CoinShares International (CS) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked the 14th quarter as a public company, with stable performance, record EBITDA of £15.4m (up 86% YoY), and positive ETP flows, especially for Bitcoin products, amid a dynamic macro environment.

• Transitioned accounting standards from UK GAAP to IFRS, now recording digital asset movements at fair value through profit and loss, enhancing transparency and comparability.

• Initiated Bitcoin as a treasury management instrument, holding 78 BTC at quarter-end, now increased to 108 BTC.

• European crypto ETPs saw a dramatic turnaround with GBP 400 million in net inflows, and the U.S. Valkyrie business line posted over $53 million in net flows.

• Asset Management fees from ETPs and Index averaged £20.6m per quarter in 2024, the highest in company history.

Financial highlights

• Q3 combined revenue, gains, and other income reached £25.8m; year-to-date top line at £78.5m, surpassing full-year 2023.

• Q3 EBITDA was £15.4m, maintaining a strong margin year-over-year; YTD EBITDA at £76.3m, a 189% increase over 2023.

• Q3 net profit was £14.2m, more than double the prior year; YTD net profit at £72.4m.

• Total management fees for Q3 were £19.9m; year-to-date £61.8m.

• Net flow and price movements led to a decrease in AUM from £4.19bn to £3.82bn, though AUM is up 26.6% since the start of the year.

Outlook and guidance

• Anticipates an eventful 2025, with expectations for increased liquidity provisioning revenues and continued strong staking performance.

• U.S. regulatory developments and election outcomes seen as key factors for product expansion and differentiation.

• Aims to cross $1 billion AUM in the U.S. by year-end; U.S. business line integration is nearly complete.

• Expects continued solid Asset Management fees, with further diversification reducing reliance on XBT Provider.

• Anticipates favorable environment for Bitcoin and digital assets due to macroeconomic trends and Fed rate cuts.