CoinShares, a leading European investment company, has reported impressive financial results for the second quarter of 2024. The company’s revenue more than doubled compared to the same period in 2023. The earnings report revealed that CoinShares generated revenue of £22.5 million ($28.5 million) in Q2 2024, marking a significant 110% year-over-year growth from the £10.7 million ($13.5 million) recorded in Q2 2023. After accounting for taxes, CoinShares’ operations produced profits of £403.9 million (over $510 million), a stark contrast to the £10 million ($12.7 million) revenue after tax in the previous year.
One of the key drivers of CoinShares’ financial success in the last quarter was the firm’s involvement in FTX bankruptcy proceedings, resulting in a recovery rate of 116% and a return of £28.8 million ($36.7 million) post-sale. Furthermore, CoinShares’ acquisition of Valkyrie Funds, a rival asset manager, contributed to the increase in exchange-traded products and management fees. The company’s focus on product development and marketing initiatives for the Valkyrie spot Bitcoin ETF, BRRR, and the Bitcoin mining ETF, WGMI, resulted in consistent net inflows despite market fluctuations during the quarter.
Dividend Policy and CEO Statement
With the improved financial performance in Q2, CoinShares’ Board of Directors decided to revise the dividend policy, offering special dividends to shareholders as a token of appreciation for their continuous support. CEO Jean-Marie Mognetti highlighted the company’s commitment to creating shareholder value through the new dividend policy, which was further reinforced by the recent special dividend from the FTX claim disposal. Mognetti also emphasized CoinShares’ growth strategy, focusing on expansion in the US market and strengthening European distribution channels.
Despite the significant profits attained in Q2, CoinShares also encountered some setbacks. The downturn in cryptocurrency prices eroded certain gains from the company’s investments in Q1, leading to a decrease in year-to-date gains to £1.8 million ($2.29 million). Additionally, CoinShares had to write off its investment in neobank FlowBank after it was declared bankrupt by the Swiss Financial Market Supervisory Authority. The decision to fully impair its stake in the bank resulted in a loss of £21.8 million ($27.6 million).
CoinShares’ strong financial performance in Q2 2024 demonstrates the company’s ability to navigate through challenges and capitalize on opportunities in the investment landscape. By leveraging strategic acquisitions, product development, and marketing initiatives, CoinShares continues to drive growth and deliver value to its shareholders amidst a competitive market environment.
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