Positive Q2 Earnings Reported by CoinShares, Despite Flowbank Bankruptcy 😃

Discover CoinShares’ Strong Financial Performance in Q2 2024 📈

Coin asset manager CoinShares recently announced their financial results for the second quarter of 2024, showcasing impressive revenue growth despite facing challenges like the FlowBank bankruptcy. Here’s a breakdown of their performance:

Revenue Surge Amid Challenges

• CoinShares reported a combined revenue, gains, and other income of £37.6 million ($47.9 million) in Q2 2024, a substantial leap from £18.9 million ($24 million) in the same period last year.

• This growth primarily stems from the solid performance of CoinShares’ core business operations, although it was somewhat offset by the financial repercussions of the FlowBank bankruptcy.

FlowBank Bankruptcy Impact

• On June 13, CoinShares received notice from the Swiss Financial Market Supervisory Authority (FINMA) regarding actions taken against FlowBank.

• FlowBank, in which CoinShares held a significant stake, faced bankruptcy, resulting in a notable financial setback for CoinShares. In 2022, CoinShares acquired an additional 20.8% stake in FlowBank, adding to its existing 9.02% stake from 2021, bringing the total holding to 29.3%.

Impairment of Investment

• On June 22, CoinShares made the decision to fully impair its investment in FlowBank, incurring a charge of £21.8 million ($27.8 million).

• Despite this impairment, CoinShares clarified that it had no impact on the group’s operations, products, or services, reassuring stakeholders of the stability of their core business.

FTX Claim Sale Aids Recovery

• Following the successful sale of its claim against FTX, a crypto exchange that declared bankruptcy in 2022, CoinShares saw a recovery rate of 116% net of broker fees, generating $36 million in proceeds.

• This sale, executed on June 24 of this year, helped bolster CoinShares’ financial performance for the quarter, mitigating the effects of other financial challenges.

Robust Growth in Crypto ETPs

• CoinShares’ asset management segment experienced significant growth, with fees from Exchange Traded Products (ETPs) and index operations reaching £22.4 million ($27.7 million) in Q2 2024.

• This marked increase from £10.6 million ($13.5 million) in Q2 2023 underscores the growing demand for CoinShares’ investment products and their ability to expand market share in the digital asset realm.

CoinShares CEO Reflects on Q2

• Jean-Marie Mognetti, CEO of CoinShares, described Q2 as an eventful quarter marked by positive developments in the asset management business, the successful sale of the FTX claim in Capital Markets, and a significant impairment in the Principal Investments portfolio.

Hot Take: CoinShares’ Resilience Shines Through Financial Challenges 💪

Despite facing obstacles like the FlowBank bankruptcy, CoinShares showcased resilience and adaptability in overcoming financial challenges and maintaining a strong financial performance in Q2 2024.

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