CoinShares Shows Modest Recovery from Terra Collapse in Q3 2022 Earnings

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by Bhushan Akolkar · 3 min read
CoinShares Shows Modest Recovery from Terra Collapse in Q3 2022 Earnings
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During the third quarter, CoinShares showed a modest recovery in revenue by delivering a resilient performance despite recent and residual turbulence in the digital asset space.

On Monday, October 31, crypto fund manager CoinShares shared its earnings report for the third quarter (Q3) of 2022. During Q3, the company showed a marked improvement in revenue after it dealt with a heavy blow from Terra’s collapse in Q2.

CoinShares in Q3 2022

The collapse of the Terra ecosystem in May 2022 led to a 128% drop in CoinShares’ revenue. The company reported £6.4 million in EBITDA earnings, adjusted earnings before interest, taxes, depreciation, and amortization. This was still down from the earnings of £26.1 million a year ago.

At £240.6m, the company’s net asset position is up by 20% year-to-date. CoinShares said that they have undergone a series of strategic developments to recuperate from the losses. In September, the company acquired Napoleon Asset Management, the first AIFM-regulated crypto asset manager in Europe. Jean-Marie Mognetti, Chief Executive Officer of CoinShares said:

“We are pleased to announce our resilient performance during the quarter, returning to profitable growth despite recent and residual turbulence in the digital asset space. We continue to generate strong and stable revenues within our Asset Management business unit, which is in turn being supported by additional income and gains from our Capital Market’s activities. CoinShares continues to be well-equipped to navigate recent external market turbulence thanks to our resilient strategy which demonstrates the strength of our business model.”

CoinShares Algorithmic Trading Tool for Retail Investors

Back in September this year, CoinShares also launched an algorithmic trading tool for retail investors. This launch came soon after the acquisition of Napolean Asset Management.

CoinShares’ algorithmic trading tool HAL seeks to make crypto trading easier by offering all users of exchanges access to trading algorithms designed by CoinShares’ quants. CoinShares stated that HAL would integrate with some of the major crypto exchanges ahead. The launch of HAL is part of the company’s long-term plan to improve the crypto trading experience for its customers. HAL will cost retail investors €19.90, or $19.88 per month.

Earlier this month, CoinShares also launched a Twitter bot to help NFT investors. The CoinSharesNFTAI bot will help to cut through the noise of NFTs thus protecting investors from any frauds, hypes, and scams. Twitter users can twit this bot with a link to their OpenSea NFT and use the hashtag CoinShares. During the release, CEO Jean-Marie Mognetti said:

“CoinShares’ aim is to bring more transparency to the space. NFTs are the newest asset to come to crypto markets and it’s important that everyone feels comfortable buying and selling them. To this end, we made our proprietary NFT pricing algorithm available to the public through our CoinSharesNFTAI Twitter bot”.

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