European investment company CoinShares recently announced impressive financial results for the second quarter of 2024. The company’s revenue more than doubled compared to the same period in 2023. According to the earnings report, CoinShares achieved a revenue of £22.5 million ($28.5 million) in Q2 2024, showing a 110% year-over-year growth from the £10.7 million ($13.5 million) reported in Q2 2023. After deducting taxes, CoinShares recorded profits of £403.9 million (over $510 million), a significant increase from the £10 million ($12.7 million) reported in the same period last year.
One of the key drivers behind CoinShares’ financial success in the last quarter was the company’s claims on FTX bankruptcy proceedings, resulting in a recovery rate of 116% and a return of £28.8 million ($36.7 million) after the sale. Additionally, CoinShares’ acquisition of rival asset manager Valkyrie Funds played a crucial role in boosting its exchange-traded products and management fees. The company’s focus on product development and marketing initiatives for the Valkyrie spot Bitcoin exchange-traded fund (ETF), BRRR, and the Bitcoin mining ETF, WGMI, helped attract continuous net inflows despite market fluctuations.
Due to the increased gain and total comprehensive income in Q2, CoinShares’ Board of Directors decided to amend a policy allowing shareholders to receive special dividends as a token of appreciation for their continued trust in the business. CEO of CoinShares, Jean-Marie Mognetti, emphasized the company’s commitment to delivering shareholder value on a quarterly basis through its strong financial performance. The recent special dividend distributed after the disposal of the FTX claim further reinforced this commitment while also focusing on driving growth in the US and enhancing European distribution.
Despite the remarkable profits in Q2, CoinShares also faced challenges and recorded some losses during the quarter. The decline in cryptocurrency prices impacted the company’s principal investments, erasing some gains from the previous quarter and reducing year-to-date gains to £1.8 million ($2.29 million). Additionally, CoinShares had to write down its investment in the neobank FlowBank after it was declared bankrupt by the Swiss Financial Market Supervisory Authority. This decision led to a loss of £21.8 million ($27.6 million) as the company fully impaired its stake in the bank.
CoinShares’ financial performance in Q2 2024 showcased both remarkable growth and challenges. While the company experienced significant revenue growth and profitability, it also had to navigate losses and setbacks in certain investments. Moving forward, CoinShares will need to continue its focus on driving growth, innovation, and value for its shareholders to sustain its position in the competitive investment market.