CoinShares Announces Q1 2024 Results: Achieving Its Most Successful Quarter in Company History

Rhea-AI Summary

CoinShares reported its Q1 2024 results, marking its most successful quarter in history. The company experienced a 216% YoY increase in revenue, gains, and other income, reaching £43.9 million. Adjusted EBITDA rose over four times YoY to £34.2 million, and total comprehensive income surged over 11x YoY to £34.1 million.

Key highlights include the acquisition of Valkyrie's ETF business in March 2024, enhancing CoinShares' global presence. The Asset Management division saw strong inflows, particularly from CoinShares Physical. The Capital Markets & Hedge Fund Solutions division delivered strong top-line performance due to vibrant market activity and gains from staking and trading.

The Board approved a new dividend policy, with an annual dividend of 20%-40% of the Group's total comprehensive income.

Positive

• Revenue, gains, and other income increased by 216% YoY to £43.9 million.
• Adjusted EBITDA rose over 4x YoY to £34.2 million.
• Total comprehensive income increased over 11x YoY to £34.1 million.
• Successful acquisition of Valkyrie's ETF business, enhancing global market presence.
• Strong inflows in the Asset Management division, particularly from CoinShares Physical.
• Robust performance from the Capital Markets & Hedge Fund Solutions division.
• Board approved a new dividend policy with 20%-40% annual payout of total comprehensive income.

Negative

• No specific negative financial or business aspects were reported in the PR.

Financial Analyst

The Q1 2024 results for CoinShares are striking, demonstrating exceptional growth in multiple financial metrics. With revenue, gains and other income increasing by 216 YoY to £43.9 million and an adjusted EBITDA rising by over four times to £34.2 million, the company shows a robust financial health. Specifically, the total comprehensive income soared by over 11 times to £34.1 million, underscoring the company's strong profitability.

Such a significant increase reflects not just organic growth but also strategic moves like the acquisition of Valkyrie's ETF business. This acquisition enhances CoinShares' operational footprint and market presence, especially in the lucrative ETF sector. The strong inflows into their Asset Management division, particularly from CoinShares Physical, further indicate a solid demand for their investment products.

Additionally, the introduction of a new dividend policy promises an attractive return to shareholders, committing to an annual dividend of 20-40% of the Group's total comprehensive income. This move can be seen as a signal of confidence in their continued financial success and stability, drawing in more retail investors looking for both growth and income opportunities.

Rating: 1

Market Research Analyst

The acquisition of Valkyrie's ETF business by CoinShares is a significant strategic move that’s likely to enhance their market penetration, particularly in the US. This acquisition not only diversifies their product offerings but also positions them strongly in the growing ETF market, which is attracting considerable investor interest, especially with the launch of US Spot Bitcoin ETFs.

Moreover, the robust performance of their Capital Markets & Hedge Fund Solutions division, driven by active market trading and gains from staking, aligns with the broader trends in the digital asset market. These factors collectively contribute to a strong market positioning for CoinShares, making them a notable player in the digital asset investment space.

For retail investors, the company’s ability to integrate acquisitions efficiently and leverage market trends will be important for sustained growth. The exceptional financial results are indicative of effective management and strategic foresight, suggesting a potentially strong future growth trajectory.

Rating: 1

Q1 2024 Earnings Highlights:

• Revenue, gains, and other income increased by 216% YoY
• Over 4x YoY increase in adjusted EBITDA
• Total comprehensive income increased by over 11x YoY

SAINT HELIER, Jersey, May 14, 2024 /PRNewswire/ -- CoinShares International Limited ("CoinShares'' or "the Group") (Nasdaq Stockholm: CS; US OTCQX: CNSRF), the leading European investment company specialising in digital assets, has today published its results for the quarter ending 31^st March 2024.

Jean-Marie Mognetti, Chief Executive Officer of CoinShares said:

"Q1 2024 stands out as our strongest quarter ever, marking a period of unprecedented strength and profitability for CoinShares. This quarter reflects not only our robust financial performance but also highlights our enhanced strategic growth capabilities, exemplified by the successful acquisition of Valkyrie's ETF business in March 2024. This pivotal move has allowed us to expand our operations across the Atlantic, further solidifying our presence in the global market.

At CoinShares, we have consistently equipped ourselves to realise our ambitions while maintaining a steadfast focus on our financial outcomes, which remain central to our strategy. These financial results underscore the Group's significant advancement since 2021, reflecting our continuous commitment to growth and excellence in our operations."

Q1 2024 financial highlights

• Q1 revenue, gains and other income of £43.9 million (Q1 2023: £13.9 million)
• Q1 adjusted EBITDA of £34.2 million (Q1 2023: £7.0 million)
• Total comprehensive income for Q1 2024 of £34.1 million (Q1 2023: £2.9 million)

Q1 2024 operational highlights

• Valkyrie: In March 2024, CoinShares successfully completed the acquisition of Valkyrie's ETF business, significantly enhancing its global market presence and operational footprint across the Atlantic.
• Asset Management: The Asset Management division saw strong inflows, particularly from CoinShares Physical, which notably contributed to the platform's performance, with CoinShares Physical's assets under management becoming a substantial part of the Group's total AUM; additionally, XBT Provider maintained a solid asset base, benefitting from the uplift in the cryptocurrency market.
• Capital Markets & Hedge Fund Solutions: The Capital Markets & Hedge Fund Solutions division delivered robust top-line performance, bolstered by vibrant market activity and gains from staking and trading, thriving particularly after the launch of the US Spot Bitcoin ETFs.
• Dividend: The Board of Directors approved a new dividend policy for the fiscal year 2023, committing to an annual dividend of 20% to 40% of the Group's total comprehensive income, with the initial payment disbursed on May 3rd and three more scheduled throughout the year.

The performance for Q1 marks the Group's strongest quarter ever. Full details of the Q1 results, inclusive of financial information on each of the Group's business units, are included within the full report, available here.

Download the Swedish Executive Summary here.

ABOUT COINSHARES

CoinShares is the leading European investment company 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, and 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 14^th May 2024.

PRESS CONTACT

CoinShares
Benoît Pellevoizin
bpellevoizin@coinshares.com

M Group Strategic Communications
Peter Padovano
press@coinshares.com

 

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SOURCE CoinShares Group

FAQ

How much did CoinShares' revenue increase in Q1 2024?

CoinShares' revenue, gains, and other income increased by 216% YoY to £43.9 million in Q1 2024.

What was CoinShares' adjusted EBITDA for Q1 2024?

CoinShares' adjusted EBITDA for Q1 2024 was £34.2 million, over four times higher than the previous year.

What is CoinShares' total comprehensive income for Q1 2024?

CoinShares' total comprehensive income for Q1 2024 was £34.1 million, over 11 times the amount from Q1 2023.

What significant acquisition did CoinShares complete in March 2024?

CoinShares completed the acquisition of Valkyrie's ETF business in March 2024.

What is the new dividend policy announced by CoinShares?

CoinShares approved an annual dividend policy of 20%-40% of the Group's total comprehensive income.