CoinShares posts highest quarterly earnings since Q1 2022

Cryptocurrency investment group CoinShares recently published its first quarter earnings report for 2023 amid what it’s calling a “return to profitability.” 

Highlights of the report include revenue in the amount of $11.73 million (down from $22.46 million in Q1 2022), total comprehensive income of $3.62 million (down from $25.83 million in Q1 2022) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $10.61 million (down from $25.83 million in Q1 2022).

Overall, for 2022, CoinShares posted an operating loss of $25.21 million, in stark contrast to the company’s operating profit of $126.54 million reported for 2021.

Per the report, this comes after a tumultuous period for the company and the cryptocurrency industry as a whole:

“In Q1 2023, as in 2022, the financial and crypto industries faced a challenging and complex landscape. Against this backdrop CoinShares demonstrated a powerful resilience. During the quarter we generated revenue and gains of £15.3 million and successfully returned to profitability, with Adjusted EBITDA of £8.5 million. This resulted in an Adjusted EBITDA margin of 55%.”

The report cites the recent collapse of “crypto friendly banks such as Silvergate and Signature” and regulatory scrutiny surrounding FTX’s “dramatic decline” as mitigating factors for the earnings, indicating profits may have been diminished by the looming specter of government oversight.

CoinShares appears cautiously optimistic going forward, stating that “we welcome this additional regulatory activity but hope it does not devolve into a witch hunt or become a consequence of crypto politicisation ahead of the U.S. elections, as some commentators have speculated.”

The earnings report comes directly on the heels of CoinShares’ “Digital Asset Fund Flows Report,” which, as Cointelegraph reported, revealed that digital asset investment product outflows totaled $54 million for the week, meaning that much was transferred from the exchange to wallets.

According to CoinShares, the recent trends toward outflows can at least be partially blamed on consumer and industry speculation related to United States federal interest rate hikes. As mentioned in a previous Cointelegraph report, such speculation may be a contributing factor to recent Bitcoin (BTC) volatility.

All Dutch and English crypto news!

Crypto ATMs to resurge once Bitcoin ‘FOMO’ hits full swing, says CEO

Crypto ATM installs declined in 2023, but a post-halving Bitcoin price growth spurt should see the space rebound, says Brandon Mintz. Interview Own this piece of crypto...

KuCoin’s desperate $10M airdrop, 1 tweet raises $37M for memecoin: Asia Express

Our weekly roundup of news from East Asia curates the industry’s most important developments. KuCoin airdrops $10 million after U.S. SDNY indictment  Cryptocurrency exchange is airdropping $10...

How high can Bitcoin go? New BTC price prediction sees cycle top at $180K

BTC price can more than double in price this cycle, thanks to Bitcoin ETFs, next month's halving, and easing monetary conditions. Markets News Own this piece of...

Abra settles with fifth state as US operations may be winding down

The platform was part of a targeted campaign by state regulators and promised to stop U.S retail operations last summer. News Own this piece of crypto history Collect...

Beste exchanges

Koop je crypto bij Bitvavo