CoinShares, a prominent European investment company, recently announced impressive financial results for the second quarter of 2024. The company’s revenue more than doubled compared to the same period in 2023. According to the earnings report, CoinShares achieved revenue of £22.5 million ($28.5 million) in Q2 2024, exhibiting a remarkable 110% year-over-year growth from the £10.7 million ($13.5 million) recorded in Q2 2023. After accounting for taxes, CoinShares’ operations generated profits amounting to £403.9 million (over $510 million), a significant increase from the £10 million ($12.7 million) in the same quarter last year.
The substantial financial growth experienced by CoinShares in the last quarter can be attributed to several key factors. One major contributor was the firm’s involvement in FTX bankruptcy proceedings, which resulted in a recovery rate of 116% and a return of £28.8 million ($36.7 million) following the sale. Additionally, CoinShares’ acquisition of rival asset manager Valkyrie Funds played a crucial role in boosting exchange-traded products and management fees. The company’s strategic focus on developing and marketing products like the Valkyrie spot Bitcoin exchange-traded fund (ETF), BRRR, and the Bitcoin mining ETF, WGMI, led to continuous net inflows despite market challenges.
In light of the increased gains and total comprehensive income in Q2, CoinShares’ Board of Directors made the decision to modify a policy that allows shareholders to receive special dividends as a token of appreciation for their longstanding trust in the business. CoinShares’ CEO, Jean-Marie Mognetti, highlighted the company’s commitment to delivering shareholder value through tangible dividend payouts on a quarterly basis. The recent special dividend distribution resulting from the disposal of the FTX claim further underscored CoinShares’ dedication to this objective. Concurrently, the company is focused on expanding its presence in the US market and strengthening its distribution network in Europe.
Despite the remarkable profits generated in Q2, CoinShares also faced some setbacks during the period. The decline in cryptocurrency prices impacted the company’s principal investments, erasing some gains from Q1 and reducing the year-to-date profits to £1.8 million ($2.29 million). Furthermore, CoinShares had to write down its investment in the neobank FlowBank following its declaration of bankruptcy by the Swiss Financial Market Supervisory Authority. The decision to fully impair its stake in the bank led to a loss of £21.8 million ($27.6 million).
CoinShares’ strong financial performance in Q2 2024 underscores the company’s resilience and strategic growth initiatives amidst market fluctuations and challenges. By leveraging key opportunities and adapting to changing market conditions, CoinShares continues to demonstrate its commitment to delivering value to shareholders and sustaining long-term growth.