May 23, 2024
CoinShares Achieves Q1 Revenue Record Boosted by Markets
Latest Cryptocurrency News

CoinShares Achieves Q1 Revenue Record Boosted by Markets

European asset manager CoinShares achieved remarkable results in the first quarter of 2024, attributed to market recovery following the launch of Bitcoin exchange-traded funds (ETFs). The company disclosed revenue of £19.5 million ($24.5 million) for the period, marking a substantial 216% surge compared to the same quarter in 2023. Additionally, gains and other income amounted to £24.4 million ($30.6 million).

Strong Financial Metrics and Business Segments

CoinShares witnessed impressive growth in its earnings before interest, taxes, depreciation, and amortization (EBITDA), which soared to £34.2 million ($43 million) from £7 million ($8.8 million) in the previous year, reflecting a fourfold increase. Richard Nash, CoinShares’ chief financial officer, highlighted an EBITDA margin of 78% for the quarter, approaching levels observed in 2021. Nash also delineated CoinShares’ revenue streams, with approximately 45% generated from its asset management business, 40% from capital markets, and the remaining 15% from its principal investment portfolio.

Source: CoinShares

Strategic Acquisition and Asset Growth

The Company executed a pivotal move by acquiring Valkyrie Funds on January 12, following approval from the United States Securities and Exchange Commission for Bitcoin ETFs. This acquisition encompassed sponsor rights to various products, including Valkyrie’s spot Bitcoin ETF and investment advisory business. The completion of the deal on March 12 added approximately £1.6 million ($2 million) of goodwill to CoinShares’ balance sheet, representing intangible assets.

The company’s total assets under management (AUM) as of March 31 surged to £4.77 billion ($6 billion), reflecting a substantial 58% increase from the end of 2023. CoinShares attributed this growth to favorable industry performance in Q1 2024, coupled with the Valkyrie acquisition.

Future Outlook and Strategic Direction

Jean-Marie Mognetti, CEO of CoinShares, emphasized the significance of Valkyrie’s acquisition in aligning with the company’s vision to emerge as a prominent global investment entity specializing in digital assets. Mognetti highlighted the strategic importance of the U.S. market, accounting for 50% of global assets under management, and reiterated CoinShares’ commitment to capitalizing on growth opportunities in this market.

As CoinShares continues its trajectory of growth and expansion, the strategic acquisition and robust financial performance position the company for sustained success in the evolving landscape of digital asset investment.

Image by jcomp on Freepik

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