CoinShares International (CS) Q2 2024 earnings summary

Executive summary

• Q2 2024 saw strong performance, with revenue of £22.5m, robust inflows into spot Bitcoin ETPs, and positive regulatory developments globally, including the approval of spot Ethereum ETPs in the US and ETFs in Hong Kong.

• Adjusted EBITDA reached £26.6m, a 133% increase compared to Q2 2023, with year-to-date Adjusted EBITDA at £60.8m.

• The quarter was marked by the full impairment of FlowBank and the successful sale of the FTX claim, both materially impacting results.

• Asset Management expanded with strong inflows into CoinShares Physical products and the first full quarter of Valkyrie fee contributions.

• The company remains focused on cost control, product innovation, and rewarding shareholders with an exceptional dividend.

Financial highlights

• Combined Q2 revenue, gains, and other income were £37.6m, with topline at £30.6m excluding FlowBank impairment.

• Adjusted EBITDA for Q2 was £26.6m, with year-to-date top-line at £52.8m, well ahead of 2023's £32.5m for the same period.

• Total comprehensive income for Q2 was £25.8m, bringing YTD to £59.9m, surpassing full-year 2023.

• Management fees from asset management were £22.4m, the second highest on record.

• The FTX claim sale yielded £31.32m in exceptional revenue, with a 116% recovery rate.

Outlook and guidance

• Management expects continued strong performance, aiming to surpass previous records by year-end, supported by product inflows and diversification.

• The company expects continued growth in Asset Management, with further product innovation and expansion in the US and Europe.

• Net outflows from legacy CoinShares XBT Provider are expected to stabilize, while new products are anticipated to drive inflows.

• The special dividend from the FTX claim sale will be distributed with the regular dividend in October 2024.

• The company remains committed to balancing shareholder returns with ongoing innovation and expansion.