CoinShares is weathering Terra storm with higher Q3 revenue

European cryptocurrency investment firm CoinShares posted third-quarter earnings that showed a marked improvement when compared with the second quarter.


Europe’s largest crypto asset manager said combined revenue, gains and other income was reported at £20.0 million, up 41 percent from Q2 2021’s £14.2 million. However, the figure was down by 24 percent when weighed against £26.2 million in the comparable period of 2021.

Adjusted EBITDA also dropped to £6.4 million from £8.2 million in the second quarter and £26 million in the three months through September 2021.

CoinShares’ net asset position has increased 20% year-to-date, to £240.6 million at the end of Q3. This compares to £200 million it reported on December 31, 2021. The company says this increase places it in “the perfect position” to emerge stronger from this consolidation phase and navigate recent external market turbulence thanks to a resilient strategy.

Coinshares reported a loss of £0.1 million in the quarter ending June 30 from a positive income of £26.6 million the previous year. That was Coinshare’s first negative quarter since going public in March 2021.

The company attributed the net loss to its TerraUSD (UST) holdings. The London-based firm recorded an “exceptional” loss of £17 million (roughly $21.4 million) from its exposure to Terra’s token when it exited its UST position.

Jean-Marie Mognetti, Chief Executive Officer of CoinShares said: “We are pleased to announce our resilient performance during the quarter, returning to profitable growth despite recent and residual turbulence in the digital asset space. We continue to generate strong and stable revenues within our Asset Management business unit, which is in turn being supported by additional income and gains from our Capital Market’s activities.”

CoinShares’ earnings call highlighted the recent acquisition of Napoleon Asset Management, which rebranded as CoinShares France in September. The newly-acquired business was the first AIFM-regulated crypto asset manager in Europe and received AMF final approval in July. It also completed the rebranding and relaunch of its consumer solutions platform – formerly Napoleon – as in September.

Other business highlights show that CoinShares has taken steps towards its long-term strategy, including progressing plans to uplist to the Nasdaq Stockholm Main Market.

Meanwhile, the group continues diversification of its asset management platform through the launch of additional products within the CoinShares Physical product suite. Europe’s largest digital asset investment firm also introduced an automated trading product for retail crypto investors, aiming for a market niche not well served by robo advisors.

The platform, which is marketed in the European Union and UK, connects to users’ preferred exchanges then automatically executes their chosen trading strategies.