European asset manager CoinShares posted a record performance in the first quarter of 2024, driven by a recovery in markets since the debut of bitcoin exchange-traded funds (ETFs).
The company recorded revenues of 19.5 million pounds ($24.5 million) for the period, an increase of 216% compared to the first quarter of 2023. Gains and other revenues amounted to 24.4 million pounds ($30.6 million).
Earnings before interest, taxes, depreciation and amortization amounted to 34.2 million pounds ($43 million), compared to 7 million pounds ($8.8 million) in the previous year, a four-fold increase.
According to CoinShares CFO Richard Nash, EBITDA margin for the quarter was 78%. “This margin is starting to return to the levels we saw in 2021.”
Nash explained that approximately 45% of CoinShares' total gains and other revenues are generated through its asset management business, while 40% is derived from capital markets, and the remaining 15% comes from the company's primary investment portfolio.
The company recorded management fees totaling 19.5 million pounds ($24.5 million), the second highest level ever recorded, after fees recorded in the last quarter of 2021.
Valkyrie acquisition
CoinShares exercised an option to acquire Valkyrie Funds on January 12, following the US Securities and Exchange Commission (SEC) approval of Bitcoin ETFs.
The acquisition included sponsorship rights to Valkyrie's spot Bitcoin ETF, investment advisory firm Valkyrie Investments, and sponsorship rights to several similar products, including the Valkyrie Bitcoin Miners ETF (WGMI) and the Valkyrie Bitcoin Futures Leveraged Strategy ETF (BTFX). .
The deal was completed on March 12. According to CoinShares, the acquisition added approximately £1.6 million ($2 million) of goodwill to its balance sheet – an accounting term that represents intangible assets during an acquisition.
CoinShares' total assets under management as of March 31, 2024 were £4.77 billion ($6 billion). “Increases across the board, in conjunction with the acquisition of Valkyrie,” the earnings report said.
According to CoinShares CEO Jean-Marie Mugnitti, Valkyrie's acquisition is in line with its plans to become a leading global investment firm specializing in digital assets. “The US market represents 50% of global assets under management and provides a unique opportunity for CoinShares in terms of growth.”
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