Norwegian Block Exchange AS

Earnings Release • Jun 22, 2022

Norwegian Block Exchange reduces costs

Norwegian Block Exchange reduces costs

Oslo, Norway, 22 June 2022: Norwegian Block Exchange (NBX), a leading Nordic platform for cryptocurrency trading, has decided to implement cost-reducing measures to adapt to the changes in the market for cryptocurrencies and digital assets. The background is a decrease in trade volumes in cryptocurrencies in 2022, driven by political and economic uncertainty and an increase in interest rates, also described in NBX’s business update published on 16 June 2022.

“NBX has built a solid foundation of technology and products over the past years to offer efficient and safe trade of cryptocurrencies, and we have more than 80,000 registered users on our platform. We remain confident that cryptocurrencies will play an important role in the future financial industry and our daily lives. However, it is necessary to adjust our business to the dramatic changes we are currently experiencing. This means reduced costs, and for a knowledge-based company this unfortunately also affects our employees”, says Stig Aleksander Kjos-Mathisen, CEO of NBX.

NBX targets a cost reduction of 40 percent compared to the level in the fourth quarter of 2021. This has been an ongoing process over time, where cost-reducing measures have been taken in all parts of the organization. The measures will now affect employees to a larger extent. The reduction will be done through temporary lay-offs in Norway, permanent lay-offs in Latvia, and reduced use of contracted developers. In total, eight employees will be temporarily or permanently laid off. Central parts of the management teams will take voluntary, significant reductions in their own salaries. With the measures now taken, the company expects to reach the goal of a cost reduction of 40 percent, while at the same time maintaining operations as usual.

The company has previously communicated that the board and management are working together to strengthen the company’s financial situation, and in May a private placement raising NOK 15,8 million was completed. The company continues to work on this in parallel with the cost reductions. The company has over the past months launched a number of new services and is the first Nordic crypto company to offer mobile and card payment and a partnership for establishing a fund to invest in cryptocurrencies.

“The measures we now take will enable us to manage a market that might continue to be volatile in the times to come and will strengthen NBX as an attractive investment in the challenging market situation we see. With new services we also see positive development for NBX in a challenging market,” says Stig Aleksander Kjos-Mathisen, CEO of NBX.

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This stock exchange announcement was published by Torstein Thin, CFO and Master of Coin of NBX, on 22 June 2022.

Contact person:

Torstein Thinn - CFO Mail: torstein.thinn@nbx.com

Telephone: 986 44 144

Stig Kjos-Mathisen - CEO Mail: stig.aleksander.kjos-mathisen@nbx.com

Telefon: 93 28 75 72

About NBX: Truly Norwegian cryptocurrency exchange and custodian. Based in Oslo and registered with the Financial Supervisory Authority of Norway. NBX offers everyone easy and secure access to cryptocurrency, focusing on the Nordic markets, but open for customers globally.