NFT Investments' Share Price Waits for the Right Moment

Why did the share price of NFT Investments go into decline?

British blockchain company NFT Investments Plc recently announced it was withdrawing its £96 million offer to acquire Pluto Digital. This resulted in the fall of the NFT Investments share price. The company, which specialises in investing in non-fungible tokens (NFTs), decided to pull out, claiming, however, that the reasons were not of a financial nature.

“The company is well-positioned to take advantage of the recent market correction in the blockchain and digital assets sectors by investing at attractive valuations,” the company’s CEO Jonathan Bixby stated.

When talking about NFTs, we are referring to a digital asset that denotes real-world objects such as music, fan memorabilia, sports, art, in-game items, and videos. They are traded online, paid for with cryptocurrency, and generally encoded with the same underlying software as many cryptos.

Focusing on Building Global Metaverse Company

On 24 January 2022, the company signed a non-binding letter of intent for the proposed acquisition. Its shares were then suspended from trading while waiting for the negotiations to be done. The company then said it intends to build a world-important metaverse company with this acquisition and boost NFT investments within the non-fungible tokens sector as the Pluto Ventures division has heavily contributed to NFT gaming.

In the meantime, from November to March, the whole blockchain sector went through a month-long bear market, with a total market cap falling more than 40% from its record.

After the company said, in April, that it would not continue with the buy-out, it returned to active market trading. That resulted in NFT Investments' share price (NFT.PL) immediately plunging from 2.4 to 1.75 on the Aquis Stock Exchange. During the last year, NFT Investments' share price has been traded from 2.275, reaching a record of 3.6, and then turning south to 1.325. At the time of writing, the price stood at 1.45.

The company has a market capitalisation of £14 million and around 1,003 million issued shares.

Still Optimistic on Blockchain

Bixby, however, claims he still feels optimistic about the blockchain industry, especially the NFT sector that, in his words, “continues to show strong growth”.

“Despite volatile market conditions, we secured a stake in seven companies that have high growth potential and are equipped to make an impact on the blockchain sector," he said, hinting that maybe the whole story on possible further acquisitions ain’t over.

"The NFT sector continues to show strong growth and we have a cash-rich balance sheet to take advantage of new investment opportunities to generate long-term value for shareholders and deliver a sustained increase in net asset value, which currently amounts to 3.43p per share," he added.

The company definitely did its best in only one business year. It raised £35 million before expenses through a flotation on the Aquis Stock Exchange Growth Market. After that, it invested approximately £5.8 million in seven media start-ups and technology businesses engaged in NFTs and cryptocurrencies.

The company also gained around £1.73 million from the acquisition of NFT gaming company Kodoku Studios Ltd. The truth is, as the metaverse grows, uses for NFTs will grow as well. Backed by blockchain, NFTs offer immutable records of originality, uniqueness, and ownership that may prove better than old methods.

The shares of the companies investing in the NFT sector will probably rise in the long-term since these companies have a bigger exposure to the whole sector, enabling equity investors to speculate on the sector's growth.