Blue Star Capital Share Discussion Threads

[888icb] 09/2/2023 16:32

Surged into the close Up 39.2% on volume of 72.5 million.

[tradeforce] 09/2/2023 16:28

It really is hard to comprehend the potential!

[highly geared] 09/2/2023 16:21

The risk reward here is great. Dynasty will easily cover the market cap up to say £20-30 million ( with some speculative upside) but Dtransfer and Pendulum is currently thrown in for free.

Assuming a degree of success and market share over the next 2-3 years, even at say £10 million recurring revenues with a high gross margin, ascribing a PE of say 15 , gets you to £100 million market cap without having to think too hard.

If Dt and Pendulum really take off then think 100 bagger from these levels.

[steveberyl] 09/2/2023 15:53

What is Forex (FX)?
Forex (FX) refers to the global electronic marketplace for trading international currencies and currency derivatives. It has no central physical location, yet the forex market is the largest, most liquid market in the world by trading volume, with trillions of dollars changing hands every day. Most of the trading is done through banks, brokers, and financial institutions.

The forex market is open 24 hours a day, 7 days a week, except for holidays. The forex market is open on many holidays on which stock markets are closed, though the trading volume may be lower.

This is a BEAR PIT, mostly unregulated and charges can vary enormously, rather like an option that has no ending. Resulting in crippling charges. Best way to describe our 27.9% PEN/SAT Through DTransfer aim to disrupt this particular market by bringing, UNIFORM Charges, that in turn will bring more custom & more commission.

The other Disruptive aspect will be, Customers will know before, Pairing, just what their costs will be. Something missing currently. (pairing is the exchange you invest in by matching 2 currencies, 1 against the other, you say the yen will outstrip Dollar on a particular occasion)

In my humble opinion, This concept will make $m`s of Dollars from DAY 1. it is simply in the right place at the right time, there is nothing to compare with it.

[tradeforce] 09/2/2023 15:43

Relatively low volume.

Just wait when the crowd arrives.

I think on these boards there is quite a bit of the companies shares in sticky hands, won't take a lot to move this up rapidly IMO.

[david gruen] 09/2/2023 15:21

Looking good for that return to .5 initially.

[888icb] 09/2/2023 15:20

BLU moving well now Up 15.2% at 0.225 on volume of 26 million.

[davealders] 09/2/2023 13:25

Great recap 888icb.
I bet many here won't know anything about DTranfer.
DTransfer is the company described by Meinarrd as the 'unicorn' if it can acquire just 1% of the market.
SatoshiPay own 100% of DTransfer.
Come on Tony, give us some great news :)
Thanks

[888icb] 09/2/2023 12:54

Don’t forget Dtransfer and how important that will be to Satoshipay as per this tweet from November:
“ Pendulum
@pendulum_chain
@Satoshipay
is building
@DTransferHQ
to speed up cross-border money transfer and to make it cheaper and more transparent

It will play a major role in the
@Pendulum
ecosystem, shaking up antiquated structures that still dominate cross-border payments

Major disruption expected😎
6:35 am · 5 Nov 2022”
It is Dtransfer using Pendulum from day one of its launch that will give Dtransfer first mover advantage in this massive forex marketplace.

[jack jebb] 09/2/2023 12:26

They say sometimes it is better to travel in expectation than to arrive, and there's no doubt that there's some shareholders here, including me, who are expecting very good things in the coming weeks.

One of the big two needs to deliver, and then we can kiss goodbye to languishing at 0.2p.

The caveat is that if we only get one wishy washy update, and nothing from the other, a lot of speculative shares will be dumped on the market.

So I think by Easter we're either at 0.1p or well north of 0.5p.

Its going to be interesting, and we've all placed our bets.

The German guy that runs Pendulum is clearly a very smart fella, but in the interviews others have kindly posted of him, presenting and selling the idea of it all is not his strength. I would hope that those of a more technical persuasion are more impressed than a layman like me.

[david gruen] 09/2/2023 11:24

Do we know when the NAVs are reassessed?

