CoinShares Publishes 2023 Annual Report and Outlines Strategy

Rhea-AI Summary

CoinShares International has published its 2023 Annual Report, showcasing a total revenue of £85.7 million, an adjusted EBITDA of £57.3 million, and a net asset position of £239.2 million as of December 31, 2023. The report highlights the firm's performance in asset management, capital markets, and hedge fund solutions, with a strategic focus on innovation, expansion, and market penetration.

Positive

• The total revenue, gains, and other income for CoinShares International in 2023 amounted to £85.7 million, showing a positive growth compared to 2022.

• The adjusted EBITDA for the company in 2023 was £57.3 million, a significant improvement from the previous year's loss.

• The net asset position of the Group as of December 31, 2023, stood at £239.2 million, indicating a strong financial position.

• CoinShares' strategic focus on innovation and expansion in the digital asset space through acquisitions, partnerships, and product diversification sets the company up for growth and leadership in the market.

Negative

• None.

Insights

Financial Analyst

The reported increase in total revenue, gains and other income to £85.7 million from £72.2 million suggests a robust financial year for CoinShares, despite a decrease in asset management fees from £50.1 million to £43.0 million. This could indicate a strategic realignment or a market shift favoring their other income streams, such as capital markets gains. A substantial improvement in Adjusted EBITDA, from a loss of £6.8 million to a profit of £57.3 million and a total comprehensive income leap to £38.4 million reflect operational efficiency and likely a positive market response to their initiatives. The net asset position growth to £239.2 million reinforces the company’s solid financial health. For investors, these figures suggest an attractive financial turnaround, yet the reduced asset management revenue calls for attention to understand the underlying causes and sustainability of income from other segments.

Market Research Analyst

CoinShares' strategy to diversify and innovate within the digital asset space is of significant interest. The acquisition of Valkyrie's U.S. ETF business and the strategic focus on expanding into new European markets hint at aggressive growth ambitions. Particularly, the company's entry into the U.S. market with sophisticated products such as the WGMI ETF and the BTFX represents an important strategic move, given the size and maturity of the U.S. financial sector. However, investors should be cognizant of the regulatory challenges and competitive landscape in the U.S., which could influence the success of these new ventures. The emphasis on advanced financial products that merge hedge fund sophistication with ETF accessibility could attract savvy investors looking for innovative investment avenues. However, it is critical to monitor the adoption rate and performance of these products post-launch to gauge their impact on the company's bottom line.

Tech Expert

CoinShares' commitment to enhance its proprietary trading platform is noteworthy. Improving operational efficiency and risk management through technology upgrades can provide a competitive edge, particularly in the rapidly evolving digital asset market. The ability to manage volatility and provide advanced trading features could appeal to institutional investors and traders alike. However, the success of these technological enhancements will depend on their execution and ability to meet user expectations. Additionally, the strategic rebranding in line with the CoinShares mother brand suggests a move towards a unified market presence, which could strengthen brand recognition and customer loyalty. However, the effectiveness of these branding efforts should be evaluated against the costs and the actual market penetration achieved.

SAINT HELIER, Jersey, April 30, 2024 /PRNewswire/ -- CoinShares International Limited ("CoinShares" or "the Company") (Nasdaq Stockholm: CS; US OTCQX: CNSRF), the leading European investment company specialising in digital assets, today published its 2023 Annual Report, providing comprehensive and detailed information on the firm, its financial performance, its strategy, corporate governance and the industry and market for the 2023 financial year. The report includes the audited financial statements for the year ending 31st December 2023. The full report can be found here.

2023 Financial Highlights

• Total revenue, gains and other income of £85.7 million (2022: £72.2 million), of which:
  • Asset management fees of £43.0 million (2022: £50.1 million)
  • Capital markets gains and other income of £39.0 million (2022: £26.1 million)
  • Principal investment gains of £3.7 million (2022: loss of £4.9 million)
• Adjusted EBITDA of £57.3 million (2022: Adjusted EBITDA loss of £6.8 million).
• Total comprehensive income for the year of £38.4 million (2022: £2.9 million).
• Net asset position of the Group as of 31st December 2023 of £239.2 million (December 2022: £203.7 million).

2023 Business Overview

• Asset Management:

2023 saw gross revenue generated from XBT Provider of £38.9 million (2022: £46.0 million), with CoinShares Physical posting gross revenue of £2.7 million (2022: £2.3 million). The Group's BLOCK Index generated fees of £1.4 million (2022: £1.9 million).

Reflecting the overall success of these initiatives, the total revenue, gains, and other income for the year amounted to £43.0 million.

• Capital Markets & Hedge Fund Solutions:

The total notional traded by CoinShares Capital Markets in 2023 reduced to $8.8 billion (2022: $15.0 billion). Gains and income generated by the Capital Markets team was £39.0 million.

Strategy

In 2023, our strategic focus on innovation and expansion reinforced our leadership in the digital asset space through strategic acquisitions, partnerships, and product diversification. Looking ahead to 2024, our strategy encompasses enhancing our presence in Europe by extending the XBT Provider product line and increasing market penetration through targeted marketing and a strategic rebranding aligned with the CoinShares mother brand. We are also expanding our footprint in the European markets like France and Italy, emphasising competitive management fees and transparent staking rewards. Globally, our acquisition of Valkyrie's U.S. ETF business marks a significant step in entering the U.S. market, aiming to introduce sophisticated products such as the WGMI ETF and the BTFX. This expansion is coupled with a focus on creating advanced financial products that blend the sophistication of hedge funds with the accessibility of ETFs, leveraging our deep expertise in digital assets. Additionally, the introduction of Hedge Fund Solutions aims to establish a trusted presence in the U.S., and we are enhancing our proprietary trading platform to improve operational efficiency and risk management, anticipating a transformative 2024 with these initiatives.

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 U.K. and the U.S. CoinShares is regulated in Jersey by the Jersey Financial Services Commission, in France by the Autorité des marchés financiers, in the U.S. by the 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

PRESS CONTACT

CoinShares
Benoît Pellevoizin
bpellevoizin@coinshares.com
+33 6 72 44 07 17

This information is information that CoinShares International Limited is obliged to make public pursuant to the Securities Markets Act. The information was sent for publication, through the agency of the contact persons set out above, on 30th April 2024, at 8:00 a.m. CET.

M Group Strategic Communications
Peter Padovano
press@coinshares.com

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SOURCE CoinShares Group

FAQ

What is the total revenue for CoinShares International in 2023?

The total revenue for CoinShares International in 2023 was £85.7 million, showing positive growth compared to 2022.

What was the adjusted EBITDA for CoinShares International in 2023?

The adjusted EBITDA for CoinShares International in 2023 was £57.3 million, a significant improvement from the previous year's loss.

What is the net asset position of the Group as of December 31, 2023?

The net asset position of the Group as of December 31, 2023, was £239.2 million, indicating a strong financial position.

What was the strategic focus of CoinShares International in 2023?

In 2023, CoinShares focused on innovation, expansion, and market penetration in the digital asset space through strategic acquisitions, partnerships, and product diversification.