Supernova Digital - Annual Results

25 March 2024

The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014, as retained as part of the law of England and Wales. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.

Supernova Digital Assets PLC
("Supernova" or the "Company")

Annual Results

Supernova Digital Assets (AQSE: SOL), a company specialising in the Solana ecosystem, announces its audited results for the year ended 31 October 2023.

Chairman's Statement

Supernova Digital Assets PLC (the Company) was originally formed to take advantage of opportunities in the DeFi sector and a number of investments were made in that area. Subsequently, this sector has not experienced the growth that was anticipated and as a result the Company has sought out other opportunities.

During the course of the year ending 31 October 2023 the Board of Directors of the Company decided that best interests were served by divesting a number of non-core businesses and focusing on the Solana cryptocurrency ecosystem. It is the Board's opinion that Solana will be integral to the success of the crypto environment and there will be an increasing level of development of system architecture that sits on the Solana ecosystem. In doing so, the overhead burden of the Company was significantly reduced.

The Company's sole objective is to create value for shareholders and it was the Board of Directors view that to continue to support the non-core businesses would not achieve this. The Board believes there is considerable value accretive opportunities available in the Solana cryptocurrency ecosystem.

The Company had invested significant sums into the businesses that were divested in the expectation that this sector would generate profitable returns for shareholders. This proved not to be the case and cash expenditure exceeded revenues. As a result of divesting a number of businesses the Company had a loss of £ £6,971k in the year ending 31 October 2023.

As a result of the decision to focus on developments in the Solana ecosystem, the Company chose to invest most of its free cash into Solana ("SOL"), a digital currency. This was done at a price of £27.28. As of the date of signature of these results, the price of SOL is £134.40 and thus the Company has an unrealised gain of approximately £2,904k on this position.

In addition, the Company has 30,000,000 shares in Phoenix Digital Assets plc ("PNIX") (previously called NFT Investments plc). The Company is aware of a number of announcements by PNIX in relation to its Net Asset Values and that it intends to conduct a buyback of shares in 2024 at a price equivalent to its Net Asset Value.

Finally, the Company invested £2,290k in the IPO of Streaks AI PLC in December 2022 and £10k for 100% of the share capital of London Carbon Exchange Ltd. The rationale for the investment into the IPO of Streaks AI PLC was that the Company wanted to adopt a position in the burgeoning AI sector, and this was one of the few UK IPOs that would facilitate this.

MS Edwards

Executive Chairman

The full Annual Report of the Company is available on the Company's website: https://www.supernovaplc.com/

The directors of Supernova accept responsibility for this announcement.

This announcement may contain "forward-looking" statements and information relating to the Company. These statements are based on the beliefs of Company management, as well as assumptions made by and information currently available to Company management. The Company does not undertake to update forward‐looking statements or forward‐looking information, except as required by law.

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About Supernova Digital Assets

The Company will look to identify investment and business building opportunities in the high growth Solana and crypto currency ecosystem. The Board intends to deploy the majority of the Company's cash resources in the acquisition of minority interests in a number of different, yet to be identified, companies in the broad Solana and crypto currency ecosystem, and to apply expertise to the business operations and strategic plans of these companies. The experience, operational skills and contacts of the Board are intended to act as an accelerator to start-ups and early-stage companies to maximise their profit opportunity. It is anticipated that returns to Shareholders will be delivered through a combination of an appreciation in the Company's share price and through the adoption of a progressive dividend policy. The Company's Directors have an established track record, experience and networks in the crypto currency sector, digital assets management, as well as the media industry to drive value creation.