[highly geared] 09/2/2023 11:14

Thanks Steve. For me, BLU is trading at nominal NAV for the investment portfolio with zero speculative upside. When Pendulum and Dynasty progress , I don’t see any reason why a £50m+ market cap will not be justified, based on a 2 year forward look on where these 2 portfolio contributors are going.

[steveberyl] 09/2/2023 11:09

Thank you H.G. Your effort is very much Appreciated.

[highly geared] 09/2/2023 10:51

….and perhaps most significantly, the recent Pendulum crowdloan:

23 December 2022

Blue Star Capital plc

("Blue Star" or the "Company")

Pendulum Completes Crowdloan

Blue Star Capital plc (AIM: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, notes the recent announcement by Pendulum, a company incubated by Blue Star's investee company SatoshiPay, that it completed its crowdloan (the "Campaign") and is now set to become a Polkadot Parachain.

Pendulum, a smart-blockchain infrastructure technology company that aims to decentralize forex and traditional finance, advises that the Campaign was the fastest parachain crowdloan in the history of the Polkadot ecosystem, reaching a hardcap of 300,000 $DOT (approximately GBP1.14 million) in approximately three minutes. The Campaign marks the highest auction hardcap since May 2022 in the Polkadot ecosystem and is seen as a demonstration of the strong support and enthusiasm for Pendulum's integration into this ecosystem.

The Company holds a 27.9 per cent. stake in SatoshiPay, and SatoshiPay has an interest of 5.5 per cent. of Pendulum's future PEN tokens .

The Board of Blue Star also notes the anticipated launch of Pendulum on the mainnet in February 2023 and looks forward to further positive news for Pendulum and SatoshiPay.

[highly geared] 09/2/2023 10:47

Dynasty update late October 2022:


TIDMBLU

RNS Number : 5588E

Blue Star Capital plc


31 October 2022

Blue Star Capital plc

("Blue Star" or the "Company")

Dynasty Investment Update

Blue Star Capital plc (AIM: BLU), the investing company with a focus on esports, payments, technology and its applications within media and gaming, provides an update in respect of its investee company, Dynasty Gaming & Media Pte Ltd ("Dynasty").

Dynasty, a leading white label, B2B gaming ecosystem provider, has today announced that it has signed a distribution agreement with Indosat Ooredoo Hutchison ("IOH"), Southeast Asia's second largest telecommunications company, with almost 100 million subscribers in Indonesia. This agreement will see Dynasty deliver Web3 Play to Earn ("P2E") games, developed by Pioneer, to IOH which IOH will actively promote to their extensive subscriber base.

On 13 October 2022, Pioneer Media Holdings Inc. (NEO:JEPG; AQSE:PNER) ("Pioneer") announced it had entered into a game publishing agreement with Dynasty. Under the publishing agreement, Pioneer has granted Dynasty an exclusive license to publish, market, promote and distribute its portfolio of games to its partners throughout southeast Asia, India, and Australia. Pioneer has announced it has a robust pipeline of games across multiple genres ready for launch in the next six to twelve months.

Indonesia is Southeast Asia's leading gaming market, with over 200 million gamers generating nearly US$2 billion in annual gaming revenues. The first P2E title, which has been localised for the Indonesian gaming market, is due to launch within three months and additional titles are planned to be released throughout 2023.

Dynasty expects similar agreements to be signed and announced during the next two quarters, with several other markets launching Pioneer's P2E tittles within 2023, under Dynasty and Pioneer's recently signed publishing agreement.

Tony Fabrizi, CEO of Blue Star Capital said that: "This significant new contract, with one of Southeast Asia's largest telcos, is further testimony to the continued progress of Dynasty as it expands its gaming ecosystem to deliver Web3 Play to Earn games. We anticipate further announcements later this year as Dynasty's extensive and growing network provides an attractive route for large corporations looking to move seamlessly into gaming."

