CoinShares Reports Q2 Profit of $513.1 Million
Date: 2024-08-08 Author: Henry Casey Categories: BUSINESS
Crypto asset manager CoinShares reported a profit after tax of nearly £404 million ($513.1 million) for the second quarter, up significantly from just £10 million in the same period last year.
CoinShares’ total assets under management nearly doubled, rising from $2.7 billion to $5.3 billion, according to its earnings report on Tuesday. The growth was driven by a doubling of asset management revenue to $28.45 million, helped by the acquisition of ETF unit Valkyrie, based in Nashville, Tennessee. The deal gave CoinShares access to the U.S. exchange-traded products market.
However, CoinShares also reported a $481.4 million loss due to a decline in the fair value of digital assets. The decline comes as the cryptocurrency market has fallen after its record high in the first quarter. In particular, the largest cryptocurrency, Bitcoin (BTC), fell 12% in the second quarter, its biggest drop since Q4 2022.
After accounting for this writedown, CoinShares' total revenue for the quarter was $32.6 million, up nearly fivefold from $6.3 million in Q2 2023.
CoinShares shares, traded on the Stockholm Exchange, rose 8.5% on the day to 56.60 Swedish kronor ($5.43).
CoinShares CEO Jean-Marie Mognetti noted that despite the volatility of the cryptocurrency market, the company continues to demonstrate sustainable growth and adapt to changing conditions. He emphasized that business expansion through acquisitions and increasing asset management revenues are key factors in CoinShares' success.
CoinShares, one of the leading crypto asset management companies, continues to strengthen its position in the market despite difficult market conditions. The increase in assets under management and the successful integration of new divisions allow the company to maintain high revenue levels and ensure sustainable growth.
