CoinShares reports earnings gain amid crypto market resurgence

European crypto asset manager CoinShares has published its interim Q3 financials.

The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose to £88.8 million ($120.2 million) in the period, up from £62.8 million ($85 million) in the previous quarter.

For the whole of 2020, CoinShares’ adjusted EBITDA was £22.1 million ($29.9 million). According to the filing, the Q3 results have positioned the company for its strongest-ever performance over a nine-month period.

The continuation of the firm’s positive financial performance in Q3 comes as the cryptocurrency market posted significant value recovery after a 50% decline in May.

“This performance demonstrates our business model’s resilience and ability to scale; we continue to take advantage of the evolution seen in the wider industry and translate it into total comprehensive income and balance sheet growth,” said Jean-Marie Mognetti, CoinShares’ CEO.

The firm’s performance is also indicated in the company’s earnings from management fees with £55.1 million recorded in the filing — almost three times the size of the revenue collected from fees in 2020.

Institutional inflow into crypto investment positions has been on the rise in 2021 with more big-money players allocating funds to cryptocurrency products.

CoinShares’ assets under management (AUM) also grew in Q3 with and stands at £2.9 billion ($3.9 billion) as of the period ending September 30. The company’s AUM at the end of 2020 stood at £1.7 billion ($2.3 billion).