CoinShares Announces Q1 2025 Results

Rhea-AI Summary

CoinShares (CNSRF) reported mixed Q1 2025 financial results amid challenging market conditions. Total revenue declined to $40.0M (vs $47.5M in Q1 2024), with net profit falling to $23.8M (vs $41.5M). Asset management revenue increased to $29.6M (vs $24.5M), while capital markets income decreased to $11.9M (vs $14.1M). CoinShares Physical platform led the European crypto ETP market with $268M in net inflows, tripling its closest competitor despite Bitcoin's 12.1% and Ethereum's 45.2% decline. The company's BITC product attracted $202M following a fee reduction to 0.25%. The firm increased its Bitcoin holdings by 45% to 236 BTC and announced plans to pursue a U.S. exchange listing. The company also changed its reporting currency from GBP to USD and distributed its first quarterly dividend for 2024.

Positive

• Asset management revenue increased 20.8% YoY to $29.6M
• CoinShares Physical led European crypto ETP market with $268M net inflows
• BITC product attracted $202M after reducing management fee to 0.25%
• Strategic Bitcoin holdings increased 45% from 163 to 236 BTC
• New partnership with BoursoBank expanded reach to 7M+ French clients
• First quarterly dividend distribution initiated

Negative

• Total revenue declined 15.8% YoY to $40.0M
• Net profit decreased 42.7% YoY to $23.8M
• Principal investments recorded $1.5M loss vs $8.9M gain in Q1 2024
• US Valkyrie platform experienced $288M in net outflows
• $3.0M unrealized loss on treasury holdings due to market decline
• Staking revenues decreased 26% quarter-on-quarter to $5.6M

Insights

Financial Analyst specializing in Digital Asset Companies

CoinShares posted solid Q1 results despite cryptocurrency market declines, with strong ETP inflows but lower profits year-over-year.

CoinShares has demonstrated remarkable resilience in a challenging quarter where Bitcoin declined 12.1% and Ethereum plummeted 45.2%. The company posted $40.0 million in total revenue and $23.8 million in net profit, down from $47.5 million revenue and $41.5 million profit in Q1 2024. Despite this year-over-year decline, there are several positive developments worth highlighting.

The asset management division emerged as a particular bright spot, with revenue increasing to $29.6 million from $24.5 million in the previous year. Their Physical ETP platform dominated the European crypto ETP market with $268 million in net inflows, tripling their closest competitor's performance. This success came after strategically reducing management fees on their flagship BITC product to 0.25%, which attracted $202 million in new capital.

The Capital Markets division recorded $11.9 million in gains, down from $14.1 million in Q1 2024. This represents a normalization after the exceptional post-election rally in Q4 2024. The trading team demonstrated skill in extracting value during difficult market conditions, generating $3.6 million from delta-neutral strategies despite Bitcoin's decline.

CoinShares' lending operations reflect a disciplined approach, prioritizing borrower quality over volume with $101 million in open loans at a 4.2% average yield. Their staking revenues were negatively impacted by Ethereum's steep drop, decreasing 26% quarter-on-quarter to $5.6 million.

The company recorded a $3.0 million unrealized loss on treasury holdings but continued increasing its strategic Bitcoin position by 45% from 163 to 236 BTC. This represents a long-term bet on Bitcoin appreciation that could pay off significantly if prices recover.

The company's pursuit of a U.S. exchange listing indicates strategic ambition to access the world's largest digital asset market, while the change in functional currency from GBP to USD signals growing international focus. The introduction of quarterly dividends demonstrates management's commitment to shareholder returns during this expansion phase.

SAINT HELIER, Jersey, May 13, 2025 /PRNewswire/ -- CoinShares International Limited ("CoinShares'' or "the Group") (Nasdaq Stockholm: CS; US OTCQX: CNSRF), a leading global investment company specialising in digital assets, has today published its results for the quarter ending 31st March 2025.

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

"Despite the sharp decline in digital asset prices during Q1, CoinShares has demonstrated exceptional operational resilience and strategic discipline. Our proactive approach to market volatility has not only enabled us to remain robust but has also supported continued growth—most notably through our CoinShares Physical platform, which is outperforming peers at an unprecedented pace.

Shifting conditions create opportunities. Our brand strength has positioned CoinShares as the leading provider of crypto ETPs in Europe, attracting sustained inflows and reinforcing our market leadership.

In parallel, we are re-affirming our long-standing objective of securing a U.S. exchange listing. With the US regulatory environment evolving in a more constructive direction, this goal is realistic—further advancing our strategy to extend CoinShares' presence in the world's largest and most influential capital market for digital asset firms."