[highly geared] 09/2/2023 10:45

Reminder of the portfolio and potential from the 28 September 2022 update:

Esports portfolio

The Company made initial investments in November 2019 of GBP900,00 in aggregate into a portfolio of six early-stage companies, investing approximately GBP150,000 into each business. At the time of making this investment the Board decided that, due to the early-stage nature of the investments and sector, a portfolio approach was most likely to prove successful. Since making this initial investment, the Company has made two smaller investments of approximately GBP115,000 in September 2020 into a new esports business called Formation Esports Investment and approximately GBP60,000 in September 2021 into Paidia Esports Inc. The Board is pleased to report that the overall performance of the esports portfolio has been strong.

Of the eight esports investments, the best performing is Dynasty Gaming & Media PTE. Ltd ("Dynasty"). The Board notes that the investment into Dynasty has been very successful and fully justifies the decision to pursue a portfolio approach. Unlike the Company's other esports investments, Dynasty is a pure B2B infrastructure business, having developed a powerful gaming and media platform ecosystem for mass market deployment. The Board believes that Dynasty's success to date in securing large contracts clearly demonstrates the inherent value in this business.

Dynasty's partners include:

-- Saudi Telecom Corporation, the largest telecom carrier in the Middle East with which it signed a 2-year SaaS contract in October 2020.

-- Maxis Bhd., Malaysia's leading telecoms operator. Initial traction has far exceeded expectations with increasing functionality being continually added. Maxis Bhd. has approximately 11 million customers.

-- New Zealand's largest telecommunications and digital services company, which enjoys a dominant market position and premium brand presence. The platform is scheduled to launch in November 2022.

-- Lets Play Live Ltd - Australia's largest tournament organiser and gaming content creators. Scheduled platform launch January 2023.

In addition, the Board understands that a number of other multi-year contracts, which are subject to confidentiality, have been signed.

In terms of new business, Dynasty has a large number of contract discussions ongoing with large global telecoms operators and tech businesses. The scale of these contracts is expected to be significantly larger than the company's existing partnership agreements and, if secured, will position Dynasty as the global leader in B2B white label gaming platforms.

As previously highlighted, Dynasty's business model has evolved and all new partnership agreements contain both fixed licence fees and managed services revenue share. While Dynasty's initial commercial model was based on collecting monthly licence fees over a minimum 24-month contract, moving forward, all agreements will see Dynasty supporting its partners with a managed service solution. Dynasty provides dedicated in-country resources, working exclusively with their partners in all areas of engagement and monetisation, to help maximise commercial outcomes. Under the new hybrid model, Dynasty enjoys a significant portion of all platform revenue generated, in addition to licence fees.

Since first investing in Dynasty, the Company has maintained its shareholding at approximately 13.7 per cent, investing in total GBP895,000. The last external valuation of Dynasty took place in April 2021 when it raised USD$5million on a post money valuation of USD$50million. Since then, Dynasty has announced a number of new contracts, developed a new, more attractive business model and confirmed significant interest from potential partners and strategic investors.

The Company is currently carrying the investment in Dynasty at the last external valuation of approximately GBP4.6million. For the reasons highlighted above, it is the Board's belief that Dynasty's valuation should have increased significantly since the company's last fundraise and should be worth considerably more than the current carrying value. Furthermore, the recent strengthening of the US dollar against sterling means the current carrying value of the Dynasty shareholding is over GBP6m based on current exchange rates.

The second significant esports investments is in Guild Esports plc ("Guild") in which the Company has invested a total amount of GBP705,000. Guild initially performed strongly and listed on the Standard Segment of the Main Market of the London Stock Exchange in October 2020 at 8p per share valuing the business at GBP41.2million. At that time the Guild investment was showing an unrealised gain to Blue Star of approximately GBP1.75million. Since its listing, Guild's share price performance has been disappointing and is currently standing at around 2.7p. In order to raise working capital, the Company has recently reduced its shareholding in Guild to approximately 22million shares, representing 4.3 per cent of Guild. At this time, based on the current share price and proceeds from disposals, the Company is around break-even on its Guild investment. However, the Board is pleased to note the positive announcements from Guild in the last few days and its share price strengthening and remain hopeful that Guild's recent stronger performance will continue.

