like retail investors to lose money for their own benefit, who have already suggested that the news regarding a change in access to crypto in October will mean that BTS stocks will become obsolete. However, this may be wishful thinking. First, the money raised thus far is not going away, and will be deployed in crypto ((AQSE: COIN) topped up to 124 BTC this week), giving investors the leveraged exposure to the space they have been looking for. Second, the more creatively this is done, the better these stocks will perform. There is already a differentiation going on in the BTS stocks, for instance, Smarter Web (AQSE:SWC) is already the leader of the pack with a £500m market cap. Let the battle begin as far as who else can join SWC to make up the top 10 of the UK BTS space.
Stocks That Have Risen On News
Empresaria (EMR) and Just Group (JUST) led the way with bid approaches. As far as companies who are staying with us were concerned, Paddington Bear friendly Nativo Resources (NTVO), a gold-focused mining company with interests in Peru, was finally a decent riser this week. This was after a number of false dawns for the shares over the recent past. After the previous week’s bond restructuring the company raised £150,000, with the market giving all this the thumbs up in the form of a 66% share price rise this week in the wake of the fundraise. Tasty (TAST) was also on the front foot as the confirmed it has held advanced talks with David Page and Nicholas Wong of Pizzaexpress and Fulham Shore fame, regarding funding options with a view to investing in future strategic opportunities. On Friday the company proposed a £9.25m fundraise and a name change to Bow Street Group. The shares were up 50% on the week. Panther Metals (PALM) has of late been toggling between news regarding its new cryptocurrency strategy, and the day job of exploration. The latest here was Winston Tailings Assays Confirm Gold, Gallium, Silver, Zinc, Copper & Cobalt, as well the company saying it no longer plans to proceed with a traditional £4 million capital raise via the public markets. The Company’s Bitcoin Treasury funding model is to be built around a Bitcoin-backed equity issuance strategy.
Alkemy (ALK) reached the Promised Land of funding this week, as the holding company of Tees Valley Lithium Ltd announced that it has secured full financing for the FEED (Front-End Engineering Design Study) of its lithium refinery in Teesside and has received an indicative term sheet from Ara Partners LLC for the equity participation of the US$250 million main financing. The shares closed the week up 24%, having been significantly higher.
Director share buying helped shares of Powerhouse (PHE), the company pioneering integrated technology that converts non-recyclable waste into low carbon energy. Its shares rose 20%, in the wake of last month’s letter of intent with BS Holdings Ltd to become the exclusive hydrogen supplier for a planned fuel cell project in Ballymena, Northern Ireland. There was also director share buying at NYCE International (AQUIS: NYCE) after it announced the launch of its new Crypto advisory arm, primarily focused around the iGaming industry. It said advisory areas include but are not limited to strategy, product design, infrastructure, content and tokenomics.
Vaultz Capital (AQSE:V3TC) was up by nearly a third on the week, as the digital asset operating company, announce a proposed Capital Raising at 7.75 pence per share. The Company intends to raise approximately £6 million in total. There was also a good reception to changes to the composition of the Board and the establishment of a newly formed Bitcoin Advisory Board to support the Board of Directors in executing its core digital asset operating strategy and advancing the Company’s Bitcoin Treasury initiative.
Eurasia Mining (EUA) was up 11% on the week as the PGM mining company announced an update on West Kytlim operations, as well as AIX listing progress. EUA said “compliance with the West Kytlim licence agreement has resulted in the step-change breakthrough in terms of volumes towards our long-term annual target of 64Koz of precious metals in the Urals. Coupled with recent dual-listing in Astana, where we are working on changing the trading currency from GBP to specific denominated currency units to facilitate BRICS investors to include Eurasia’s shares into their portfolios.”
Stocks Rising On No New News
Mila Resources (MILA) added to the previous week’s gains with a 17.6%, after news Phase 2 exploration programme has now commenced at its flagship Yarrol Gold Project, which forms part of the Company’s Queensland Gold & Copper Portfolio in central Queensland, Australia. Mila said that is focused on unlocking the mineralised system across the 20km Yarrol Fault and defining a maiden mineral resource. Technology investor GS Chain (GSC) has had no news since its interims in April, but the shares came to life to the tune of 15%, as presumably one or two people are guessing that there will be fresh news soon.
Borders & Southern (BOR) shares continued their recent strong run, adding another 28% even though there has not been a new RNS since director dealing in June for the Falklands focused oil and gas group. Fusion Antibodies (FAB) continued to gain, this time by 25% on the week, after the US patent breakthrough announced the previous week for the pre-clinical antibody discovery company. Kazera (KZG) was up nearly a quarter, even though there has not been fresh news here since the operational update on Whale Head Minerals, its heavy mineral sands project in South Africa at the beginning of last month. There was further positive reaction to the tune of 20% on the week, at explorer Wishbone Gold (WSBN) after it flagged the start of drilling operations at Red Setter on July 21st.
Disclaimer & Declaration of Interest:
The information, investment views, and recommendations in this Zaks Traders Cafe interview are provided for general information purposes only. Nothing in this interview should be construed as a promotion or solicitation to buy or sell any financial product relating to any companies under discussion or referred to or to engage in or refrain from doing so or engage in any other transaction. Any opinions or comments are made to the best of the knowledge and belief of the commentator but no responsibility is accepted for actions based on such opinions or comments. The commentators may or may not hold investments in the companies under discussion.
