CoinShares reports steep rise in income in first 9-mo of 2021
CoinShares today reported a set of solid financial metrics for the first nine months of 2021.
Management fees generated by the Group’s Asset Management Platform for the nine month period ended 30 September 2021 amounted to £55 million. Q3 fees of £18.4 million are the second highest quarterly results in the business unit’s history, second only to Q2 2021 (£19.6 million).
These management fees are predominantly generated by exchange-traded products (ETPs) issued by the Group’s subsidiary XBT Provider which reference BTC & ETH.
The CoinShares Physical suite of ETPs issued by CoinShares Digital Securities Limited (CSDS) which reference a wider range of digital assets, have continued to see promising inflows.
Following the acquisition of Elwood Asset Management Services Limited, fees from the Elwood Global Blockchain Equity UCITS ETF (now renamed the “CoinShares Blockchain Global Equity Index”) have started to be recognised within the Group’s financials, totalling £616,000 for the quarter.
Coinshares notes that, compared to the market action it saw in the first half the year, Q3 was relatively calm. As its Capital Markets Infrastructure thrives in an active market, the performance over Q3 was down in comparison with Q1 and Q2. That being said, the total income and gains was still in excess of £8.4 million, a figure higher than any quarter of 2020.
Year-to-date, Capital Markets Infrastructure has generated income and gains in excess of £45.8 million compared to £16.8 million for the full year ended December 2020.
Admin expenses for the Group, which had increased during Q2, reverted to the levels seen during Q1 which we believe to be more representative of the ongoing cost base of the Group.
The adjusted EBITDA of the Group for the nine month period ended 30 September 2021 was £88.8 million. The EBITDA margin of 81% has also shown a significant increase when compared to 2020 performance (61% for the year, and 59% to 30 September 2020). The increased level of management fees, trading income and gains & investment gains do not have a proportional impact upon the relatively fixed cost base of the Group, thus allowing for improved margins.
Total comprehensive income of the Group the nine month period ended 30 September 2021 of £84.9 million, compared to £18.4 million for the full financial year 2020.
Total assets held by the Group as at 30 September 2021 of approximately £3.40 billion, showing an increase of approximately 73% over the nine month period (as at 31 December 2020, £1.96 billion).
Post quarter-end, Coinshares completed an investment in FlowBank, a Swiss digital bank. CoinShares says it is working to enhance the bank’s offering with the assistance of CoinShares’ technology stack, with a view to giving clients the ability to directly buy, HODL, and sell cryptocurrencies, as well as other tokenized assets, directly from their FlowBank account.