Q1 2025 financial highlights

• Asset management revenue of $29.6 million (Q1 2024: $24.5 million)
• Capital markets gains/income of $11.9 million (Q1 2024: $14.1 million)
• Principal Investment loss of $1.5 million (Q1 2024: $8.9 million gain)
• Total revenue, gains and other income of $40.0 million (Q1 2024: $47.5 million)
• EBITDA of $29.8 million (Q1 2024: $35.3 million)
• Net profit of $23.8 million (Q1 2024: $41.5 million)

Q1 2025 operational highlights

• CoinShares demonstrated robust performance across its platforms in Q1 2025, with management fees of $29.6m. CoinShares Physical led the European crypto ETP market with $268m in net inflows—triple its closest competitor—despite challenging market conditions that saw Bitcoin decline 12.1% and Ethereum fall 45.2%. While the flagship BITC product attracted $202m after strategically reducing its management fee to 0.25%, and a new partnership with BoursoBank expanded reach to 7m+ French clients, other platforms showed mixed results: XBT improved with reduced outflows of $154m (vs $370m in Q4 2024), the BLOCK Index outperformed peers despite a 13.1% decline, and the US Valkyrie platform experienced $288m in net outflows while maintaining its strong retail base amid broader market corrections that impacted total AuM across all platforms.
  
  
• CoinShares' Capital Markets division experienced moderate Q1 performance across all segments, generating gains and other income totalling $11.9m, returning to typical levels following Q4's exceptional post-election rally when Bitcoin appreciated 50%. Despite Bitcoin's 13% decline during the quarter, the Trading Team generated $3.6m from delta-neutral strategies, while liquidity provisioning contributed $1.9m amid cooling bullish sentiment. The company maintained strict credit discipline in its lending portfolio, prioritizing borrower quality over volume and ending with $101m in open loans at 4.2% average yield, while Ethereum's 46% decline affected staking revenues, which decreased 26% quarter-on-quarter to $5.6m.
  
  
• Since its 2021 Stockholm listing, CoinShares has pursued a U.S. exchange listing to enter the world's largest digital asset market, a goal becoming more viable given recent regulatory improvements. Simultaneously, the company is boosting share liquidity through expanded analyst coverage and institutional roadshows while demonstrating shareholder commitment via the May 6 distribution of its first quarterly dividend for 2024.
  
  
• Despite recording a $3.0m unrealized loss on the Group's treasury holdings due to Q1's pronounced price declines, CoinShares continued building its strategic Bitcoin position, increasing holdings by 45% from 163 to 236 BTC by quarter-end.

Functional & presentation currency change

Effective 1 January 2025, the Group has amended its functional and presentation currency from GBP to USD to more accurately reflect the economic environment in which the Group is operating as it continues to expand.

In accordance with IAS 21 – The Effects of Changes in Foreign Exchange Rates, the change in functional currency has been applied prospectively from the date of change. Accordingly, all items in the financial statements were translated into USD at the exchange rate prevailing at that date. The change in presentation currency has been applied retrospectively. The comparative financial information has been restated as if USD had always been the Group's presentation currency.

Further information, along with the full detail of the Q1 results, are included within the full report, available here.

Download the Swedish Executive Summary here.  

ABOUT COINSHARES

CoinShares is a leading global 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 Securities and Exchange Commission, National Futures Association and 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 6:30 am CET on 13^th May 2025.

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

What were CoinShares (CNSRF) key financial results for Q1 2025?

CoinShares reported Q1 2025 total revenue of $40.0M, EBITDA of $29.8M, and net profit of $23.8M. Asset management revenue increased to $29.6M, while capital markets income was $11.9M.

How did CoinShares Physical platform perform in Q1 2025?

CoinShares Physical led the European crypto ETP market with $268M in net inflows, triple its closest competitor. Its BITC product attracted $202M after reducing management fee to 0.25%.

What caused the decline in CoinShares (CNSRF) Q1 2025 profits?

The profit decline was due to challenging market conditions, with Bitcoin falling 12.1% and Ethereum dropping 45.2%, leading to reduced capital markets income, principal investment losses, and $3.0M unrealized loss on treasury holdings.

What strategic changes did CoinShares announce in Q1 2025?

CoinShares announced plans to pursue a U.S. exchange listing, changed reporting currency from GBP to USD, increased Bitcoin holdings by 45% to 236 BTC, and initiated its first quarterly dividend for 2024.

How did CoinShares' US operations perform in Q1 2025?

CoinShares' US Valkyrie platform experienced $288M in net outflows during Q1 2025, though it maintained its strong retail base amid broader market corrections.