CoinShares Announces Q2 2024 Results
6th August 2024 | SAINT HELIER, Jersey | CoinShares International Limited (“CoinShares” or “the Group”) (Nasdaq Stockholm: CS; US OTCQX: CNSRF), the leading European investment company specialising in digital assets, has today published its results for the quarter ending 30th June 2024.
Jean-Marie Mognetti, Chief Executive Officer of CoinShares said:
"In the second quarter of 2024, CoinShares built upon the strong momentum established in Q1. This continued performance in Q2 demonstrates that our Q1 was not an outlier data point, but the result of continued efforts. Our consistency underscores the benefits from our restructuring and streamlining initiatives over the past two years. This strategy continues to yield results in both profitability and growth. Our strong financial performance has enabled a new dividend policy, delivering tangible shareholder value on a quarterly basis. The recent special dividend following the disposal of our FTX claim further underscores our commitment to this goal. Simultaneously, we're driving growth by expanding in the US and enhancing our European distribution. CoinShares' balanced strategy aims to establish it as a unique and attractive long-term investment in the crypto listed market, while strengthening its position as a leader in digital assets."
Q2 2024 financial highlights
- Revenue for Q2 2024 of £22.5 million (Q2 2023: £10.7 million)
- Gains and other income for Q2 2024 of £15.2 million (Q2 2023: £8.2 million)
- Total comprehensive income for Q2 2024 of £25.8 million (Q2 2023: £5.3 million)
- Adjusted EBITDA for Q2 2024 of £26.6 million (Q2 2023: £11.4 million)
Q2 2024 operational highlights
- Asset Management: For CoinShares' asset management business, a relatively quieter quarter allowed the Group to consolidate its leadership position in Europe, with its European Physical ETP platform recording its third-best quarter in terms of net flows. In the United States, we focused on product development and marketing initiatives for our recently acquired Valkyrie business, with our spot Bitcoin ETF $BRRR and pure-play Bitcoin mining ETF $WGMI continuing to attract net inflows despite the industry-wide slowdown. Across both regions, our strategy of diversifying our product suite and strengthening our brand presence has positioned us well to navigate the evolving digital asset landscape.
- Capital Markets & Hedge Fund Solutions: CoinShares' Capital Markets division adeptly navigated the market dynamics of the second quarter, capturing opportunities despite non-trending conditions that featured offsetting events like the Iran-Israel conflict and anticipation of U.S. spot Ethereum ETP listings. While the Hedge Fund Solutions division's short volatility strategies met risk tolerances but did not outperform the underlying assets, the firm remains confident in the long-term potential given declining macro risks and the forthcoming spot Ethereum ETPs. Importantly, the CoinShares Engineering and Quant team delivered the advanced MATRIX trading and risk platform, which is poised to drive the next phase of growth and sophistication across the Capital Markets and Hedge Fund Solutions businesses.
- FTX Claim Recovery: At the end of June 24 the Group announced the successful completion of the sale of its FTX claim, achieving a recovery rate of 116% net of broker fees, translating to a return of £28.7 million.
- Principal Investments: The quarter saw a material write-down in the Group’s Principal Investments portfolio due to the bankruptcy of Swiss digital bank FlowBank SA, which it has elected to fully impair. The remaining key investments in CoinShares’ portfolio include its long-standing holding in Komainu and its position in WAO Holdings following their merger, which has already resulted in a cash distribution to the Group and shows promising profitability exceeding targets. With the disposal of our 3iQ holding in Q1 realising a gain of £2.3 million, the Group remains focused on prudently managing and optimising its principal investment activities.
- Special Dividend: Earlier this year, CoinShares announced that its Board of Directors voted to amend the dividend policy and commence shareholder distributions. In light of the recent FTX claim recovery, the Board has now decided to pay a special dividend, recognising the longstanding trust of shareholders.
Full details of the Q2 results, inclusive of financial information on each of the Group’s business units, are included within the full report, available here.
Download the Swedish Executive Summary here.
ABOUT COINSHARES
CoinShares is the leading European investment company specialising in digital assets, that delivers a broad range of financial services across investment management, trading and securities to a wide array of clients that includes corporations, financial institutions and individuals. Focusing on crypto since 2013, the firm is headquartered in Jersey, with offices in France, Sweden, Switzerland, the UK and the US. CoinShares is regulated in Jersey by the Jersey Financial Services Commission, in France by the Autorité des marchés financiers, and in the US by the Securities and Exchange Commission, National Futures Association and Financial Industry Regulatory Authority. CoinShares is publicly listed on the Nasdaq Stockholm under the ticker CS and the OTCQX under the ticker CNSRF.
For more information on CoinShares, please visit: https://coinshares.com
Company | +44 (0)1534 513 100 | enquiries@coinshares.com
Investor Relations | +44 (0)1534 513 100 | enquiries@coinshares.com
This information is information that CoinShares International Limited (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act.
The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on August 6, 2024.
PRESS CONTACT
CoinShares
Benoît Pellevoizin
bpellevoizin@coinshares.com
M Group Strategic Communications
Peter Padovano
press@coinshares.com
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