28th April 2023 | SAINT HELIER, Jersey | CoinShares International Limited (“CoinShares” or “the Company”) (Nasdaq Stockholm: CS; US OTCQX: CNSRF), Europe's leading alternative asset manager specialising in digital assets, today published its 2022 Annual Report, providing comprehensive and detailed information on the firm, its financial performance, its strategy, corporate governance and the industry and market for the 2022 financial year. The report includes the audited financial statements for the year ending 31st December 2022. The full report can be found here. The AGM Notice can be found here.
2022 financial highlights
- Revenue of £51.3 million (2021: £80.8 million).
- Operating loss* of £20.2 million (2021: operating profit of £101.4 million).
- Total comprehensive income for the year £2.9 million (2021: £113.5 million).
- Net asset position of the Group as at 31st December 2022 of £203.7 million (December 2021: £200.0 million).
*Operating loss taken from the Group’s Alternative Statement of Comprehensive Income
2022 business overview:
- Asset Management: European net investment into crypto ETPs was mildly negative as a result of market events including Luna and FTX. 2022 saw gross revenue generated from XBT Provider of £46.0 million (2021: £78.3 million), with CoinShares Physical posting gross revenue of £2.3 million (2021: £0.9 million) with inflows roughly offsetting the negative revenue impact of price over the year. The Group’s BLOCK Index generated fees of £1.9 million (2021: £1.2 million). In 2023, we believe that European regulatory clarity around both ETPs and underlying crypto assets will help a larger proportion of professional investors to invest in the opportunity that strengthening fundamentals and lower prices present.
- Capital Markets: The total notional traded by CoinShares Capital Markets in 2022 reduced to $15.0 billion (2021: $32 billion) as market participants withdrew from the market and black swan events quelled investor appetites. Q2 and Q4 Capital Markets performance was overshadowed by the significant exceptional items incurred on disposal of the Group’s US Terra holding and amounts held on FTX, which stood at £17.9 million and £26.0 million respectively. Gains and income generated by the Capital Markets team excluding these two items was £26.5 million (2021: £61.2 million).
- Consumer Solutions: FTX’s bankruptcy had a significant impact on the Group’s capacity to deploy HAL.trading in Europe. Consequently, in consultation with CoinShares France’s senior management, it was decided to terminate CoinShares’ consumer activity. (to refocus our energy on our core strategy)
- Principal Investments: Our Principal Investments portfolio suffered from the turbulence of 2022 and we experienced several write-downs with certain invested companies ceasing trading altogether. Following the events of 2022, we believe that institutional focused, regulated players will benefit the most in 2023. This view aligns with our investments in Komainu, the regulated custodian, which successfully raised at the end of Q4 2022 and announced a new CEO. Additionaly It is aligned with our FlowBank investment, the fully licensed Swiss bank, which has experienced a consistent 30-40% growth rate in new clients per quarter since Q1 2021.
- Strategy
CoinShares' 2022 Annual Report highlights the company's focus on its core identity as an asset manager with 10 years of expertise in the digital asset industry. With clarified objectives and by charting a new path, the 2023 strategy is designed to consolidate CoinShares' position as Europe's leading alternative asset manager specialised in digital assets.
To cater to investors seeking sophisticated investment alternatives, CoinShares plans to expand its product offering and establish an active asset management business with several strategies open to institutional external allocators. For its passive asset management franchise, the company aims to continue to increase its European market share of gross inflows, targeting a 30% share this year doubling up versus 2021.
ABOUT COINSHARES
CoinShares is the leading European digital asset manager that delivers a broad range of financial services across investment management, trading, securities, and consumer products to a wide array of clients that includes corporations, financial institutions, and individuals. The Group is headquartered in Jersey, with a presence in France, Sweden, 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 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 | ir@coinshares.com .
PRESS CONTACT
CoinShares
Benoît Pellevoizin
bpellevoizin@coinshares.com
H/Advisors Maitland
Freddie Barber / Alasdair Todd
coinshares@h-advisors.global
+44 (0) 207 379 5151
