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CoinShares International Limited (“CoinShares” or “the Company”) (Nasdaq Stockholm: CS; US OTCQX: CNSRF), CoinShares, the leading European digital asset manager, has released its results for the quarter ending 31st December 2022.
Jean-Marie Mognetti, Chief Executive Officer of CoinShares said:
“We are pleased to announce that, despite the challenges faced in the last quarter, the firm has remained financially robust and is proud to have closed the year by graduating to Nasdaq Stockholm's main market.
After returning to profitability in Q3, CoinShares, as announced on 22nd November, was dealt a blow with the collapse of FTX in Q4. As previously disclosed, at the time FTX halted withdrawals, £26 million of our assets remained there. While the Group’s financial health remained solid, providing for these amounts in full has understandably impacted on our financial performance for both Q4 and 2022 as a whole.
We move into 2023 with clear goals that we are looking to achieve. We remain committed to expanding our digital asset management business and are looking at opportunities to become a global player. We are refocusing on our core competencies, meaning digital asset management and institutional, knowing that the big institutional players will come in 2024 after further clarification of regulations.”
Q4 2022 financial highlights
- Q4 revenue, gains and other income of £14.5 million (Q4 2021: £41.9 million)
- Full year revenue, gains and other income of £72.6 million (FY 2021: £151.8 million)
- Q4 adjusted EBITDA of negative £23.5 million (Q4 2021: positive £32.1 million)
- Full year adjusted EBITDA of negative £6.5 million (FY 2021: positive £121.1 million)
- Total comprehensive income for Q4 2022 of negative £37.0 million (Q4 2021: income of £28.6 million)
- Total comprehensive income for the full year 2022 of £3.0 million (FY 2021: £113.4 million)
Q4 2022 operational highlights
- Important steps taken towards the Group’s long-term strategy, including uplisting to the Nasdaq Stockholm Main Market. The Group’s first day of trading commenced on 19th December 2022, marking the successful end to a process that the whole Group worked tirelessly towards.
- Despite wider market conditions which resulted in many of our competitors in the ETP space experiencing Q4 outflows, CoinShares Physical recorded $17.2 million in inflows.
- The difficult but necessary decision taken to wind down the CoinShares Consumer Platform. Market conditions in a post FTX environment, gave rise to a situation that did not allow us, with our existing capital structure, to support a consumer activity that required significant upfront investment in marketing.
- We did not circumvent FTX’s bankruptcy unscathed. At the time FTX halted withdrawals from its exchange, £26 million of our assets remained there. Following FTX’s declaration of bankruptcy it is entirely uncertain when or how much, if any, we will be able to recover. Consequently we wrote off our entire exposure as a conservative measure.
For the full CoinShares Q4 report, click this link.
