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CoinShares Reports Impressive First Quarter Financial Results
CoinShares, a prominent EU-based crypto investment firm, recently released its earnings report for the first quarter of 2024, showcasing remarkable financial performance. The company reported a total revenue, gains, and other income of $55.2 million, marking a substantial 216% year-over-year increase. Additionally, CoinShares disclosed a comprehensive income of $42.9 million for the first quarter, representing an elevenfold rise compared to the previous year.
The earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at $43.0 million, with an adjusted earnings per share (EPS) of $0.63. CoinShares also revealed that it held a significant amount of crypto assets, amounting to $4.0 billion. This portfolio included $2.3 billion in Bitcoin (BTC), $1.6 billion in Ethereum (ETH), and $35 million in other cryptocurrencies.
Record-breaking Performance in the First Quarter
CoinShares lauded the first quarter as its “strongest quarter ever,” surpassing all previous quarters since 2021 in various aspects. The company highlighted favorable market conditions, such as the introduction of spot Bitcoin ETFs in the US, which CEO Jean-Marie Mognetti described as a validation of CoinShares’ investment thesis and vision. However, Mognetti acknowledged the competitive landscape, particularly against established US spot Bitcoin ETF issuers like BlackRock and Fidelity.
The acquisition of Valkyrie Investment’s US-based ETF business was also emphasized, with the Valkyrie Bitcoin Futures Leveraged Strategy ETF (BTFX) generating substantial net inflows. CoinShares underscored its focus on breaking even on its spot Bitcoin ETF while driving profits from other product offerings.
European Expansion and Product Performance
CoinShares provided insights into its European operations, including the performance of CoinShares Digital Securities and the CoinShares Physical suite of ETPs. While the firm reported outflows from CoinShares Physical Bitcoin (BITC) due to hedge fund activities, inflows into other crypto products, especially Ethereum, Solana, and Polkadot, were notable.
The XBT Provider, CoinShares’ Nordic-centric crypto ETP, maintained significant assets under management at $3.6 billion, experiencing reduced losses compared to the previous year. Despite the optimistic outlook, the company anticipates further losses if the current crypto bull market persists.
Additionally, CoinShares highlighted the success of its BLOCK Index, which offers exposure to listed blockchain companies and saw impressive growth in assets under management. The Index returned 12.4% and reached $877.3 million in AUM, underscoring CoinShares’ diversification strategy and market resilience.
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