CoinShares, the European asset management firm, experienced a remarkable first quarter in 2024. Thanks to the introduction of Bitcoin ETFs and the subsequent market rebound, the company achieved record-breaking results. In this period, CoinShares generated £19.5 million ($24.5 million) in revenue, marking a 216% increase from the same quarter in 2023. The gains and other revenue reached a total of £24.4 million ($30.6 million).
Notably, the earnings before interest, taxes, depreciation, and amortization (EBITDA) skyrocketed fourfold to £34.2 million ($43 million) compared to the previous year. Richard Nash, the CFO of CoinShares, reported an impressive 78% EBITDA margin for the quarter. He highlighted that the firm had previously achieved this margin in 2021 and is now witnessing its resurgence.
Nash revealed that CoinShares’ asset management division contributed approximately 45% of the company’s overall gains and other revenue. The capital markets accounted for 40%, while the remaining 15% came from the company’s major investment portfolio.
The management fees, reaching a total of £19.5 million ($24.5 million), were the second-highest ever recorded, only surpassed by the fourth quarter of 2021. CoinShares took advantage of the US Securities and Exchange Commission’s approval of Bitcoin ETFs on January 12 and exercised their option to acquire Valkyrie Funds.
The transaction included various related products, such as the Valkyrie Bitcoin Miners, Valkyrie Bitcoin Futures Leveraged Strategy ETFs, sponsorship rights to Valkyrie Investments (an investment advice firm), and the spot Bitcoin ETF. The finalization of the transaction occurred on March 12, resulting in CoinShares recognizing £1.6 million ($2 million) in goodwill, representing intangible assets acquired through the acquisition.
Today’s highlighted cryptocurrency news focuses on Solana (SOL) price, which is currently at a crucial juncture. Bulls and bears are gearing up for a decisive battle, with the outcome expected to have a significant impact on the market.
