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CoinShares Reports Record Q1 2024 Revenue Following Bitcoin ETF Launch

CoinShares Reports Record Q1 2024 Revenue Following Bitcoin ETF Launch

  • Richard Nash, CFO of CoinShares, reported a 78% EBITDA margin for the quarter.
  • CoinShares’ asset management division accounts for about 45% of the overall gains.

The first quarter of 2024 was a record-breaking one for European asset management CoinShares, thanks to the rebound in markets after the introduction of Bitcoin ETFs. The period’s revenue for the firm was 19.5 million pounds ($24.5 million), up 216% from the first quarter of 2023. There was a total of 24.4 million pounds ($30.6 million) in gains and other revenue.

Compared to the year before, earnings before interest, taxes, depreciation, and amortization (EBITDA) increased fourfold to 34.2 million pounds ($43 million). Richard Nash, CFO of CoinShares, reported a 78% EBITDA margin for the quarter. He stated that the firm witnessed this margin in 2021, and it’s beginning to go back up again.

Substantial Gains

According to Nash, CoinShares’ asset management division accounts for about 45% of the company’s overall gains and other revenue. The capital markets account for 40%, and the company’s major investment portfolio accounts for the remaining 15%.

Totaling 19.5 million pounds ($24.5 million), the company’s management fees were the second-highest ever recorded, after only those collected in the fourth quarter of 2021. After the US SEC approved Bitcoin ETFs on January 12, CoinShares exercised their option to buy Valkyrie Funds.

A number of related products, such as the Valkyrie Bitcoin Miners and the Valkyrie Bitcoin Futures Leveraged Strategy ETFs, as well as the sponsor rights to Valkyrie Investments, an investment advice firm, and the spot Bitcoin ETF were all part of the transaction.

On March 12, the transaction was finalized. Goodwill, an accounting term for intangible assets acquired after an acquisition, amounted to around 1.6 million pounds ($2 million) for CoinShares after the transaction.

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