REG - Supernova Digital - Interim Results

RNS Number : 4371O Supernova Digital Assets PLC 30 July 2026  30 July 2026Supernova Digital Assets PLC("Supernova" or the "Company")Half-yearly results for the six months ended 30 April 2026Supernova (AQSE: SOL), a company specialising in the Solana ecosystem, announces its unaudited half-yearly results for the six months ended 30 April 2026.The Directors of Supernova take responsibility for this announcement.For further information please contact:Supernova Digital Assets PLCMike EdwardsExecutive ChairmanVia First SentinelFirst SentinelBrian StockbridgeCorporate Adviser+44 7858 888 007Important NoticeThe Company holds cryptocurrencies or cryptoassets. Whilst the Board of Directors of the Company considers holding cryptocurrencies to be in the best interests of the Company, the Board remains aware that the financial regulator in the UK (the Financial Conduct Authority or FCA) considers investment in cryptocurrencies to be high risk. At the outset, it is important to note that an investment in the Company is not an investment in cryptocurrencies, either directly or by proxy and shareholders will have no direct access to the Company's holdings. However, the Board of Directors consider cryptocurrencies to be an appropriate store of value and potential growth and therefore appropriate for the Company. Accordingly, the Company is and intends to continue to be materially exposed to cryptocurrencies.The Company is neither authorised nor regulated by the FCA, and the purchase of certain cryptocurrencies are generally unregulated in the UK. As with most other investments, the value of cryptocurrencies can go down as well as up, and therefore the value of the Company's cryptocurrencies holdings can fluctuate. The Company may not be able to realise its cryptocurrencies holdings for the same as it paid to acquire them or even for the value the Company currently ascribes to its cryptocurrencies positions due to market movements. Neither the Company nor investors in the Company's shares are protected by the UK's Financial Ombudsman Service or the Financial Services Compensation Scheme.Cryptocurrencies may present special risks to the Company's financial position. These risks include (but are not limited to): (i) the value of cryptocurrencies can be highly volatile, with value dropping as quickly as it can rise. Investors in cryptocurrencies must be prepared to lose all money invested in cryptocurrencies; (ii) the cryptocurrencies market is largely unregulated. There is a risk of losing money due to risks such as cyber-attacks, financial crime and counterparty failure; (iii) the Company may not be able to sell its cryptocurrencies at will. The ability to sell cryptocurrencies depends on various factors, including the supply and demand in the market at the relevant time. Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay; and (iv) cryptoassets are characterised in some quarters by high degrees of fraud, money laundering and financial crime. Prospective investors in the Company are encouraged to do their own research before investing.Executive Chairman's statementFor the six month's ended 30 April 2026The six months ended 30 April 2026 were characterised by continued weakness across cryptocurrency markets, with digital asset valuations declining significantly and creating a challenging operating environment for companies with exposure to the sector.These adverse market conditions persisted throughout the period under review. In response, the Board continued to reduce the Company's operating cost base wherever practicable while ensuring compliance with the obligations associated with maintaining its public listing. Certain expenditure, including audit, AQSE advisory, registrar and listing fees, remains essential to maintaining the Company's listing and cannot be materially reduced.During the period, the Company realised a portion of its Solana holdings, resulting in a corresponding reduction in staking income. The Board has also evaluated the merits of reallocating capital from Solana into Bitcoin, reflecting its view that Bitcoin may be better positioned to benefit from any sustained recovery in digital asset markets.The Company continued to assess the most appropriate means of meeting its ongoing operational requirements. While the sale of additional digital assets remains a source of liquidity, the Directors believe that disposing of assets at prevailing market valuations would not be in the best interests of shareholders. Accordingly, the Board has continued to pursue alternative sources of funding with the objective of preserving the Company's long-term digital asset holdings.As previously announced, the Company entered into a collateralised digital asset lending facility with Amina Bank AG, under which certain cryptocurrency holdings were pledged as collateral in exchange for cash borrowings. The facility enabled the Company to increase its investment exposure during the period.The Company is now progressing a transition to an alternative