CoinShares, a European asset manager, reported a 65% drop in its fourth quarter revenue for 2022, amounting to £14.5 million. This was due to the collapse of the Terra ecosystem tokens in the second quarter of 2022, and nearly $30 million of its assets being stuck in the crypto exchange FTX which filed for bankruptcy in November. The company’s total comprehensive income for the full year 2022 fell by over 97% to £3 million.
In response to the market turbulence, CoinShares shifted its focus to its core business units of Asset Management and Capital Markets, and shut down its Consumer Platform. Despite the setbacks, the company’s Chief Executive Officer Jean-Marie Mognetti asserted that the group’s “financial health remained solid”. CoinShares successfully graduated to Nasdaq Stockholm’s main market where it was currently trading at 33.20 Swedish Krona.
The asset manager anticipates the arrival of institutional players in the second half of 2024 with the advent of regulations in Europe, the US, and the UK. This is expected to coincide with the next Bitcoin halving cycle. Mognetti believes that CoinShares offers a familiar risk policy to traditional financial players and a commitment to providing a secure and regulated investment experience for the long term. This could be a potential game changer for the company and the industry as a whole.