Smartphone maker Nothing ventures into crypto, posts £43m loss

London-based Nothing has made its first foray into the crypto market, with the smartphone maker reporting a £43 million loss.

The company’s recently published accounts show that it holds £13,000 worth of crypto assets. However, it is not clear which coins these are or what the reasoning behind the investment was.

Nothing, founded by Carl Pei – who previously founded Chinese electronics company OnePlus – released its first smartphone in 2022, hoping to compete with the likes of Apple and Samsung.

The electronics startup was valued at $1 billion in June 2023 following a $96 million (£73 million) funding round that also included Google Ventures, EQT and electronic band Swedish House Mafia.

The latest accounts, which cover the year ending 31 December 2022, show that while turnover rose significantly from £3m in 2021 to £51.6m, selling, administration and marketing costs rose dramatically.

VKTN has contacted Nothing for comment.

Nothing was founded in 2020. After securing initial funding of around £17 million across two rounds, the company launched its first product: wireless earbuds in July 2021.

Investors in Nothing include former Apple executive Tony Fadell, Twitch co-founder Kevin Lin and Reddit CEO Steve Huffman

Since then, the company has released three smartphones, the most recent of which is the Nothing Phone 2a, a slimmed-down, cheaper version of its second phone.

The Nothing Phone 2a sold more than 100,000 units, according to the Evening standard.

Read more: Everything you need to know about Nothing, the British smartphone maker taking on Apple