• CoinShares reports an increase in earnings as the cryptocurrency market recovers

  • CoinShares, a European crypto asset manager, has released its interim Q3 financials.

    Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the period increased to £88.8 million ($120.2 million), up from £62.8 million ($85 million) in the previous quarter.

    CoinShares’ adjusted EBITDA for 2020 was £22.1 million ($29.9 million). According to the filing, the company’s third-quarter results have set the stage for its best-ever nine-month performance.

    The continuation of the firm’s positive financial performance in Q3 coincides with the cryptocurrency market’s significant value recovery following a 50% drop in May.

    “This performance demonstrates the resilience and scalability of our business model; we continue to capitalize on the evolution seen in the broader industry and translate it into total comprehensive income and balance sheet growth,” said Jean-Marie Mognetti, CoinShares’ CEO.

    The firm’s performance is also reflected in the company’s earnings from management fees, which totaled £55.1 million in the filing — nearly three times the amount collected from fees in 2020.

    In 2021, institutional inflows into crypto investment positions are expected to increase, with more big-money players allocating funds to cryptocurrency products.

    CoinShares’ assets under management (AUM) also grew in Q3 with and stands at £2.9 billion ($3.9 billion) as of the period ending September 30. The company’s AUM was £1.7 billion ($2.3 billion) at the end of 2020.

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