CoinShares delivers strongest interim financial results in the Group's history
SAINT HELIER, Jersey, Aug. 5, 2021 /PRNewswire/ -- CoinShares International Limited (Nasdaq First North Growth Market: CS) ("CoinShares", the "Group" or the "Company") today released its interim financial results for the six months ended 30 June 2021.
Total comprehensive income of £58.7 million. (H1 2020: £10.4 million, FY2020: £18.4 million).
Adjusted EBITDA of £62.8 million, achieving a margin of 85%. (H1 2020: £8.6 million / 58%, FY2020: £22.1 million / 63%).
Management fees generated by the Group's Asset Management Platform of £36.7 million. (H1 2020: £6.7 million, FY2020: £18.4 million).
Income and gains generated by the Group's Capital Markets of £37.4 million (H1 2020: £8.0 million, FY2020: £16.8 million).
Fair value gains on Principal Investments of £4.1 million. (H1 2020: £0.4 million, FY2020: £1.0 million).
Assets under Management ("AUM") as at 30 June 2021 of £2.2 billion. (31 December 2020: £1.7 billion).
Net asset position of the Group as at 30 June 2021 of £128.3 million. (31 December 2020: £56.5 million).
Commenting on today's results, Jean-Marie Mognetti, Chief Executive Officer of CoinShares stated, "Following an exceptionally strong Q1 report, we have built on that momentum and reported the strongest Q2 in our Group's history. This was accomplished despite the market volatility and digital asset price erosion reinforcing our view that CoinShares, Europe's largest and longest standing Digital Asset Firm, is much more than a beta play on digital assets. Our Asset Management Platform business increased over 99% and our Capital Markets Infrastructure business increased over 122%, compared to 2020 year-end and significantly higher year-on-year. This strong performance led to an EBITDA improvement of 184% compared to 2020 year-end, in only a six-month period. With the new products brought to market, new exchange listings and new alliances formed, coupled with our acquisition of the ETF business from Elwood Technologies, we are well positioned to keep improving the earnings power of our Company."
Mr. Mognetti continued, "We are now in what I believe is the best corporate and financial position we have ever been in and have a lot of exciting opportunities ahead to improve our business and drive shareholder value."
2021 Interim Financial Results Summary
Following the Group's record Q1 results as announced on 24 May 2021, CoinShares has achieved a record Q2, resulting in the strongest interim performance in the Group's history. This performance has been primarily driven by Bitcoin and Ethereum prices reaching all-time highs in April and May 2021, respectively. This has resulted in increased management fees across the Group's Asset Management Platform.
The volatility that accompanied these price increases, and the subsequent volatility of the declines seen in the latter part of May, continuing into June, resulted in market conditions that the Group was able to benefit from. Delta neutral trading strategies, fixed income activities and liquidity provisioning for the Company's own products all contributed to the strong performance of the Group's Capital Markets Infrastructure.
2021 Interim Commercial and Operational Highlights
Expanded our footprint into the equities market with the acquisition of the ETF index business from Elwood Technologies, as announced on 6 July 2021, establishing a partnership with Invesco to further bridge the gap between traditional asset management and cryptocurrencies, whilst broadening both firms' connectivity with global institutional investors and allocators.1
Reached record trading volumes across our two ETP platforms on 19 May 2021, with more than $490m in CoinShares ETPs changing hands in a single day, being the highest volume of any European crypto ETP provider.2 These volumes demonstrated the robustness of the CoinShares Asset Management platform, which continued to operate seamlessly during volatile periods when several crypto exchanges halted trading.
On 7 June 2021, CoinShares announced that three of its physically backed ETPs (CoinShares Physical Bitcoin, Ethereum and Litecoin ETPs) cross-listed on Germany's Börse Xetra exchange.3
This was followed on 21 June 2021 with an exclusive crypto ETP platform partnership with Finanzen.net, the largest platform for German-language financial and investment news. As a result of the partnership, CoinShares will be the sole provider of physically-backed crypto products on the newly launched investment platform finanzen.net "zero".4
Collaborated with 3iQ to launch the 3iQ CoinShares Bitcoin ETF5 and Ether ETF6 which are both publicly listed on the Canadian market.
CoinShares and the DeFi Alliance extended their partnership, launching a new chapter in Europe with CoinShares serving as a founding partner.7 This alliance brings together other leading European crypto companies with a vision of supporting European DeFi startups with capital and liquidity and collaboration with partners to build a robust DeFi ecosystem in Europe.
Partnership with Blockdaemon, the leading institutional crypto infrastructure provider and largest independent blockchain infrastructure platform, to build staking and blockchain networking infrastructure into its larger trading and asset management platform.7
Strategic investment into a new ESG-focused investment management company in the United States, Viridi Funds.8 The Viridi Cleaner Energy Crypto-Mining & Semiconductor ETF (NYSE: RIGZ) commenced trading on 20 July 2021.
The Company will hold a webcast on Thursday, 5 August 2021 at 3:00 pm BST (10:00 am ET) to discuss the results for the second quarter and interim period ending 30 June 2021. The live webcast of the earnings conference call can be accessed on the investor relations section of the CoinShares website at http://coinshares.com/investor-relations. A replay of the webcast will be available online approximately 2 hours following the live call for a period of 30 days.
About the CoinShares Group
CoinShares is Europe's largest digital asset investment firm, managing billions of assets on behalf of a global client base. Our mission is to expand access to the digital asset ecosystem by pioneering new financial products and services that provide investors with trust and transparency when accessing this new asset class. CoinShares is publicly listed on the Nasdaq First North Growth Market under ticker CS.
This information is information that CoinShares International Limited is obliged to make public pursuant to the EU Market Abuse Regulation 596 / 2014. The information in this press release has been published through the agency of the contact persons set out above, at 8:00 am BST on Thursday, August 5 2021.
Forward looking statements The report contains certain forward-looking statements and opinions. Forward looking statements are statements that do not relate to historical facts and events, and such statements and opinions pertaining to the future that, for example, contain wordings such as "believes", "estimates", "anticipates", "expects", "assumes", "forecasts", "intends", "could", "will", "should", "would", "according to estimates", "is of the opinion", "may", "plans", "potential", "predicts", "projects", "to the knowledge of" or similar expressions, which are intended to identify a statement as forward-looking. This applies, in particular, to statements and opinions in the report concerning future financial returns, plans and expectations with respect to the business and management of the Company, future growth and profitability, and the general economic and regulatory environment, and other matters affecting the Company.
Forward-looking statements are based on current estimates and assumptions made according to the best of the Company's knowledge. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the actual results, including the Company's cash flow, financial position, and operating profit, to differ from the information presented in such statements, to fail to meet expectations expressly or implicitly assumed or described in those statements or to turn out to be less favourable than the results expressly or implicitly assumed or described in those statements. Accordingly, prospective investors should not place undue reliance on the forward-looking statements contained herein and are strongly advised to read the entire report. The Company cannot give any assurance regarding the future accuracy of the opinions set forth herein or as to the actual occurrence of any predicted developments.
In light of the risks, uncertainties and assumptions associated with forward-looking statements, it is possible that the future events mentioned in the report may not occur. Moreover, the forward-looking estimates and forecasts derived from third party studies referred to in the report may prove to be inaccurate. Actual results, performance or events may differ materially from those presented in such statements due to, without limitation, changes in general economic conditions, in particular economic conditions in the markets in which the Company operates, changes affecting interest rate levels, changes affecting currency exchange rate, changes in levels of competition and changes in laws and regulations.