K33's revenue fell from 399 to 193 million Swedish kronor in the second quarter, and the result came in at minus 19.6 million. K33 Markets won a MiCA licence in June, and has since taken it into Sweden, Denmark, Finland and Germany.
Torbjørn Bull Jenssen is chief executive of K33.
K33's subsidiary K33 Markets AS was authorised under MiCA — the licence required to offer crypto services in the EU/EEA — by Norway's financial supervisory authority, Finanstilsynet, on 16 June. The quarterly report shows the regulatory foundation falling into place in a quarter where trading activity dropped sharply.
Of the 399.2 million Swedish kronor the group turned over in the second quarter of last year, less than half remains. This time the figure came in at 192.9 million. K33 attributes the drop to trading activity easing through the quarter, in line with lower activity across crypto markets.
For the first half as a whole, the picture is different. Revenue there stands at 932.8 million kronor against 849.4 million last year — a rise of around ten per cent. The arithmetic shows that close to 740 million of the half-year revenue came in the first quarter.
The bottom line for the quarter shows minus 19.6 million kronor, against minus 3.5 million at the same point last year. K33 says around 14 million of that is unrealised valuation movements — values that shift on paper without anything being bought or sold — on the company's own bitcoin and on its share of the result at Sixty Six Capital.
Operating profit before depreciation and amortisation (EBITDA) was minus 6.4 million, against minus 1.4 million last year, while operating profit (EBIT) was minus 14.1 million against minus 3.3 million. For the first half, the result is minus 55.5 million, against minus 7.5 million in the same period last year.
The authorisation from Finanstilsynet applies to K33 Markets, and it does not stop in Norway. Since the end of the quarter, the company has passported the licence into Sweden, Denmark, Finland and Germany. Passporting means an authorisation granted in one EU/EEA country can be used in the others without a new application, following a notification to the authorities.
K33 describes this as the first step in an active European expansion.
Also after the quarter ended, Sixty Six Capital entered into a call option on up to 200 bitcoin. K33 owns about 46 per cent of the Canadian company and thereby gains up to 92 bitcoin in added effective look-through exposure. That is not bitcoin K33 owns directly, but its share of the exposure at a company it does not own outright.
In the report, K33 describes its relationship with Sixty Six as further deepened during the period.
Cboe Europe has said it intends to admit K33 shares to trading from 2 September, in addition to the existing listing on Nasdaq First North Growth Market.
"Q2 marked an important strategic milestone for K33 with the receipt of our MiCA authorization. Trading activity moderated during the quarter, but we continued to strengthen the platform for a broader European business. With MiCA in place, passporting underway and our relationship with Sixty Six Capital deepening, the focus now is commercialization," says Torbjørn Bull Jenssen.
K33 AB (publ) is listed on Nasdaq First North Growth Market and runs brokerage and trading operations in digital assets.
Sources: K33
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