Our portfolio doesn't sit idle
Learn how Crossgate Capital stakes eligible crypto assets to earn network rewards, which may fund distributions to shareholders when declared by the Board.
Rewards and distributions are variable and not guaranteed.
What is staking?
Some blockchain networks rely on participants to help confirm transactions and keep the network secure. Rather than using the energy-intensive mining associated with Bitcoin, proof-of-stake networks (such as Ethereum, Cardano and Solana) are secured by participants who commit, or 'stake', their own crypto assets to support this process. In return, the network itself pays those participants rewards.
Staking can be thought of as putting assets the company already owns to work. With Crossgate Capital, your investment combines exposure to a professionally managed portfolio with the potential for distributions from staking rewards. You hold the shares; we manage the portfolio and put eligible assets to work on your behalf.
Why we stake?
Most investors want two things from their portfolio: the potential for long-term capital growth, and income along the way. For some investors they are only offered the first — the potential for growth in value — but not the second. Crossgate Capital provides both.
Crossgate has built a diversified, long-term digital-asset portfolio for New Zealand investors since 2019. We consider simply holding crypto assets is no longer good enough. The market has moved on: investors today expect a company to put eligible assets to work, not warehouse them. 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?
For investors, the appeal is straightforward: exposure to the growth potential of a diversified crypto portfolio, held in institutional storage, with the added prospect of distributions funded from staking rewards.
Two potential sources of return
Growth potential
Crossgate Capital's primary objective has always been to deliver long-term growth in the value of the portfolio, reflected in the Company's Share price. Your investment provides diversified exposure to a carefully selected portfolio of crypto assets.
The Board actively determines portfolio weightings with the goal of ensuring exposure remains disciplined rather than reactive.
As the underlying digital asset market matures, the intention is that long-term growth in these assets is reflected in the value of your shareholding.
Distribution potential
Staking gives eligible assets in the portfolio another way to contribute to your investment. Alongside their potential for long-term growth, they can earn network rewards that help fund shareholder distributions.
After applicable fees and taxes, these rewards can be distributed to shareholders, generally as additional Class A Shares through a scrip dividend. This increases the number of shares you hold without requiring a further cash investment. The Board may instead choose to pay all or part of a distribution in cash.
We take care of the Company’s tax payments and any required withholding, so any distributions you receive are net of applicable tax. We also provide an annual tax certificate for your records.
How we stake
1.
ASSETS THAT WORK, NOT SIT
Held crypto normally just sits in storage, hoping the price rises. Staking puts eligible assets to work — earning network rewards paid by the blockchain itself — while they remain securely stored.
2.
WE MANAGE THE COMPLEXITY
Staking directly requires specialist infrastructure, wallets, validators and constant monitoring. Investors in Crossgate get access through a single New Zealand-managed company — no wallets, no exchanges, no technical setup.
3.
INSTITUTIONAL STORAGE
Every eligible asset is staked exclusively through BitGo's institutional-grade storage and staking platform. Private keys remain within BitGo at all times — assets are not transferred to third parties.
4.
REWARDS THAT MAY FUND DISTRIBUTIONS
Where staking occurs, network rewards are received and recognised as income on receipt. Where declared by the Board, Staking Income may be distributed.
Understanding the risks
Staking is a considered addition to our approach, but it does introduce specific risks investors should understand.
Managing these risks requires specialist technical knowledge and infrastructure that most investors simply don't have access to. That is precisely why Crossgate Capital accesses staking exclusively through BitGo's institutional-grade storage and staking platform.
Investors should read the Product Disclosure Statement for further information.