The remaining esports investments are carried at cost and, in light of little news, for prudence, the Company will be looking into the potential write-off of most of the smaller esports investments within the next financial statements to 30 September 2022.

In summary, the existing esports portfolio has a combined cost to date of GBP2.375million and taking the proceeds raised from selling approximately 1.5 per cent of the Guild position and the current carrying values of the remaining Guild stake of approximately GBP600,000 and Dynasty (applying current exchange rates) and ignoring the remaining six other esports investments, has a combined value of approximately GBP6.70million which equates to an unrealised gain of around GBP4.35million.

Other Quoted investments

The Company's other quoted investments in NFT Investments and East Side Games are non-core and will be sold as and when an appropriate opportunity arises. They have a current carrying value of approximately GBP135,000.

Blockchain investment

The Company's second core investment is in SatoshiPay. This investment was made in increments between January 2017 and July 2017 with a total amount invested of EUR1.87million. Post these investments, the Company attempted to carry out a reverse takeover of SatoshiPay at the end of 2018. This proposed transaction was aborted due to difficult market conditions at the time. A small convertible loan of EUR200,000 to SatoshiPay was converted in February 2019 taking the Company's shareholding to 27.9 per cent of SatoshiPay's issued share capital.

In the last two years, SatoshiPay has made a number of fundamental changes to its business model, most notably:

-- Changed the focus away from its micropayments business which was the company's initial market priority. Although the technology works well, the business was too early and the market opportunity still in its infancy.

-- In early 2020, SatoshiPay announced it was refocussing on B2B cross-border money transfer through blockchain with the launch of DTransfer. This was identified as a major global market opportunity which had scope for disruption through blockchain. Since switching focus, SatoshiPay has made solid progress in building DTransfer by signing up customers and building partnerships.

-- While building DTransfer, it became clear that the blockchain infrastructure required to launch Dtransfer as a complete solution still needed refining. This encouraged SatoshiPay's management to seek out ways of providing and supporting this infrastructure, which led to the inception of Pendulum.

-- Pendulum's development started in the first half of 2021 as an open-source blockchain built on the stable and existing Substrate framework. Its objective is to establish the missing link between fiat and the DeFi ecosystems through a network of sophisticated smart contracts. Pendulum's Layer-1 infrastructure will connect DeFi to the foreign exchange market, building automated market makers (AMMs) to introduce scalable liquidity pools for fiat currencies, and create yield earning opportunities for fiat token holders.

-- Having built the first prototype of Pendulum at the end of 2021, which featured a bridge to Stellar and an AMM smart contract, Pendulum has subsequently developed a fully functional testnet and prepared a launch as a Polkadot parachain.

-- In more recent months, the Pendulum team has continued development and achieved all of its internal milestones. In addition, recent external achievements include securing a place on the Berkeley University blockchain Xcelerator program and receiving a grant from the Web3 Foundation to build a bridge (Spacewalk Bridge) between Stellar and Substrate-based parachains.

-- Most notably, a second parachain project, Amplitude, was launched by the Pendulum team in June 2022 and was successful in winning a Kusama parachain auction on 4 July 2022, achieving $1.2million in contributions. Amplitude went live on 11 August 2022 and serves as a testing ground for the future Pendulum parachain, with new features first being rolled out on Amplitude.

-- Pendulum has so far raised $5million for its further development by the private presale of future PEN tokens. The Board understands that Pendulum intends to carry out a further private presale before the listing of the token.

The Board notes that placing a value on SatoshiPay is highly subjective given the early stage nature of its business interests. In looking at SatoshiPay's valuation, the Board has taken the following key factors into account:

-- The business is, through its relationship with Pendulum, fully funded for the next year so there is no need for any equity injection into SatoshiPay.

-- SatoshiPay is now generating monthly revenues and was profitable in the year ended 31 December 2021 and is expected to be profitable in 2022.

-- It has a close relationship with a number of large crypto organisations such as Web3 Foundation, Parity and Stellar Development Foundation and a growing reputation generally in the blockchain ecosystem.

