Blue Star Capital PLC (LON:BLU) shares have dived on Thursday afternoon, as the firm published its’ full year results.
The firm reported that its’ net assets had fallen, as the esports and gaming markets described as ‘a year of consolidation’.
Blue Star noted that net assets were 4.6% lower totaling £5.2 million compared to £5.5 million a year ago.
The firm did add that the value of their key investments had grown marginally from £5 million to £5.1 million.
Blue Star noted that they incurred a loss the period of £684,964 compared to a profit for the previous period of £1,471,319.
The firm said that this was caused by the difference in the significant uplift achieved in SatoshiPay valuation in the prior year and the write off of the historic investment in DTL.
Tony Fabrizi Chief Executive Officer of Blue Star Capital plc, commented:
“2019 has been a year of consolidation as the Company came to terms with the disappointment and costs associated with the termination of the proposed reverse take-over of SatoshiPay in January 2019. An unfortunate consequence of the transaction terminating was that, as the Company had incurred significant transaction fees, it was forced to raise equity on two separate occasions to fund ongoing operations. Despite these setbacks, the Company’s portfolio has continued to develop with both SatoshiPay and Sthaler making good progress and post year end the Company invested in a portfolio of six esports businesses which offer significant potential.
The last year was one of consolidation with our main portfolio companies making solid progress in developing their businesses. Post year end, we have invested in a portfolio of esports businesses which offer significant potential and both SatoshiPay and Sthaler have more recently announced key strategic developments which offer great hope for the future. Overall, we are pleased with recent progress and the Board views the future with confidence.”
Blue Star invest into Esports
In October, Blue Star announced that they had invested into the Esports arena.
Jonathon Bixby, one of the original founders of bitcoin miner Argo Blockchain Plc (LON:ARB) encouraged six installments of £150,000 into different Esport fields.
Blue Star have aimed to go global with this shift, having stated the intent to start operations in UK, USA, Canada, Australia and Singapore.
Blue Star’s Chief Executive, Tony Fabrizi has committed £20,000 in the first placing, giving him a 2.3% stake. Additionally, the new Chairman, Derek Law has invested £100,000.
The company’s main investment is SatoshiPay, where it owns 27.9% of total capital.
In Satoshipay’s most recent fund raise in March 2019, this valued BlueStar’s investment at £4.6 million. Satoshipay have plans for vertical movement into the cross border B2B payments which is estimated at £160 billion, giving investors reason to expect future revenue growth.
Shares in Blue Star Capital trade at 0.090p (-18.18%). 5/3/20 14:02BST.