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  1. #1
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    Default Crossgate Capital

    Noticed new entity on the USX today.

    Crossgate_Capital_Annual_Report_2021.pdf (usx.co.nz) Main activity is Cryptocurrency investing.

    Not alot about directors/management but noted they were all involved in Senior Trust (NZX:SRF). Bit of a change from retirement villages to crypto currency....

  2. #2
    Member Tony Two Gloves's Avatar
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    Quote Originally Posted by Sideshow Bob View Post
    Noticed new entity on the USX today.

    Crossgate_Capital_Annual_Report_2021.pdf (usx.co.nz) Main activity is Cryptocurrency investing.

    Not alot about directors/management but noted they were all involved in Senior Trust (NZX:SRF). Bit of a change from retirement villages to crypto currency....
    I looked into buying shares with them a while back but found it wasn't that hard to set up wallets etc myself. I do like their safe storage etc and I think their portfolio of currencies looks good. The SP will be based on the current value of their holding so I expect a bit of volatility in this one. Saying that if you want some exposure to Crypto this is a very easy way to be involved. Actually their SP was getting close to $6 a few months ago now at $3.99 on their website such are the big movements at the moment.
    Last edited by Tony Two Gloves; 10-06-2021 at 08:59 AM.

  3. #3
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    Quote Originally Posted by Tony Two Gloves View Post
    I looked into buying shares with them a while back but found it wasn't that hard to set up wallets etc myself. I do like their safe storage etc and I think their portfolio of currencies looks good. The SP will be based on the current value of their holding so I expect a bit of volatility in this one. Saying that if you want some exposure to Crypto this is a very easy way to be involved. Actually their SP was getting close to $6 a few months ago now at $3.99 on their website such are the big movements at the moment.
    From their annual "review" for the year ended 31/3/21

    The revaluation of Crossgate Capital’s investment assets for financial reporting purposes was undertaken on a specific date being 31 March 2021, which resulted in our Share price, after tax, being Letter From the BoardInstitutional capital entering the cryptocurrency market is the direction of travel that we envisaged. During the year the cryptocurrency market has seen significant growth. CROSSGATE CAPITAL LTD 5reported as $4.70. When the offer opened on 1 April 2019, the Share price was $1.00. Since inception we report a $2.7m increase in the fair value of our investments which at year-end has resulted in Crossgate Capital holding $3.5m of cryptocurrencies

    As above, holding $3.5m in crypto (total assets $3.6m) as at 31/3/21, with 3.6m shares on issue, but they are valued at $4.70?? As you say, can only base their value on the current value of their holding, and there would be some big swings at times.

    Shares obviously allocated/bought for alot less than the initial price of $1/each

    Would be interested how their stated "share price" is formulated, as surely even at $3.99, the share price is over-egged??? ie share price too high relative to the value of assets, unless they've had a stellar 2.5months, and increased the value of crypto to 3.6m x $3.99 = $14.36m??

  4. #4
    Member Tony Two Gloves's Avatar
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    Quote Originally Posted by Sideshow Bob View Post
    From their annual "review" for the year ended 31/3/21

    The revaluation of Crossgate Capital’s investment assets for financial reporting purposes was undertaken on a specific date being 31 March 2021, which resulted in our Share price, after tax, being Letter From the BoardInstitutional capital entering the cryptocurrency market is the direction of travel that we envisaged. During the year the cryptocurrency market has seen significant growth. CROSSGATE CAPITAL LTD 5reported as $4.70. When the offer opened on 1 April 2019, the Share price was $1.00. Since inception we report a $2.7m increase in the fair value of our investments which at year-end has resulted in Crossgate Capital holding $3.5m of cryptocurrencies

    As above, holding $3.5m in crypto (total assets $3.6m) as at 31/3/21, with 3.6m shares on issue, but they are valued at $4.70?? As you say, can only base their value on the current value of their holding, and there would be some big swings at times.

    Shares obviously allocated/bought for alot less than the initial price of $1/each

    Would be interested how their stated "share price" is formulated, as surely even at $3.99, the share price is over-egged??? ie share price too high relative to the value of assets, unless they've had a stellar 2.5months, and increased the value of crypto to 3.6m x $3.99 = $14.36m??
    Hmmm interesting, the SP on their website is $3.99 as at 9/6 so unless the number of shares is incorrect and they were issuing more shares to get down to the $1.00 mark? They have there portfolio on their website also and I would suspect those coins are down significantly. BTC was $83K NZD on the 1/4 and is now $52K and the smaller coins have been savaged more - unfortunately I hold a lot of the same coins as they do......

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    Number of shares from here:

    CCL_Issuer_Profile_2021.pdf (usx.co.nz) 3.609m on issue

    Company Registry - 3.65m Shareholdings (companiesoffice.govt.nz)

    Looking at the documents, as at 31/3/21 they have 3.58m. Looks like new shares have been issued about 9 times since then - most of the time just a few thousand here or there.

    Judging by the documents, since its inception, as shares have been sold, they have simply issued more.

    Start of 2019, total shares were 3,000,000 to the 3 main shareholders/directors, and they still own the 3,000,000 - so would must been issued at XX cents each? Can't have been at $1 each (their stated value) as the company would had $3m in assets then, so wouldn't have had the growth that they state - ie assets now of $3.6m, and couldn't back the increase in share price.