-- It has successfully executed the first private presale for Pendulum and secured approximately 5.5 per cent of the future PEN tokens for services rendered.

-- If the Pendulum network can successfully connect De-Fi to the larger foreign exchange markets, building AMMs to introduce scalable liquidity pools for fiat currencies as well as creating yield earning opportunities for fiat token holders, then Pendulum should be well placed within the De-Fi space, a market which is currently estimated to be valued at $55billion in total value locked.

-- SatoshiPay has successfully incubated the Amber AMM Project for which it has secured 5 per cent of its future tokens. Amber is a novel AMM design for low-risk, single-sided liquidity provision, significantly lower slippage and fees compared to other AMM designs.

-- It is well placed to earn fees and accumulate tokens in existing and new De-Fi projects.
-- SatoshiPay owns 100 per cent of DTransfer which remains a highly attractive opportunity.
The current valuation of SatoshiPay is based on the last external fund raise which took place in February 2019. Since then, SatoshiPay's business has changed considerably and, in the Board's opinion, SatoshiPay's prospects, while still difficult to accurately value, are significantly improved. Given these factors the Board believes the current carrying valuation for SatoshiPay of approximately GBP4.8million could significantly understate its current market value. Based on this latest valuation and the investment to date of GBP1.8million, the investment in SatoshiPay is showing an unrealised gain of approximately GBP3million.

Biometric business

Sthaler is a biometric identity and payments technology business which enables an individual to identify themselves and pay using the unique vein patterns within a finger. Its FinGo ID platform uses a biometric called VeinID which instantly recognises an individual through the unique pattern of veins inside each finger. The FinGo technology scans each person's unique vein pattern, an internal biometric that cannot be traced or copied, making FinGo the most secure and inclusive way to connect.

FinGo's technology is relevant across so many sectors and industries ranging from payments, age verification, identity and access. Sthaler are currently launching FinGo across a number of countries and sectors either directly or through partners.

Blue Star's percentage shareholding in Sthaler was approximately 0.8% at 30 September 2021 and is valued on the basis of Sthaler's last completed fundraise at approximately GBP387,000. The cost of the Sthaler investment is GBP50,000, representing an unrealised gain of GBP337,000. While the Board believes Sthaler is an excellent business with enormous potential, the small size of its shareholding means the Board are treating Sthaler as non-core.

Conclusions based on portfolio review

Based on the current carrying valuations of Dynasty, SatoshiPay, Sthaler and the market price of the quoted investments the portfolio has a current value of approximately GBP11.9million which is equivalent to an estimated NAV per share of approximately 0.24p.

For the reasons highlighted above, the Board believes there is significant scope for this figure to materially increase over the next twelve to eighteen months. Accordingly, the Board intends to focus its attention and resources on supporting its two core investee companies and does not anticipate making any new investments for the foreseeable future.

In addition, the Board intend to manage the Company with a focus on funding the business, insofar as possible, through the sale of its existing non-core investments.

The Board will cut all non-essential costs and is proposing to put in place a share option scheme on a time and performance basis. The terms of the option scheme will reflect the Directors belief in the inherent value of the two main investments. Details of the scheme will be announced later this year and will cover a maximum percentage of 5 per cent, maximum life of 3 years and proposed exercise prices of at least 0.35p per share.

Long term strategy

The Board believes the two major investments have the potential to provide significant value for shareholders and the focus will therefore be on managing the Company to maximise the prospects of achieving a successful exit of these investments within the next two years. Assuming this can be achieved the Board intends to consult with shareholders to decide on the most appropriate course of action to ensure shareholder interests are best served.

[david gruen] 09/2/2023 10:36

It's never normally that quick :-)

[tradeforce] 09/2/2023 10:35

👍
And as if by magic...

[david gruen] 09/2/2023 10:31

Chart structure and volume profile.

[tradeforce] 09/2/2023 10:28

What makes you think that?

[david gruen] 09/2/2023 09:56

Should be blu soon.

[highly geared] 08/2/2023 22:34

Market cap is tiny. Expectation alone could well take this to multiples of the current share price without the market cap being that far out of whack..