As a researcher with a background in finance and experience following the crypto and digital asset industry, I’m excited to see European asset manager CoinShares report record performance for the first quarter of 2024. The company’s impressive revenue growth of 216% compared to Q1 2023 is primarily driven by a market recovery since the introduction of Bitcoin exchange-traded funds (ETFs).
European investment firm CoinShares reported exceptional growth in the initial quarter of 2024. This remarkable expansion can be attributed to the market rebound following the introduction of Bitcoin exchange-traded funds (ETFs) late last year.
For the given quarter, the company revealed earnings of £19.5 million, or equivalent to $24.5 million in US dollars. This represented a substantial leap of 216% in comparison to the preceding first quarter of 2023. Additionally, the report disclosed revenues from gains and other sources amounting to £24.4 million, which translates to approximately $30.6 million.
The earnings figure, which is calculated before accounting for interest, taxes, depreciation, and amortization, amounted to 34.2 million pounds ($43 million), representing a significant leap from the 7 million pounds ($8.8 million) recorded in the previous year – signifying a fourfold growth.
Based on the information from CoinShares’s CFO, Richard Nash, the EBITDA margin for the quarter reached 78%. This figure is beginning to resemble the margins we witnessed in the year 2021.
As a researcher, I’d express it this way: I found out that approximately 45% of CoinShares’ earnings come from its asset management business, another 40% stem from capital markets, and the last 15% originate from their principal investment portfolio.
The company reported management fees amounting to 19.5 million pounds (approximately $24.5 million), which is their second highest on record, surpassed only by the fees from the last quarter of 2021.
Valkyrie’s acquisition
On January 12, CoinShares took advantage of a pre-existing agreement to obtain Valkyrie’s funds, with the SEC’s green light on Bitcoin ETFs serving as the enabling factor.
As a crypto investor, I’d rephrase it like this: I acquired the rights to sponsor Valkyrie’s Spot Bitcoin ETF, managing their investment advisory business, Valkyrie Investments, and holding the sponsorship for various other products such as Valkyrie Bitcoin Miners (WGMI) and Valkyrie Bitcoin Futures Leveraged Strategy (BTFX) ETFs.
As a crypto investor, I can tell you that on March 12, the deal was finalized. Based on CoinShares’ report, this acquisition brought around 1.6 million British pounds (equivalent to about 2 million US dollars) in goodwill to their balance sheet. Goodwill refers to the value of intangible assets gained during an acquisition, which isn’t always easily quantifiable.
The CoinShares’ managed assets reached a value of £4.77 billion ($6 billion) as of March 31, 2024, according to the company’s earnings statement. This figure represents a substantial increase of 58% compared to the end of last year. The growth can be attributed to the robust industry performance in Q1 2024, marked by widespread price hikes, as well as CoinShares’ acquisition of Valkyrie during this period.
According to Jean-Marie Mognetti, CEO of CoinShares, the acquisition of Valkyrie aligns with our strategic plans to establish ourselves as a leading global investment firm specializing in digital assets. The US market, which accounts for half of the world’s assets under management, presents a unique growth opportunity for us.
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2024-05-14 19:31