European asset manager CoinShares has posted record results for the first quarter of 2024, buoyed by market recovery following the launch of its Bitcoin exchange-traded fund (ETF). The company reported revenue of £19.5 million ($24.5 million) during the period, marking a substantial 216% increase from the first quarter of 2023. Earnings and other income reached £24.4 million ($30.6 million).
Earnings before interest, tax, depreciation, and amortization (EBITDA) soared to £34.2 million ($43 million), a significant leap from £7 million ($8.8 million) recorded the previous year, reflecting a four-fold increase. CoinShares’ Chief Financial Officer Richard Nash noted that the EBITDA margin for the quarter stood at an impressive 78%, indicating a return to levels seen in 2021.
Approximately 45% of CoinShares’ total earnings and other revenue are derived from its asset management business, with 40% coming from capital markets, and the remaining 15% from the company’s primary investment portfolio. Management fees amounted to £19.5 million ($24.5 million), marking the second-highest on record after fees recorded in the fourth quarter of 2021. CoinShares exercised its option to acquire Valkyrie Funds on January 12, following SEC approval of a Bitcoin ETF.
The acquisition encompassed sponsorship rights for the Valkyrie Spot Bitcoin ETF, the investment advisory business Valkyrie Investments, and sponsorship rights for various similar products, including the Valkyrie Bitcoin Miner and the Valkyrie Bitcoin Futures Leveraged Strategy ETF. The transaction concluded on March 12, contributing approximately £1.6 million ($2 million) in goodwill to CoinShares’ balance sheet during the acquisition period.
As of March 31, CoinShares boasted total assets under management of £4.77 billion ($6 billion), marking a notable 58% increase since the end of 2023. This growth was attributed to the performance of the broader industry in the first quarter of 2024, coupled with the significant price appreciation across various assets following the Valkyrie acquisition. CoinShares’ CEO Jean-Marie Mognetti emphasized that the acquisition aligns with the company’s strategic vision to emerge as a leading global investment firm specializing in digital assets, particularly in the lucrative U.S. market, which accounts for 50% of global assets under management and presents a unique growth opportunity for CoinShares.
