Crossgate Capital combines the objective of long-term growth with potential staking distributions
New Zealand-based digital-asset investment company Crossgate Capital Limited today announced the introduction of staking for eligible digital assets in the diversified portfolio it has managed for shareholders since 2019.
Under the company's updated approach, eligible portfolio assets may be committed to help secure their blockchain networks, a process known as staking, to earn rewards. Where rewards are received, the Crossgate Capital Board may resolve to distribute some or all of that staking income to shareholders. The change is reflected in the company's Product Disclosure Statement.
The move builds on Crossgate Capital's original investment objective, long-term growth in the value of its diversified portfolio, by adding a secondary, complementary potential source of return. Capital growth remains the company's primary objective. Distributions, if declared, are funded solely from staking rewards actually received after fees and applicable tax. Distributions are declared at the Board's discretion, and are variable and not guaranteed.
“Digital assets are moving into the mainstream," says Scott Lester, Director, Crossgate Capital. "Kiwis want exposure to the asset class, but not the DIY headaches, the exchanges, the seed phrases, the hardware wallets.
"We consider staking a more active way to hold digital assets on investors’ behalf because we have always been about giving investors a simple, professionally managed route into digital assets, packaged inside a share structure they already understand.
"Adding staking, done through institutional infrastructure, extends that same simple proposition. Long-term capital growth remains the primary objective. Staking gives us a way, where the Board resolves to do so, to also pay income to shareholders," Lester says.
HOW IT WORKS
Staking will be undertaken through BitGo's institutional storage and staking platform, the same provider Crossgate Capital already uses to hold its digital assets. There are risks associated with staking, as explained in the Product Disclosure Statement. The Board determines whether, when and how much of each eligible holding is staked, taking into account liquidity needs and the lock-up periods staking involves.
Lester says that for investors, the key point is simple. "You hold the shares. We put the digital assets to work. There are no wallets to manage, no validators to run, no lock-up periods for investors to manage themselves. The complexity (validator selection, key security, lock-up management) sits with us.
"Investors get exposure to a professionally managed, diversified digital-asset portfolio inside a familiar New Zealand share structure, with the added potential for distributions from staking.”
TWIN OBJECTIVES
Crossgate Capital's proposition to investors is designed around two potential sources of return. The first objective is long-term capital growth from a curated portfolio of digital assets focused on smart-contract platforms, blockchain infrastructure, artificial intelligence, decentralised finance, financial services and more. The second is the potential for distributions to shareholders funded from staking rewards, where the Board resolves to distribute them.
“Crossgate has built a diversified, long-term digital-asset portfolio for New Zealand investors since 2019," says Lester. "Staking is the natural next step. The market has moved on and some investors are now looking for more from the assets they hold. If you are going to hold these assets for the long term, and the protocol itself rewards holders who help secure it, why would you leave them sitting idle?”
The company's Product Disclosure Statement sets out the staking arrangements, the risks involved and the way any potential distributions would work.
ENDS.
About Crossgate Capital
Crossgate Capital Limited is a New Zealand-based digital-asset investment company that has managed a diversified portfolio of digital assets on behalf of shareholders since 2019. Its portfolio includes exposure to foundational digital assets such as Bitcoin and Ethereum, alongside selected assets across sectors including payments, decentralised finance, data, artificial intelligence, blockchain infrastructure and more. Its primary objective is long-term growth in the value of the underlying portfolio, complemented by the potential for distributions to shareholders funded from staking rewards where eligible assets are staked.
Investments in digital assets are volatile and carry significant risk. Staking may not occur at all; not all assets support or are available for staking; staking rewards are variable and not guaranteed; and no distribution of any kind is promised or guaranteed. Past performance is not a reliable indicator of future performance. This media release is general information only and does not constitute financial advice; it does not take into account any person's objectives, financial situation or needs.
