CoinShares has expanded its crypto operations from the European market to the United States through the recent acquisition of Valkyrie’s spot Bitcoin ETF.
Leading European-based investment company focused on digital assets, CoinShares International Ltd announced its second quarter 2024 earnings results on Tuesday, August 6. According to the announcement, CoinShares reported a revenue of about £22.5 million in the second quarter, compared to £10.7 million registered in the same time last year, thus representing a 110 percent spike year-over-year.
The company registered a comprehensive income of about £25.8 million, up from £5.3 million in the second quarter of 2023, thus representing a change of over 387 percent YoY.
According to Jean-Marie Mognetti, the Chief Executive Officer of CoinShares, the impressive performance in the second quarter was largely attributed to the notable rise in crypto prices led by Bitcoin.
Consequently, Mognetti highlighted that the company’s shareholders significantly benefited from palpable gains and a new dividend policy.
“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 of our restructuring and streamlining initiatives over the past two years. This strategy continues to yield results in both profitability and growth,” Mognetti noted.
Q2 2024 Crucial Highlights for CoinShares
During the second quarter, CoinShares underwent several operations to ensure a competitive edge in the market. For instance, CoinShares made a strategic acquisition of Valkyrie business operations including its spot Bitcoin ETF BRRR.
Despite the crypto consolidation in the second quarter, CoinShares announced that its Bitcoin mining operations, through the Bitcoin mining ETF $WGMI, continued to attract more cash inflows.
During the second quarter, the CoinShares Engineering and Quant team launched the advanced MATRIX trading and risk platform, to further streamline the Capital Markets and Hedge Fund Solutions businesses.
Most importantly, CoinShares announced a successful completion of the sale of its £28.7 million FTX claims, thus representing a 116 percent recovery rate. Additionally, the material write-down in the Group’s Principal Investments portfolio due to the bankruptcy of Swiss digital bank FlowBank.
Consequently, the company was able to pay its long-standing shareholders a special dividend during the second quarter.
Market Impact
Following the announcement of the impressive second quarter’s financial highlights, CS shares gained nearly 2 percent on Tuesday to trade at about Kr 54. As a result, CS shares have gained over 30 percent year to date, largely fueled by the notable adoption of digital assets by institutional investors around the world.
Worth noting that Valkyrie’s spot Bitcoin ETF, BRRR has a net asset under management of about $471 million. The continued mainstream adoption of crypto assets will help CoinShares further grow exponentially in the long term.
next