In the midst of the crypto market downturn, CoinShares’ Q1 financial results took a hit Last year’s epic crypto bull run helped crypto companies thrive, many beyond expectations. The current landscape is sluggish, however, CoinShares, a prominent digital asset management company, announced interim results for the first quarter 2022.
According to the official press release, the firm’s total revenue during the first three months of 2022 has shrunk to £27.96 million ($35 million) from the previous year’s £39.91 million ($50 million), a decrease of 42%. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) also slumped by more than 45% in the first quarter of the year, recording £18.7 million compared to £34.2 million a year ago. CoinShares’ total comprehensive income took a hit from £32.1 million in the same quarter last year to £20.2 million in Q1 2022. Assets under management (AUM) for the European firm as of 31st March 2022 came down to £3.07 billion, a 10% decline since 31st March 2021. At the end of the period, the AUM for Blockchain Global Equity Index (BLOCK Index) stood at £0.88 billion. Jean-Marie Mognetti is Chief Executive Officer at CoinShares. He commented on Q1’s results. “We delivered resilient EBITDA of £18.7 million, all while making considerable steps to advance our long-term strategy. This includes work towards our imminent uplisting to Stockholm’s main market, significantly growing our headcount, including a new Group Head of Marketing and a dedicated team to support the Group’s enlarged footprint, and integrating our consumer platform, Napoleon.” CoinShares also highlighted some of its operational highlights, including its long-term strategy. This includes its progressing plans for uplisting to the Nasdaq Stockholm Main Market. Within a little more than two years, the asset manager doubled its staff to 95 employees. Additionally, it recently announced increasing its stake in the online banking platform — FlowBank — the following receiving a green light from the Swiss Financial Market Supervisory Authority. As reported earlier, the increased investment will focus on facilitating growing digital asset exposure for FlowBank’s clients leveraging the CoinShares platform.