CoinShares reveals strong financial results for the second quarter of 2024

Leading European investment firm CoinShares has revealed strong 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 reported revenue of £22.5 million ($28.5 million) in the second quarter of 2024, representing 110% year-over-year growth from 10.7 million in pounds ($13.5 million) in the second quarter of 2023.

CoinShares sees $513 million in Q2 profit

After paying taxes, CoinShares’ operations made a profit of 403.9 million pounds (over $510 million). During the same period last year, the company’s after-tax income was 10 million pounds ($12.7 million).

One of the main drivers of CoinShares’ financial growth last quarter was the company’s claims on FTX’s bankruptcy proceedings, which yielded a 116% recovery rate and a return of £28.8m (36 .7 million dollars) after the sale. Another factor was CoinShares’ acquisition of rival asset manager Valkyrie Funds, which increased its exchange-traded products and management fees.

CoinShares said it focused on product development and marketing initiatives for Valkyrie’s Bitcoin exchange-traded fund (ETF), BRRR, and Bitcoin mining ETF, WGMI, which saw continued net inflows despite the fall in the market during the quarter.

Due to increased earnings and total global revenue in the second quarter, the CoinShares Board of Directors voted to amend a policy allowing shareholders to receive special dividends in recognition of their long-standing trust in the business

CoinShares CEO Jean-Marie Mognetti said:

“Our strong financial performance has enabled a new dividend policy, which delivers tangible value to shareholders on a quarterly basis. The recent special dividend following the disposal of our FTX claim further underlines our commitment to this objective. Simultaneously, we are driving growth by expanding into the US and improving our European distribution.”

Crypto prices hurt Q1 earnings

Amid the remarkable second-quarter profits, CoinShares also posted some losses. Falling crypto prices wiped out some first-quarter gains from the company’s core investments, reducing year-to-date earnings to 1.8 billion pounds ($2.29 billion).

Additionally, CoinShares wrote down its investment in neobank FlowBank after the Swiss Financial Market Supervisory Authority declared it bankrupt. The company’s decision to fully write down its stake in the bank resulted in a loss of 21.8 million pounds ($27.6 million).

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