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(Sharecast News) - Blue Star Capital reported a sharply reduced annual loss and a strengthened balance sheet for the year ended 30 September on Friday, reflecting lower fair value losses and increased exposure to SatoshiPay.
The AIM-traded blockchain and payments investor recorded a pre-tax loss of 665,606, compared with a loss of 4.49m in the prior year.
It said the improvement was driven principally by a significantly lower fair value movement on investments of 346,928, against 4.31m in 2024.
Net assets increased to 2.87m at the year end from 937,381, supported by new equity capital raised during the period and a higher carrying value of its investment in SatoshiPay.
The total valuation of investments rose to 1.55m from 970,394.
During the year, Blue Star increased its exposure to SatoshiPay through a 75,000 subscription via a SAFE instrument and the acquisition of 4,531 shares, representing around 22% of SatoshiPay's issued share capital, in exchange for 4.41 million new Blue Star shares.
As at 30 September, the carrying value of its SatoshiPay investment was 1.53m.
The board said that, given the challenges in reliably determining fair value, it had held the investment at cost, including additions made during the year, which it considered a prudent approach.
It also advanced a 1m secured loan to SatoshiPay to support its treasury and digital asset deployment strategy.
At year end, the loan had a fair value of 1.02m, reflecting a 15,246 gain recognised in profit or loss.
Other portfolio holdings were written down, with Dynasty Gaming & Media reduced to 13,965 and Paidia Esports to 13,186, reflecting uncertainty around exit timing and market conditions.
Administrative expenses increased to 193,257 from 162,309, largely due to higher professional costs linked to capital reorganisation, fundraisings and transaction activity.
A share-based payment charge of 126,700 was recognised in connection with warrants granted to directors in lieu of cash remuneration.
During the year, the company completed a 200-to-one share consolidation and subdivision to facilitate equity raises, including 1.15m raised in July.
Net cash generated from financing activities totalled 1.59m, compared with 100,000 in the prior year.
Cash as at 30 September stood at 313,236, up from 5,828.
"The last year has been one of significant change for Blue Star," said executive chairman Tony Fabrizi.
"We have more than doubled our shareholding in SatoshiPay to around 58% on a diluted basis."
He added that SatoshiPay's wholly owned business Vortex had launched a fiat-to-crypto infrastructure platform and was "now firmly established in Brazil, growing quickly and planning to offer a full money transfer business later this year."
Fabrizi said that while Vortex remained early-stage and difficult to value, "the board believes progress over the last year justifies its confidence in SatoshiPay and the potential for it to provide significant returns for Blue Star shareholders."
At 1505 GMT, shares in Blue Star Capital were up 8.82% at 9.25p.
Reporting by Josh White for Sharecast.com.