7th November 2023 | SAINT HELIER, Jersey | CoinShares International Limited (“CoinShares'' or “the Company”) (Nasdaq Stockholm: CS; US OTCQX: CNSRF), the leading European alternative asset manager specialising in digital assets, has today published its results for the quarter ending 30th September 2023.
Jean-Marie Mognetti, Chief Executive Officer of CoinShares said:
“Recent developments in the digital asset sector confirm our original conviction that crypto will be integrated into institutional frameworks and that regulatory oversight is critical to this. The convergence of TradFi and digital asset systems has accelerated leading to an increased price action and the appearance of decoupling signals between Bitcoin and leading equity indices.
We continued to execute on our strategy and delivered combined revenue, gains and income of £16.7 million in Q3. Profitability has been a core focus for CoinShares and we achieved Adjusted EBITDA of £9.9 million in the quarter, with an Adjusted Ebitda margin of 59%.”
Q3 2023 financial highlights
- Q3 revenue and gains and other income of £16.7 million (Q3 2022: £14.7 million - excluding exceptional loss relating to TerraUSD)
- Q3 adjusted EBITDA of £9.9 million (Q3 2022: £6.4 million)
- Total comprehensive income for Q3 2023 of £14.4 million (Q3 2022: £20.0 million)
Q3 2023 operational highlights
- In Q3, Europe's crypto exchange traded products (ETPs) experienced outflows due to stagnant market sentiment and the end of certain arbitrage opportunities for institutional players. CoinShares Physical had its lowest quarter for flows since inception, with net inflows of $6.7 million, of which its Bitcoin product saw $3.8 million of net outflows. In contrast, its altcoin products gained $10.5 million in inflows. After launching a Direct-to-Consumer campaign in Sweden for the XBT Provider platform, there was a significant increase in website sessions and purchasing intent, although the exact ROI remains hard to quantify. CoinShares remains a leading player in the European crypto ETP market, with 50% of market share. Despite challenges, our asset management business generated £10.5 million in Q3 revenues.
- In the Capital Markets segment, we saw a continued focus on building a strong infrastructure for CoinShares’ staking and lending operations. With crypto exchanges moving away from holding client funds, we’ve supported this transition, initiating steps in 2023 to reduce counterparty risk. CoinShares' main emphasis in its daily trading activities was on CME futures trading strategies, showing resilience despite challenges from low volatility and reduced spot volumes. Our Capital Markets business reported revenues of £9.3 million in Q3.
- In September, we officially launched our Hedge Fund Solutions initiative, starting discussions with external LPs across Asia, Europe, and notably, the U.S. With this new business, we can now tap into the world's largest asset management market. This move enhances our holistic approach which allows clients to tailor their portfolio based on their risk preferences. By the end of Q3, our initial strategies were operational and our team is preparing for external contributions. We are excited and optimistic about the strategies and plan to introduce more in the future.
ENDS
For the full CoinShares Q3 2023 report, click this link.
ABOUT COINSHARES
CoinShares is the leading European alternative asset manager 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, 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 | enquiries@coinshares.com
This information is information that CoinShares International Limited is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information in this press release has been published through the agency of the contact persons set out below, at 7:00 am CET on 7th November 2023.
PRESS CONTACT
CoinShares
Benoît Pellevoizin
bpellevoizin@coinshares.com
H/Advisors Maitland
Freddie Barber
coinshares@h-advisors.global
+44 (0) 207 379 5151
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