lending provider with the objective of securing more competitive financing terms, including lower borrowing costs and improved loan-to-value ratios. Discussions are at an advanced stage; however, there can be no assurance that revised facilities will be concluded or that they will be available on terms acceptable to the Company. Subject to a successful outcome, the Board believes such facilities would reduce the likelihood of the Company needing to dispose of digital assets while market valuations remain depressed.The Board remains focused on prudent capital management, disciplined cost control and preserving the Company's balance sheet through the current market cycle. While near-term market conditions remain challenging, the Directors believe that maintaining financial flexibility and preserving the Company's core digital asset exposure will position the Company to benefit from any future recovery in digital asset markets.Michael EdwardsExecutive Chairman29 July 2026Statement of Comprehensive IncomeFor the six months ended 30 April 2026UnauditedAuditedNoteSix months ended 30 AprilYear ended 31 October20262025 (restated)*2025£'000£'000£'000Revenue7229756472297564Other operating income-63153Fair valuation movement in investments(810)(98)947(Loss)/profit on disposal of intangible assets - cryptocurrencies(73)91(323)Loss on disposal of investments--(256)Share based payment-(46)(194)Administrative expenses(414)(522)(904)Operating Loss(1,225)(215)(13)Finance income--1Loss before taxation(1,225)(215)(12)Taxation---Loss after taxation(1,225)(215)(12)Other comprehensive (loss)/incomeFair valuation movements in intangible assets - cryptocurrencies(2,830)(807)206Total comprehensive (loss)/income for the period(4,055)(1,022)194Loss per ordinary share:Basic loss per share4(0.08p)(0.01p)-Diluted loss per share4(0.08p)(0.01p)-*The comparative information has been restated as a result of the change in accounting policy as discussed in note 3. The gains on cryptocurrencies, previously recognised in profit or loss, have been reclassified to other comprehensive income.Statement of Financial PositionAs at 30 April 2026UnauditedAuditedNoteSix months ended 30 AprilYear ended 31 October20262025(restated)*2025£'000£'000£'000Non-Current AssetsIntangible assets - cryptocurrencies52,5563,1065,495Investments3691,7801,179Total non-current assets2,9254,8866,674Current AssetsTrade and other receivables161919Cash and cash equivalents319113Total current assets1938132Total assets2,9444,9246,806Shareholders' equityShare capital1,6031,6031,603Share premium---Treasury shares(375)(150)(375)Distributable reserve9,8929,8929,892Revaluation reserve4922,7263,322Share based payments reserve435287435Retained earnings(10,235)(9,630)(9,010)Total shareholders' equity1,8124,7285,867Current LiabilitiesInterest bearing loans and borrowings847150762Trade and other payables28546177Total current liabilities1,132196939Total liabilities1,132196939Total equity and liabilities2,9444,9246,806*The comparative information has been restated as a result of the change in accounting policy as discussed in note 3.Statement of Changes in EquityFor the six months ended 30 April 2026Share capitalShare PremiumTreasury reserveDistributable reserveRevaluation reserveShare-based payments reserveRetained earningsTotal£'000£'000£'000£'000£'000£'000£'000£'000UnauditedSix months ended 30 April 2026At 1 November 20251,603-(375)9,8923,322435(9,010)5,867Loss for the period------(1,225)(1,225)Total other comprehensive loss for the period----(2,830)--(2,830)Total comprehensive loss for the period----(2,830)-(1,225)(4,055)At 30 April 20261,603-(375)9,892492435(10,235)1,812UnauditedSix months ended 30 April 2025At 1 November 2024(restated)*1,603--9,8923,533241(9,415)5,854Loss for the period------(215)(215)Total other comprehensive loss for the period----(807)--(807)Total comprehensive loss for the period----(807)-(215)(1,022)Purchase of treasury shares--(150)----(150)Share based payment-----46-46At 30 April 20251,603-(150)9,8922,726287(9,630)4,728AuditedYear ended 31 October 2025At 1 November 2024(restated)*1,603--9,8923,533241(9,415)5,854Loss for the year------(12)(12)Total other comprehensive income for the year----206--206Total comprehensive income/(loss) for the year----206-(12)194Purchase of treasury shares--(375)----(375)Share based payment-----194-194Realised gain on crypto disposals----(417)-417-At 31 October 20251,603-(375)9,8923,322435(9,010)5,867*The comparative information has been restated as a result of the change in accounting policy as discussed in note 3.Statement of Cash Flows                              For the six months ended 30 April 2026UnauditedAuditedSix months ended 30 AprilYear ended 31 October20262025(restated)*2025£'000£'000£'000Operating activitiesLoss/(profit) for the period(1,225)(215)(12)Adjustments:Non-cash generated income(72)(297)(564)Dividend income-(63)(153)Fair value loss/(gain) on investments81098(947)Profit on disposal of investments--256Loss/(profit) on disposal of cryptocurrencies73(91)323Foreign exchange--7Share