CoinShares Records 216% Revenue Spike in Q1 2024, Bolstered by Bitcoin ETFs & Valkyrie Acquisition
Summary:
In Q1 of 2024, European asset manager CoinShares reported a 216% increase in revenue (amounting to £19.5 million, or $24.5 million), spurred by the market's recovery following the introduction of Bitcoin ETFs. This period also saw a record EBITDA of £34.2 million ($43 million), a fourfold increase from the previous year. A notable part of CoinShares' recent activities was the acquisition of Valkyrie funds, following the SEC's approval of Bitcoin ETFs. The firm's total assets under management as of March 31, 2024, were £4.77 billion ($6 billion), a 58% increase from the end of 2023 due to broad industry growth and the Valkyrie acquisition.
In Q1 2024, CoinShares, a prominent European asset manager, witnessed an unprecedented growth in performance spurred by market revival following the inception of Bitcoin exchange-traded funds (ETFs). The firm reported a 216% jump in income, amounting £19.5 million ($24.5 million) relative to Q1 2023. Further gains and miscellaneous income summed up to be £24.4 million ($30.6 million). The company noted a significant increase in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA), ballooning to £34.2 million ($43 million) from £7 million ($8.8 million) in the previous year, a fourfold rise. Richard Nash, CFO of CoinShares, reveals that the EBITDA margin for the quarter stood at 78% and is reverting to the levels experienced in 2021.
Around 45% of CoinShares' aggregate earnings and other revenue stream is churned from its asset management sector, with 40% derived from capital markets. The residual 15% comes from the firm's primary investment portfolio, as elucidated by Nash. The firm reported a £19.5 million ($24.5 million) management fee record which stands as the second highest in its history, only surpassed by the fees in 2021's Q4.
Regarding the acquisition of Valkyrie funds, CoinShares exercised this option on January 12, following the greenlighting of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC). This purchase encompasses all from the sponsor rights to Valkyrie’s spot Bitcoin ETF, to Valkyrie Investments' advisory business, to the sponsor rights of similar products like Valkyrie Bitcoin Miners (WGMI) and Valkyrie Bitcoin Futures Leveraged Strategy (BTFX) ETFs.
The completion of this deal added about £1.6 million ($2 million) of goodwill to CoinShares' balance sheet—an accounting concept referring to intangible assets during an acquisition phase.
As of March 31, 2024, CoinShares governed total assets worth £4.77 billion ($6 billion). According to CoinShares' financial statement, "The AUM (Assets Under Management) figure has risen 58% since the close of 2023, this is credited to a strong general industry performance in Q1 2024, witnessing widespread price hikes, and the acquisition of Valkyrie."
Jean-Marie Mognetti, CoinShares CEO, mentioned that the acquisition of Valkyrie falls in line with the company's strategic goal to secure a reputable position in the global digital asset investment domain. Mognetti said, "The U.S. market, holding 50% of the global assets under management, offers CoinShares an unparalleled opportunity for expansion.
Published At
5/14/2024 7:16:29 PM
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