Annual financial report (January – December 2020)
The plan for the distribution of financial flows for the first half of 2020 was formed according to the actual company's profitability in 2019 for each of the investment areas. Although profit in the area venture capital investments for 2019 was $ 273,500, its share in the portfolio was reduced to decrease risks.
The company's financial performance in January and February was close to the target. The strategy was chosen correctly. In March, the whole world was swept by a pandemic, and after it the global financial crisis. Such force majeure ruined all plans and negatively affected the company's performance. The most problematic areas during this period were lending activity and transactions with securities. The company's management made an important strategic decision to liquidate some of the unprofitable assets and invest about 30% of the company's entire fund in cryptocurrencies. At that time, prices for cryptocurrencies were at their lows, and the company's analysts predicted an increase in the value of bitcoin immediately after the halving of this cryptocurrency occurs in May. It was a correct and timely decision. Changes in the company's financial strategy required significant adjustments to the plans.
A difficult "turbulent" period lasted until the end of May. Then the situation stabilized. The market has become more predictable. In June, the company's analysts made an in-depth analysis of the current financial situation, identified the most promising sectors for investment, and made a plan for the distribution of financial flows for the second half of 2020.
Summer and the first half of autumn were generally calm. The cryptocurrency showed steady, smooth growth, and the company's indicators were in line with the plan. The bitcoin "bullish rally" that has begun in October exceeded all expectations and allowed the company to strengthen its position. Cryptocurrencies brought in 478.77% of profits - the largest indicator of all investment areas. In total, the company received 253.16% profit in 2020.
We plan to continue closely monitoring the behavior of cryptocurrencies in 2021, as well as look for new opportunities for profitable investments and risk diversification.Download PDF file