CoinShares Announces Successful Sale of FTX Claim

Rhea-AI Summary

CoinShares has successfully sold its FTX claim, achieving a recovery rate of 116%, netting £31.32 million on a £26.6 million claim. This agreement, subject to closing conditions, bolsters CoinShares' financial health, providing significant benefits for shareholders and clients. The increased financial flexibility will enable CoinShares to reinvest in growth opportunities and enhance its market position. Jean-Marie Mognetti, CEO, emphasized the positive impact of this recovery on shareholder rewards and future growth in the digital asset industry.

Positive

• The sale of the FTX claim resulted in a 116% recovery rate.
• CoinShares will receive £31.32 million from the claim, improving its financial health.
• The transaction provides increased financial flexibility for growth and innovation.

Negative

• None.

Insights

Financial Analyst

CoinShares' successful sale of its FTX claim yielding a of 116% is a significant event. From a financial perspective, the return of £31.32 million on a £26.6 million claim indicates an 16% gain after broker fees. This kind of recovery rate is exceptional, especially considering the context of FTX's collapse, which had created a tumultuous environment in the crypto space. Generally, recovery rates in bankruptcy or distressed scenarios tend to be much lower.

The immediate impact is a boost to CoinShares' financial health. The additional liquidity can be strategically deployed to fuel growth initiatives, pay down debt, or return capital to shareholders through dividends or buybacks. Investors should also note that this transaction improves the company's balance sheet, potentially reducing risk and enhancing creditworthiness.

In the short-term, investors might see a positive sentiment reflected in the share price due to the improved financial position. However, the long-term benefits will depend on how effectively CoinShares can reinvest this capital. If the company can channel these funds into profitable ventures, it could result in sustained growth and higher shareholder returns.

One should also consider the broader market implications. This recovery might signal to investors the potential resilience and adeptness of CoinShares' management in navigating financial crises. Moreover, this event could bolster confidence in the company's strategic acumen, potentially attracting more investors.

Market Research Analyst

This transaction positions CoinShares favorably within the digital asset investment industry. The industry has seen significant volatility and recovering funds from a collapsed entity like FTX is no small feat. This not only showcases CoinShares' ability to mitigate risks but also enhances its reputation as a prudent and capable investment manager.

The increased financial flexibility could enable CoinShares to strengthen its market position. By reinvesting in growth opportunities, such as expanding their service offerings or investing in new technologies, CoinShares can better serve its clients and differentiate itself from competitors. For clients, this could mean improved services and innovative products that leverage emerging trends in the digital asset space.

It's also worth noting the potential for increased market share. As CoinShares leverages this capital to drive expansion, it could capture a larger portion of the digital asset market. This could attract new clients and result in higher assets under management (AUM), which, in turn, might boost revenue and profitability.

With a Recovery Rate of 116%, the Agreement Strengthens CoinShares' Financial Health and Fosters Growth, Providing Significant Benefits for Shareholders and Clients

SAINT HELIER, Jersey, June 24, 2024 /PRNewswire/ -- CoinShares International Limited ("CoinShares" or "the Group") (Nasdaq Stockholm: CS; US OTCQX: CNSRF), the leading European investment company specialising in digital assets, is pleased to announce the successful sale of its FTX claim. The agreement, signed today and subject to customary closing conditions, will yield a recovery rate of 116% net of broker fees, resulting in a return of £31.32 million on a £26.6 million claim.

Key Highlights:

• Recovery Rate: Upon completion, CoinShares will have achieved a recovery rate of 116% on its FTX claim, translating to a return of £31.32 million.
  
  
• Shareholder Benefits: The successful claim sale will significantly enhance the Group's financial position, creating opportunities to provide increased returns to our valued shareholders.
  
  
• Client Advantages: The increased financial flexibility resulting from this transaction will allow CoinShares to reinvest in growth opportunities, further strengthening our market position. Clients can anticipate continued innovation and enhanced services as the Group leverages this capital enhancement to drive expansion and development within the digital asset sector.

Jean-Marie Mognetti, CEO of CoinShares, commented: "The resolution of the FTX situation has been highly favourable for CoinShares. This exceptional recovery rate is a testament to the diligence and expertise of our team. We remain dedicated to leveraging this success to reward our shareholders and to drive further growth and innovation within the digital asset industry."

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 is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014.

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 is the recovery rate for CoinShares' FTX claim?

CoinShares achieved a recovery rate of 116% for its FTX claim.

How much will CoinShares receive from the sale of its FTX claim?

CoinShares will receive £31.32 million from the sale of its FTX claim.

How will the sale of the FTX claim impact CoinShares' financial position?

The sale will significantly enhance CoinShares' financial position, providing more opportunities for growth and innovation.

What benefits will CoinShares shareholders see from the FTX claim sale?

Shareholders will benefit from increased returns due to CoinShares' improved financial health following the FTX claim sale.

How will the FTX claim sale affect CoinShares' clients?

Clients can expect continued innovation and enhanced services as CoinShares reinvests the capital from the FTX claim sale into growth opportunities.