CoinShares registers drop in revenue in Q1 2023
European digital asset manager CoinShares International Limited today published its results for the quarter ending 31st March 2023.
Revenue for the first three months of 2023 amounted to £9.4 million, markedly down from the result of £18.0 million registered in the year-ago quarter.
Gains and Other income for the first quarter of 2023 were £5.9 million, also steeply down from the corresponding period a year earlier (£11.2 million).
Adjusted EBITDA for the first quarter of 2023 were £8.5 million, down from £19.4 million a year earlier.
Total comprehensive income for Q1 2023 was £2.9 million (Q1 2022: £20.7 million).
CoinShares’ Passive Asset Management division had a steady quarter, generating management fees of £9.2 million. CoinShares introduced fee-free services for its CoinShares Physical Ethereum ETP and launched two new crypto ETP indices: CoinShares Physical Top 10 Crypto Market, which provides exposure to a diverse range of cryptocurrencies for cost-effective diversification, and the CoinShares Physical Smart Contract Platform, which offers exposure to the infrastructure layers of the digital asset market.
CoinShares’ Capital Markets division reported gains and other income in Q1 of £6.7 million. During the past quarter the Capital Markets department has executed three strategic actions to mitigate risk and enhance due diligence: bolstering CoinShares’ counterparty controls and processes using internal expertise; pioneering professionalisation of the sector to reduce counterparty risks, including establishing proofs of concept with several exchanges and custodians for safer trading; and securing new banking partnerships to ensure smooth US dollar transactions in light of recent regulatory changes in the crypto market.
Jean-Marie Mognetti, Chief Executive Officer of CoinShares said:
“I’m pleased to announce that Q1 2023 has underscored CoinShares’ robust resilience and adaptability. The financial landscape has been riddled with obstacles this quarter, yet, CoinShares has emerged not just unscathed, but stronger. Looking ahead, I remain optimistic about our industry and CoinShares’ place within it.”