Richard Nash, the Chief Financial Officer (CFO) of CoinShares, announced a significant achievement with a 78% EBITDA margin for the quarter. CoinShares, a prominent European asset management firm, experienced a remarkable first quarter in 2024, driven by the resurgence of markets following the introduction of Bitcoin Exchange-Traded Funds (ETFs). The company’s revenue for the period reached 19.5 million pounds ($24.5 million), marking a substantial 216% increase compared to the first quarter of 2023. Additionally, CoinShares reported a total of 24.4 million pounds ($30.6 million) in gains and other revenue.
Comparing the current figures to the previous year, earnings before interest, taxes, depreciation, and amortization (EBITDA) quadrupled to 34.2 million pounds ($43 million). Richard Nash highlighted the impressive 78% EBITDA margin achieved in the quarter, reminiscent of the company’s performance in 2021 and indicating a positive trend.
CoinShares’ asset management division played a pivotal role, contributing approximately 45% of the company’s overall gains and other revenue. The capital markets segment accounted for 40%, while the remaining 15% came from the company’s major investment portfolio.
Notably, the company’s management fees reached a record-breaking 19.5 million pounds ($24.5 million), second only to the fees collected in the fourth quarter of 2021. CoinShares seized the opportunity to acquire Valkyrie Funds after the US Securities and Exchange Commission (SEC) approved Bitcoin ETFs on January 12. This transaction encompassed various related products, including the Valkyrie Bitcoin Miners, Valkyrie Bitcoin Futures Leveraged Strategy ETFs, sponsor rights to Valkyrie Investments (an investment advice firm), and the spot Bitcoin ETF. The deal was successfully concluded on March 12, with CoinShares recognizing goodwill of approximately 1.6 million pounds ($2 million) as intangible assets acquired through the acquisition.
In other crypto news, Solana (SOL) is currently at a critical juncture, as both bulls and bears gear up for a decisive battle.