based payment-46194Expenses settled utilising cryptocurrencies3216897Working capital adjustments:Decrease/(increase) in trade and other receivables3(14)(15)Increase/(decrease) in trade and other payables108(40)91Net cash used in operating activities(271)(408)(723)Investing activitiesDisposal of investments--1,390Purchase of intangible assets - cryptocurrencies--(1,458)Disposal of intangible assets - cryptocurrencies76304304Dividend income-63153Net cash from investing activities76367389Financing activitiesPurchase of treasury shares-(150)(375)Financial Liability raised85150762Net cash from financing activities85-387Net decrease in cash and cash equivalents(110)(41)(53)Cash and cash equivalents at start of financial period1136060Cash and cash equivalents at end of financial period319113*The comparative information has been restated as a result of the change in accounting policy as discussed in note 3.Notes to the Interim Financial Statements for the six months ended 30 April 20261.     Basis of preparationThe interim results of Supernova Digital Assets PLC (the Company) are prepared in accordance with the requirements of IAS 34 Interim Financial Reporting and are prepared in accordance with the accounting policies set out in the last financial statements for the year ended 31 October 2025. Supernova Digital Assets PLC expects to apply the same policies in its financial statements for the year ending 31 October 2026.The financial information for the six months ended 30 April 2026 and for the six months ended 30 April 2025 have neither been audited nor reviewed by the Company's auditors. The comparative financial information for the year ended 31 October 2025 has been derived from the audited financial statements for that period.2.     Critical accounting estimates and judgementsThe preparation of the financial statements requires management to make judgements, estimates and assumptionsthat affect the application of accounting policies and the reported amounts of assets, liabilities, income and expense.Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoingbasis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in anyperiods that will materially affect the accuracy of the financial statements. The areas involving a higher degree ofjudgement or complexity, or areas where assumptions and estimates are significant to the financial statements, have been disclosed in the last financial statements for the year ended 31 October 2025.There are no additional judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.3.     Change in Accounting Policy - Fair value measurement of CryptocurrenciesAs stated in the audited financial statements for the year ended 31 October 2025, during the 2025 year end period, the Company reviewed its accounting policy for the treatment of fair value movements in its cryptocurrency holdings. Previously, the Company recognised unrealised gains and losses arising from changes in the fair value of cryptocurrencies directly in the Statement of Profit or Loss.The change in accounting policy has been applied retrospectively in accordance with IAS8. As a result, comparative figures have been restated.4.     Loss/profit per ordinary shareThe calculation of a basic (loss)/profit per share is based on the (loss)/profit for the period attributable to equity holders of the Company and on the weighted average number of shares in issue during the period.Diluted (loss)/profit per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential ordinary shares.For all the periods presented, there is no difference between the diluted loss per share and the basic loss per share presented due to the loss position of the Company. Share options and warrants could potentially dilute basic earnings per share in the future, but were not included in the calculation of diluted earnings per share as they are anti-dilutive for the periods presented.5.     Intangible Assets - cryptocurrenciesUnauditedAuditedSix months ended 30 AprilYear ended 31 October2026£'0002025£'0002025£'000At start of the period5,4953,9983,998Additions--1,458Yield income/revenue72297564Fair value (losses)/gains cryptocurrencies(2,830)(807)206Disposals(181)(382)(724)Exchange differences--(7)At end of the period2,5563,1065,495At the end of the periods presented below, the Company held cryptocurrencies as detailed:UnauditedAuditedSix months ended 30 April 2026Six months ended 30 April 2025Year ended 31 October 2025Number of tokensFair value£'000Number of tokensFair value£'000Number of tokensFair value £'000Bitcoin BTC5.389013021.45960(86)5.90063492Solana SOL32,771.722,00029,009.843,19233,358.434,747Bittensor TAO1,065.60254--355.20130Meme-----*1262,5563,1065,495*the Meme coins were made up of a various smaller tokensAny unrealised gains arising on the revaluation of the intangible assets-cryptocurrencies are allocated to the revaluation reserve account and are non-distributable.This information is provided by RNS, the news service of the London Stock Exchange. 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