European Digital Asset Manager CoinShares Releases 2021 Interim Financial Results Highlights

CoinShares International Ltd (Nasdaq First North Growth Market: CS) has shared its interim financial results for the 6 months ended 30 June 2021.

The full report from European digital asset manager CoinShares, may be accessed via the firm’s Investor Relations site.

As stated in the report:

2021 Interim Financial Results Highlights:

  • Total “comprehensive” income of £58.7 million. (H1 2020: £10.4 million, FY2020: £18.4 million).
  • Adjusted EBITDA of £62.8 million, “achieving a margin of 85%.” (H1 2020: £8.6 million / 58%, FY2020: £22.1 million / 63%).
  • Management fees generated by the Group’s Asset Management Platform of £36.7 million. (H1 2020: £6.7 million, FY2020: £18.4 million).
  • Income and gains “generated by the Group’s Capital Markets” of £37.4 million (H1 2020: £8.0 million, FY2020: £16.8 million).
  • Fair value gains on Principal Investments of £4.1 million. (H1 2020: £0.4 million, FY2020: £1.0 million).
  • Assets under Management (“AUM”) as at 30 June 2021 of £2.2 billion. (31 December 2020: £1.7 billion).
  • Net asset position of the Group “as at 30 June 2021 of £128.3 million.” (31 December 2020: £56.5 million).

Jean-Marie Mognetti, CEO at CoinShares stated:

“Following an exceptionally strong Q1 report, we have built on that momentum and reported the strongest Q2 in our Group’s history. This was accomplished despite the market volatility and digital asset price erosion reinforcing our view that CoinShares, Europe’s largest and longest standing Digital Asset Firm, is much more than a beta play on digital assets.”

He added:

“Our Asset Management Platform business increased over 99% and our Capital Markets Infrastructure business increased over 122%, compared to 2020 year-end and significantly higher year-on-year. This strong performance led to an EBITDA improvement of 184% compared to 2020 year-end, in only a six-month period. With the new products brought to market, new exchange listings and new alliances formed, coupled with our acquisition of the ETF business from Elwood Technologies, we are well positioned to keep improving the earnings power of our Company.”

Mognetti also noted that they are now in what he believes is “the best corporate and financial position we have ever been in and have a lot of exciting opportunities ahead to improve our business and drive shareholder value.”

As mentioned in the report:

2021 Interim Financial Results Summary

After the Group’s “record” Q1 results (as announced in May 2021), CoinShares has achieved a record Q2, “resulting in the strongest interim performance in the Group’s history.”

According to the announcement, this performance has been (mainly) driven by Bitcoin and Ethereum prices hitting their all-time highs in April and May 2021, respectively. This has “resulted in increased management fees across the Group’s Asset Management Platform.”

As noted in the report, the volatility that accompanied these cryptocurrency price increases, and the “subsequent volatility of the declines seen in the latter part of May, continuing into June, resulted in market conditions that the Group was able to benefit from.”

As stated in the report, delta neutral trading strategies, fixed income activities and liquidity provisioning for the CoinShares’ own products “all contributed to the strong performance of the Group’s Capital Markets Infrastructure.”

2021 Interim Commercial and Operational Highlights

As noted in the report:

“Expanded our footprint into the equities market with the acquisition of the ETF index business from Elwood Technologies, as announced on 6 July 2021, establishing a partnership with Invesco to further bridge the gap between traditional asset management and cryptocurrencies, whilst broadening both firms’ connectivity with global institutional investors and allocators.”

As mentioned in the update from CoinShares:

“Reached record trading volumes across our two ETP platforms on 19 May 2021, with more than $490m in CoinShares ETPs changing hands in a single day, being the highest volume of any European crypto ETP provider (2). These volumes demonstrated the robustness of the CoinShares Asset Management platform, which continued to operate seamlessly during volatile periods when several crypto exchanges halted trading.”

For more details on this report from CoinShares, check here.

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