Vault Ventures (LSE:VULT) announced it has written down the carrying value of a loan of approximately £2.15m advanced to its Dubai subsidiary, Web 3 Virtual Vault DMCC (VV), after trading and investment in crypto assets led to significant losses.
The Dubai vehicle, which was established to hold digital asset investments including Ethereum (ETH), is non-core to Vault Ventures' quantum-focused technology strategy, and the board says the write-down does not affect the group's short-term cash position or its ability to continue as a going concern.
The company said the Dubai licence was not renewed, and discussions are ongoing regarding residual assets held within the structure and the possibility of future recoveries.
Management is evaluating options to bring the position to an orderly conclusion, potentially including a wind-up process and distribution of any remaining assets. The board said it had adopted a conservative accounting treatment for VV given the uncertain position and the current situation in the Middle East.
Vault Ventures said the Dubai operations are operationally separate from its quantum activities, and the adjustment is not expected to impede development of its core growth strategy.
