CoinShares, a leading European investment company, has announced impressive financial results for the second quarter of 2024. The company’s revenue more than doubled from the same period in 2023, with a recorded revenue of £22.5 million ($28.5 million) in Q2 2024, representing a 110% year-over-year growth. After paying taxes, CoinShares’ operations generated profits of £403.9 million (over $510 million), a significant increase from the £10 million ($12.7 million) recorded in Q2 2023. One of the contributing factors to CoinShares’ financial growth was its claims on FTX bankruptcy proceedings, which resulted in a recovery rate of 116% and a return of £28.8 million ($36.7 million) after the sale.
Another significant factor in CoinShares’ financial success last quarter was the acquisition of rival asset manager Valkyrie Funds. This acquisition led to an increase in exchange-traded products and management fees for the company. CoinShares focused on product development and marketing initiatives for the Valkyrie spot Bitcoin exchange-traded fund (ETF), BRRR, and the Bitcoin mining ETF, WGMI. Despite market fluctuations, these initiatives saw continuous net inflows during the quarter.
In response to the increased gains and total comprehensive income in Q2, CoinShares’ Board of Directors approved a policy amendment to allow shareholders to receive special dividends as a token of appreciation for their trust in the business. CEO Jean-Marie Mognetti expressed pride in the company’s financial performance and emphasized the commitment to delivering shareholder value through their new dividend policy. CoinShares is also focusing on expanding in the US and enhancing their European distribution to drive further growth.
Despite the remarkable profits in Q2, CoinShares also experienced some losses. The decline in crypto prices had a negative impact on the company’s principal investments, resulting in a reduction of year-to-date gains to £1.8 million ($2.29 million). Additionally, CoinShares had to write down its investment in the neobank FlowBank after it was declared bankrupt by the Swiss Financial Market Supervisory Authority. This decision led to a loss of £21.8 million ($27.6 million) for the firm.
CoinShares’ strong financial performance in Q2 2024 demonstrates the company’s resilience and ability to navigate challenging market conditions. Despite facing some setbacks, the company remains focused on growth strategies and delivering value to its shareholders.
Leave a Reply