Online Blockchain loss deepens after 'awful' year for crypto

Online Blockchain's shares slipped on Wednesday after it reported that its interim loss widened following an "awful" 12 months for cryptocurrencies.

The blockchain research and development company recorded a loss before tax of £0.3m for the six-month period ended 31 December, an increase from the £7,000 loss recorded in the same period the year before, as revenue dropped from £32,000 to £26,000.

The AIM traded company had cash and cash equivalents of £0.4m at the end of 2018, up from nil at the same point the year before.

Clement Chambers, chief executive of Online Blockchain, said: "Cryptocurrencies and tokens have had an awful last 12 months and many companies have gone to the wall or cut dramatically back, because their business models relied on the value of coins rather than their use. Our developments are all based on use rather than the values of coins and this, we believe, is the key to producing Blockchain products with longevity."

Chambers said the products Online Blockchain has been developing will shortly be in test and generating revenue, with the board "excited" in their belief that the products will generate material revenue before the end of the year as the company shifts into its product marketing phase.

"The first of these new products are in test with the initial test community as I write, and this group will be widened in the coming weeks. The second products will follow shortly in the same way. This will mean that in weeks OBC will not only have four listed Crytpo-currencies but two live Blockchain products that we hope may quickly begin to generate some initial revenues," said Chambers.

Online Blockchain's shares were down 7.09% at 20.44p at 1135 GMT.