CoinShares, a prominent crypto asset manager, reported a remarkable profit of £404 million ($513.1 million) for the second quarter of 2024, a significant increase from £10 million in the same quarter last year. The firm’s assets under management nearly doubled during the period, reflecting its robust performance and strategic expansion.
In its latest earnings report, CoinShares disclosed a substantial rise in profits after tax, marking a substantial improvement from the previous year’s figures. The firm’s total assets under management surged from $2.7 billion to $5.3 billion, underscoring its rapid growth and increased market share.
Despite the strong profit figures, CoinShares experienced a loss of $481.4 million on the fair value of digital assets due to a downturn in the crypto market. Bitcoin (BTC), the largest cryptocurrency by market capitalization, saw a 12% decline in Q2, its most significant drop since Q4 2022. This market pullback was reflected in the depreciation of digital assets held by CoinShares.
After accounting for this depreciation, the company’s comprehensive income for the quarter was $32.6 million, a notable increase from $6.3 million in Q2 2023. This comprehensive income figure highlights the firm’s ability to maintain profitability despite market challenges.
CoinShares also saw a substantial increase in asset management fees, which more than doubled to $28.45 million. This growth was bolstered by the acquisition of Valkyrie’s ETF unit, which provided CoinShares with a U.S. presence and expanded its exchange-traded product (ETP) business.
The strong financial performance has been well-received by investors, with CoinShares’ Stockholm-listed shares rising nearly 8.5% on the day to 56.60 Swedish krona ($5.43).
CoinShares’ impressive Q2 results reflect its strategic growth initiatives and resilience in navigating the volatile crypto market. The firm continues to strengthen its position in the industry as it expands its asset management capabilities and global reach.
