CoinShares posts highest quarterly profit since Q1 2022

Cryptocurrency investment group CoinShares recently released its Q1 earnings report for 2023 amid what it calls a “return to profitability.”

Highlights of the report include revenue of $11.73 million (down from $22.46 million in the first quarter of 2022), total income of $3.62 million (down from $25.83 million in the first quarter of 2022) and adjusted earnings before interest, taxes, depreciation and amortization. (EBIDTA) of $10.61 million (down from $25.83 million in Q1 2022).

Overall, CoinShares posted an operating loss of $25.21 million for 2022, in stark contrast to the company’s operating profit of $126.54 million reported for 2021.

Despite the market conditions, CoinShares has achieved an important milestone by returning to profitability in the first quarter of 2023.

Amid a complex landscape, we generated £15.3 million in revenue and profits, demonstrating our resilience.

Discover our Q1 report: pic.twitter.com/XBaGPBgf9I

— CoinShares (@CoinSharesCo) May 16, 2023

According to the report, this comes after a tumultuous period for the company and the cryptocurrency industry as a whole:

In Q1 2023, as in 2022, the financial and crypto industries faced a challenging and complex landscape. Against this backdrop, CoinShares showed strong resilience. During the quarter we generated revenues and profits of £15.3m and successfully returned to profitability with an adjusted EBITDA of £8.5m. This resulted in an Adjusted EBITDA margin of 55%.

The report cites the recent collapse of “crypto-friendly banks like Silvergate and Signature” and regulatory oversight surrounding FTX’s “dramatic decline” as revenue softening factors, indicating earnings may have been reduced by the looming specter of government oversight.

CoinShares appears cautiously optimistic for the future, stating that “we welcome this additional regulatory activity, but hope it does not turn into a witch hunt or become a result of cryptopoliticization ahead of the US election, as some commentators have speculated.”

The earnings report comes right on the heels of CoinShares’ “Digital Asset Fund Flows Report,” which, as Cointelegraph reported, revealed digital asset investment product outflows totaled $54 million this week, meaning a lot of transferring. from the stock exchange to portfolios.

According to CoinShares, recent trends toward outflows can be attributed at least in part to consumer and industry speculation regarding US federal rate hikes. As mentioned in a previous Cointelegraph report, such speculation may be a contributing factor to Bitcoin’s (BTC) recent volatility.