CoinShares International (CS) ABGSC Investor Days summary

Company overview and strategy

• Specializes in digital asset investment, aiming to expand from a European to a global leader.

• Manages $7 billion in client assets, with 40-45% European crypto ETP market share and 20 listed products.

• Operates four main platforms, including XBT Provider, CoinShares Physical, a joint venture with Invesco, and a growing U.S. franchise.

• Maintains a strong balance sheet of GBP 300 million and a lean team of 85 employees across four offices.

• Regulated in Europe and the U.S., with robust cybersecurity and audit practices.

Business model and revenue streams

• Focuses on three verticals: asset management, capital markets (R&D and innovation), and a developing hedge fund solution.

• Asset management generates management and staking fees based on AUM; capital markets revenue comes from trading spreads.

• Capital markets operates algorithmically, exploiting market inefficiencies without directional risk.

• Diversification of AUM sources has led to more stable and growing EBITDA, even in down markets.

• Margins benefit from operating cost advantages and pricing power, supported by strong custodian and exchange relationships.

Financial performance and growth

• EBITDA has grown from GBP 21 million in 2017 to GBP 76 million at Q3 2023, with projections to surpass GBP 100 million in 2024.

• Operates at approximately 70% margin, with scalability allowing AUM growth without proportional cost increases.

• Began paying quarterly dividends in 2024, rewarding shareholders for loyalty.

• Asset management and capital markets contribute roughly equally to EBITDA, with their share fluctuating year to year.