    As you mention TGT, large holding of BTC which is down heavily since the annual review - so hard to see how they quadrupled their net assets to justify the $3.99 valuation. Especially as don't seem to be trading. From their website:

    The indicative long term portfolio weightings are provided below. To mitigate any unnecessary transaction fees or tax implications, we re-weight the portfolio through purchases as opposed to selling any of the cryptocurrencies.

    Then as writing this post, I noticed another announcement! (Not yet on companies website)

    DL9_Corportate_Actions_09.06.21.pdf (usx.co.nz)

    So every new share appears to raise the net asset per share. Hard to sell how they value their shares, especially as just keep issuing more!!

    Not sure what happens when they start to trade on the USX, no bids or offers so far. Will someone pay $3.99?? Or will they trade at a discount or premium!! Needs to be almost a daily or weekly NTA per share to be able to trade them.

    Simply just not an investment for me (especially at $3.99) - just a morbid fascination on how structured and value themselves! And not clear to me.

  6. #6
    Member Tony Two Gloves's Avatar
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    Quote Originally Posted by Sideshow Bob View Post
    Number of shares from here:

    CCL_Issuer_Profile_2021.pdf (usx.co.nz) 3.609m on issue

    Company Registry - 3.65m Shareholdings (companiesoffice.govt.nz)

    Looking at the documents, as at 31/3/21 they have 3.58m. Looks like new shares have been issued about 9 times since then - most of the time just a few thousand here or there.

    Judging by the documents, since its inception, as shares have been sold, they have simply issued more.

    Start of 2019, total shares were 3,000,000 to the 3 main shareholders/directors, and they still own the 3,000,000 - so would must been issued at XX cents each? Can't have been at $1 each (their stated value) as the company would had $3m in assets then, so wouldn't have had the growth that they state - ie assets now of $3.6m, and couldn't back the increase in share price.

    As you mention TGT, large holding of BTC which is down heavily since the annual review - so hard to see how they quadrupled their net assets to justify the $3.99 valuation. Especially as don't seem to be trading. From their website:

    The indicative long term portfolio weightings are provided below. To mitigate any unnecessary transaction fees or tax implications, we re-weight the portfolio through purchases as opposed to selling any of the cryptocurrencies.


    Then as writing this post, I noticed another announcement! (Not yet on companies website)

    DL9_Corportate_Actions_09.06.21.pdf (usx.co.nz)

    So every new share appears to raise the net asset per share. Hard to sell how they value their shares, especially as just keep issuing more!!

    Not sure what happens when they start to trade on the USX, no bids or offers so far. Will someone pay $3.99?? Or will they trade at a discount or premium!! Needs to be almost a daily or weekly NTA per share to be able to trade them.

    Simply just not an investment for me (especially at $3.99) - just a morbid fascination on how structured and value themselves! And not clear to me.
    Not clear to me either! Feel it really needs to be easy to understand and it would be very easy to have a current value of their holdings on their website updated daily and from this a fair value of each share could be easily calculated. I to am interested in this but will not be buying shares as it is relatively simple to invest yourself with no ongoing fees and you get to keep the income from the coins if staked. I wonder if they knew about Catalist coming to the market as may have been easier and cheaper than USX.

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    Quote Originally Posted by Tony Two Gloves View Post
    Not clear to me either! Feel it really needs to be easy to understand and it would be very easy to have a current value of their holdings on their website updated daily and from this a fair value of each share could be easily calculated. I to am interested in this but will not be buying shares as it is relatively simple to invest yourself with no ongoing fees and you get to keep the income from the coins if staked. I wonder if they knew about Catalist coming to the market as may have been easier and cheaper than USX.
    Perhaps didn't know about Catalist.

    But seemingly Catalist more regulated than Unlisted?? What are the benefits of a licensed stock exchange? (catalist.co.nz)

  8. #8
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    Quote Originally Posted by Tony Two Gloves View Post
    Not clear to me either! Feel it really needs to be easy to understand and it would be very easy to have a current value of their holdings on their website updated daily and from this a fair value of each share could be easily calculated. I to am interested in this but will not be buying shares as it is relatively simple to invest yourself with no ongoing fees and you get to keep the income from the coins if staked. I wonder if they knew about Catalist coming to the market as may have been easier and cheaper than USX.
    Beyond me.
    Nothing seems to make any sense to me.
    Totally off my radar now..
    Last edited by percy; 11-06-2021 at 08:36 AM.

  9. #9
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    Quote Originally Posted by percy View Post
    Beyond me.
    Nothing seems to make any sense to me.
    Totally off my radar now..
    I know you've been busy on Unlisted and follow a number of companies - understand your stance! I don't understand either......

    Investing 101 if you can't understand (or in this case can't understand how its valued) then don't invest in it.

  10. #10
    Member Tony Two Gloves's Avatar
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    Quote Originally Posted by Sideshow Bob View Post
    I know you've been busy on Unlisted and follow a number of companies - understand your stance! I don't understand either......

    Investing 101 if you can't understand (or in this case can't understand how its valued) then don't invest in it.
    I wonder if this answers our queries?

    NOTE 8: SHARE CAPITALThe Company has 97,000,000 Class A shares on offer of which 590,127 (2020: 185,880)have been issued and 3,000,000 Class B Shares that have been issued to the foundingshareholders. Both Class A & Class B shares have no par value.
    NOTE 8: SHARE CAPITALThe Company has 97,000,000 Class A shares on offer of which 590,127 (2020: 185,880)have been issued and 3,000,000 Class B Shares that have been issued to the foundingshareholders. Both Class A & Class B shares have no par value.

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