CoinShares’ Q1 Financial Results Took a Hit Amid Crypto Market Downturn

Last year’s epic crypto bull run helped crypto companies thrive, many beyond expectations. However, the current landscape is entrenched in a sluggish territory, a trend that has translated into figures for the prominent digital asset management firm, CoinShares, which announced the interim results for the first quarter of 2022.

• According to the official press release, the firm’s total revenue during the first three months of 2022 has shrunk to £27.96 million ($35 million) from the previous year’s £39.91 million ($50 million), a decrease of 42%.
• Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also slumped by more than 45% in the first quarter of the year, recording £18.7 million compared to £34.2 million a year ago.
• CoinShares’ total comprehensive income took a hit from £32.1 million in the same quarter last year to £20.2 million in Q1 2022.
• Assets under management (AUM) for the European firm as of 31st March 2022 came down to £3.07 billion, a 10% decline since 31st March 2021.
• At the end of the period, the AUM for Blockchain Global Equity Index (BLOCK Index) stood at £0.88 billion.
• Jean-Marie Mognetti, Chief Executive Officer of CoinShares commented on the Q1 results,

“We delivered resilient EBITDA of £18.7 million, all while making considerable steps to advance our long-term strategy. This includes work towards our imminent uplisting to Stockholm’s main market, significantly growing our headcount, including a new Group Head of Marketing and a dedicated team to support the Group’s enlarged footprint, and integrating our consumer platform, Napoleon.”

• CoinShares also detailed some of its operational highlights that include its long-term strategy, such as progressing plans to uplist to the Nasdaq Stockholm Main Market.
• The asset manager nearly doubled its staff base to 95 individuals in a little over two years.
• Additionally, it recently announced increasing its stake in the online banking platform – FlowBank – the following receiving a green light from the Swiss Financial Market Supervisory Authority. As reported earlier, the increased investment will focus on facilitating growing digital asset exposure for FlowBank’s clients leveraging the CoinShares platform.