The profits of CoinShares are difficult to make due to the FTX collapse: Q4 report

The profits of CoinShares are difficult to make due to the FTX collapse: Q4 report

Despite the market turbulence caused by collapse and fraud, Jean-Marie Mogetti, Chief Executive Officer from Coinshares assured that the "financial health of the group remained solid". However, his income has suffered a difficult blow.

Coinshares published the report for the fourth quarter of 2022, in which it recorded £ 14.5 million in combined income, winning and other income. This was a massive decline of 65 % compared to the fourth quarter of 2021, when the European asset manager generated sales of £ 41.9 million.

ftx and terra blows on Coinshares

Coinshares lost over 21 million US dollars due to the collapse of the tokens of the Terra ecosystem in the second quarter of 2022. After it had returned to the profit zone in the next quarter, it had to cope with another blow. This time it was FTX. The company stated that its performance was significantly impaired, since almost $ 30 million of his assets were in the crypto exchange, the customer withdrawals in November Invested before it registered bankruptcy.

The income, profits and other income were booked for the entire year 2022 with £ 72.6 million, which corresponds to a reduction by more than half since the previous financial year than it brought in

The overall result of the company for the year 2022 also decreased by over 97 % to £ 3 million, since £ 113.4 million were recorded last year, as the quarterly result report showed. Mogneti continued,

"The breakdowns and frauds that the industry hit in 2022 have brought the market a newly discovered feeling of caution, since investors are now looking for trustworthy, regulated institutional actors. As a solution to these problems, Coinshares traditional financial players offer a familiar risk policy and the obligation to get a safe and regulated investment in the long term offer. “

changing landscape

CoinShares announced the closure of his consumer platform due to the mild market conditions in the fourth quarter. Therefore, the income generated in the same period was minimal, whereupon the company shifted its focus on its core business areas asset management and capital markets.

The CEO said that the collapse of the FTX had changed the landscape significantly, which also affected the investment level, which was necessary to support HAL, the algorithmic trading platform, which was introduced last September.

Despite the setbacks, Mogneti explained that Coinshares had remained "financially robust" and completed the year with the successful move to the main market of Nasdaq Stockholm, where it was currently traded at 33.20 Swedish crowns.

The asset manager expects the arrival of institutional actors in the second half of 2024 with the emergence of regulations in Europe, the USA and Great Britain. This is expected to coincide with the next Bitcoin thermalization cycle.

.