By
Temitope Olatunji
April 16th, 2024
CoinShares said it did a thorough review of its risk management procedure in Q2 2022.
Europe’s largest digital asset manager CoinShares has announced financial results for Q2 2022, revealing a 128% fall in adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The asset manager lost more than $21 million due to the de-pegging and eventual collapse of the TerraUST (UST). According to the quarterly reports, CoinShares said adjusted EBITDA in Q2 2022 was negative £8.112 million. Meanwhile, the company announced a positive EBITDA of £28.6 million in the same period of the previous year.
CoinShares Q2 2022 Financial Performance
Total revenue, £19.6 million in Q2 2021, also came in lower YoY at £14.4 million. The company recorded a one-off loss of £177.7 million from the liquidation of its holdings in Terra. The total comprehensive loss for the quarter was £0.1 million, while there was an income of £26.6 million in Q2 2021.
CoinShares CEO Jean-Marie Mognetti commented on the Q2 2022 performance, saying:
“In light of the market turmoil we have reviewed our risk profile and moved into a more defensive mode. We have commenced taking steps to reduce both our cost base and various exposure across the group and this conservative approach will enable us to preserve our capital, ready to take advantage of opportunities in the digital asset space as they emerge.”
Notably, CoinShares launched five new Physical products in the second quarter. They include CoinShares Physical FTX Token, CoinShares Physical Chainlink, and CoinShares Physical Uniswap. Others are CoinShares Physical Staked Matic and CoinShares Physical Staked Cosmos.
CoinShares’ Recent Growth
Also, CoinShares said it did a thorough review of its risk management procedure in Q2 2022. It added that it also improved its trading platform for enhanced transparency after TerraUST crumbled. More so, the asset manager, completed its acquisition of Napoleon Asset Management. The company agreed to buy Napoleon Crypto SAS’s total issued capital for $14.5 million in November last year. Upon purchase, CoinShares can offer AIFMD-compliant products and services. The CEO said CoinShares continues to expand despite the current market condition. According to him, the bear market is an opportunity to solidify its position and develop new products and services. Exchange Traded Products, Capital Market, and Index Strategies are some of the company’s products and services. Mognetti added that the acquisition of Napoleon Asset Management opens up a “wealth of new development opportunities.”
According to Mognetti, CoinShares can manage this volatile time due to its effective strategy. He added that the asset manager has sufficient resources, including a robust balance sheet and an experienced world-class team.