KR1 PLC (LON:KR1) has said there are “exciting times ahead” for the firm and that it is “in a very strong position for the digital asset markets entering a new bull cycle”.

In its results for the half-year ended June 30, the digital asset and cryptocurrency investment firm also said it is witnessing evidence of the coming upward cycle with “increased assets on the balance sheet, successful partial investment exits at many multiples and newer, stronger cash flows from more and more staking activities being switched on”.

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KR1 also said the recent purchase of Bitcoin and other key digital assets by company treasuries and investor portfolios, particularly a recent US$425mln Bitcoin purchase by US business intelligence firm company MicroStrategy Inc (NASDAQ:MSTR), which the company was made as a hedge against possible inflation.

“We expect the trend of strengthening balance sheets and diversification into Bitcoin to continue as the world’s monetary policies shift evermore towards unbridled money printing and higher inflation. The digital asset world will continue to disrupt and innovate in all directions, and although the disruption will be most keenly felt in finance first through [decentralised finance], we will see this impact every industry over time”, said KR1 managing directors George McDonaugh and Keld van Schreven.

In the figures for the first half, KR1 reported a profit on ordinary activities before tax of £521,666 compared to £4.6mln in the previous year, while net current assets stood at £8.08mln.

Shares in KR1 were trading at around 13p in late-afternoon on the Aquis Exchange on Wednesday.