NAGA Group (ETR: N4G), which operates a social trading platform and ventured into crypto and payments, has secured a new license from the regulator in Seychelles. Announced on Wednesday, the license will help the group to accelerate its global presence.
“The license from Seychelles offers a fully regulated environment for our business outside Europe, it will enable us to strengthen banking and payment relationships and unlock significance for our B2B segment,” said NAGA’s Founder and CEO, Benjamin Bilski.
“We have been working for several months on this license and are happy to get it operational in Q4.”
NAGA originally operated with a German license and gained a crypto license from Estonia previously this year.
Crypto Ambitions
The Germany-headquartered group entered the crypto industry earlier this year with the launch of a cryptocurrency exchange . Now, it is pushing to expand its crypto offerings.
NAGAX, the crypto arm of NAGA Group, has signed a letter of intent with Guide Investimentos, a FOSUN group-owned Brazilian digital asset management platform, for establishing a joint venture. The two are planning to launch a crypto trading platform in Brazil.
Bilski is bullish on entering the Latin American market and said: “The Brazilian market for digital products is growing rapidly.”
Operational Efficacy
NAGA witnessed excellent demand growth for its services that, in turn, pushed its revenue higher. Its revenue for the first quarter of Q1 2022 jumped by 63 percent to touch EUR 18 million. In addition, the EBITDA jumped by 66 percent.
Now, the group is focused on operational efficiency as its monthly costs were brought down by 30 percent. Moreover, the group revealed that its revenue in August and September came in at average levels for the first half of 2022.
“We keep improving our cost. We are not where we want to be yet, however it's promising for us to see that we can maintain a strong topline growth and operate the business from its own cash flow,” Bilski added.
Bullish Investors
The latest updates from the company triggered a bullish sentiment among investors which is reflected in the publicly traded stock price. Stock prices of the NAGA Group jumped 16 percent and closed at EUR 1.35 a piece at Wednesday’s market closure.
However, the share price still needs to gain significantly to cover the price drop over months.
“We must admit that this year has been very challenging for us. From unexpected accounting changes to unprecedented pressure on the stock market which has affected our share price and valuations significantly, to investing and launching products such as NAGAX in the worst possible market conditions for the crypto market,” said Bilski.
