CoinShares Announces Q3 2024 Results

Rhea-AI Summary

CoinShares International has reported strong Q3 2024 financial results, with total revenue reaching £25.8 million (up from £15.2M in Q3 2023) and net profit of £14.2 million (up from £6.7M). The company's Physical ETP platform saw nearly $80 million in net flows, while the CoinShares-Valkyrie business line achieved $61 million in net inflows. The company implemented a significant accounting policy change for digital assets, now recording their movements at fair value through profit and loss. CoinShares holds 78 BTC on its balance sheet and reported an EBITDA of £15.4 million for Q3 2024.

Positive

• Total revenue increased 70% YoY to £25.8M in Q3 2024
• Net profit more than doubled to £14.2M from £6.7M YoY
• EBITDA grew 85% to £15.4M compared to Q3 2023
• Physical ETP platform achieved $80M in net flows
• CoinShares-Valkyrie business recorded $61M in net inflows

Negative

• Principal Investment portfolio decreased by £1.9M in Q3
• Delay in receipt of recognized carried interest from CS2 fund

Insights

Financial Analyst

The Q3 2024 results demonstrate robust financial performance with significant year-over-year growth. Total revenue increased by 69.7% to £25.8 million, while EBITDA grew by 85.5% to £15.4 million. The net profit surged by 111.9% to £14.2 million.

The asset management division showed strong momentum with $80 million in net flows for their Physical ETP platform and $61 million in US inflows through CoinShares-Valkyrie. The strategic shift in accounting policy for digital assets to fair value through profit and loss enhances transparency and aligns with industry best practices. The company's holding of 78 BTC on its balance sheet demonstrates confidence in cryptocurrency as a treasury instrument.

The £1.9 million decrease in the Principal Investment portfolio due to CS2 fund extension is a temporary setback but doesn't impact the overall positive trajectory. The development of MATRIX trading platform and planned equity long-short fund shows promising diversification efforts.

Market Research Analyst

CoinShares' strategic positioning in the digital asset space is strengthening through multiple vectors. The expansion in Germany through the finanzen.net partnership targets a important retail market, while the US operations through Valkyrie are gaining traction. The algorithmic trading platform MATRIX represents a significant technological advancement, potentially opening new revenue streams through institutional collaborations.

The company's transition to holding Bitcoin as a treasury instrument aligns with market trends and positions them alongside major publicly traded companies in the crypto space. This move, combined with the accounting policy change, suggests increased institutional maturity and could attract traditional investors who previously struggled to evaluate digital asset companies.

SAINT HELIER, Jersey, Nov. 5, 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 30^th September 2024.

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

"In Q3 2024, we concentrated on executing our strategy and preparing for a promising Q4 and the upcoming year. A key achievement was the change in our accounting policy for digital assets. We now record movements on digital assets at fair value through profit and loss, enhancing the transparency of our financial statements. This change enables a wide range of investors to have a better understanding of CoinShares' financial performance and health.

We have concurrently implemented bitcoin as a treasury management instrument, thus demonstrating our commitment to our investment thesis. Consequently, we now rank among the select few publicly traded companies globally that have opted to maintain bitcoin holdings (78 BTC at the end of Q3) on our balance sheet."

Q3 2024 financial highlights

• Total Revenue, Gains & Other Income for Q3 2024 of £25.8 million (Q3 2023: £15.2 million)
• EBITDA for Q3 2024 of £15.4 million (Q3 2023: £8.3 million)
• Net profit for Q3 2024 of £14.2 million (Q3 2023: £6.7 million)

Q3 2024 operational highlights

• Asset Management: The CoinShares Physical ETP platform closed the quarter with nearly $80 million in net flows, marking its second-largest quarterly inflow since 2021. We launched a new multi-asset ETP in partnership with finanzen.net to enhance our visibility in the German retail market.
  
  
• In the United States, the CoinShares-Valkyrie business line had its second-best quarter, achieving $61 million in net inflows, mainly from BRRR and WGMI products. Integration of this business line into the wider CoinShares Group is largely complete, and we anticipate it becoming a meaningful contributor to overall Group value, with full stride expected in 2025.
  
  
• Capital Markets & Hedge Fund Solutions: Following the successful rollout of our algorithmic trading platform, MATRIX, our development team is optimising its performance and connectivity, enabling signal ingestion from multiple sources and opening doors to new collaborations. This allows our quantitative research team to focus on new alpha generation strategies to drive future performance for our Capital Markets and Funds divisions.

Concurrently, our Hedge Fund Solutions division is preparing to launch an equity long-short fund focused on crypto equities, leveraging our BLOCK Index expertise; the product is ready to launch pending market demand, currently being assessed by our sales teams in the United States and Europe.

• Principal Investments: Despite a decrease of approximately £1.9 million in the Group's Principal Investment portfolio during Q3—primarily due to an extension of the CS2 fund's life that delays the receipt of our recognized carried interest and results in a corresponding discount—we have observed positive developments in some of our smaller investments. These include the conversion of one of our SAFEs (Station 70) and the change in status of GTSA to that of an Electronic Money Institution.
  
  
• Accounting Policy Change: An important development this quarter concerns our accounting policies for digital asset holdings; historically, our financial statements were distorted by classifying digital assets as intangibles under IFRS, resulting in profit or loss after tax figures that differed markedly from our total comprehensive income and impacting the readability of our accounts. As our organisation has evolved and our activities have diversified significantly, we are now able to classify our digital assets so that their fair value movements are taken through profit and loss, allowing us to present financial statements that provide a more understandable view of our financial performance—easily reconciled to our EBITDA—a transition we've been eager to make and are pleased to have finally achieved.

Full details of the Q3 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 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 (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act.

The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on November 5, 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

What was CoinShares (CNSRF) revenue in Q3 2024?

CoinShares reported total revenue, gains & other income of £25.8 million in Q3 2024, compared to £15.2 million in Q3 2023.

How many bitcoins does CoinShares (CNSRF) hold on its balance sheet in Q3 2024?

CoinShares held 78 BTC on its balance sheet at the end of Q3 2024.

What was CoinShares (CNSRF) net profit for Q3 2024?

CoinShares achieved a net profit of £14.2 million in Q3 2024, up from £6.7 million in Q3 2023.

How much net inflow did CoinShares' Physical ETP platform achieve in Q3 2024?

CoinShares' Physical ETP platform achieved nearly $80 million in net flows during Q3 2024.