CoinShares publishes its quarterly financial report, reveals a $21M loss during the Terra collapse

CoinShares stated that it would acquire Napoleon Asset Management after receiving approval from French regulators.
CoinShares stated that it would acquire Napoleon Asset Management after receiving approval from French regulators.

The biggest digital asset investment group in Europe, CoinShares, has recently revealed a loss of more than $21 million during the Terra collapse.

In its quarterly financial report, the company laid out its performance during the past three months and the upcoming investments for this quarter. Predictably, the asset management firm disclosed a significant loss on its Terra and Luna investments. However, due to sound investment methods, the firm survived the storm effectively.

Despite the current market conditions, CoinShares’ CEO, Jean-Marie Mognetti, believes the company has remained resilient. He stated while the company’s Asset Management business continues to generate healthy profit, its Capital Markets division suffered a one-time loss of £17.7 million due to the depegging of UST. He added:

“The financial impact of [LUNA/UST crash] episode, despite being relatively small when compared to the losses incurred by other players in our industry, has, of course, had a material impact on our quarter.”

CoinShares unsatisfactory results

Moving forward, Mognetti noted that CoinShares had an adjusted EBITDA loss of £8.2 million and a total comprehensive loss of £0.1 million in the past quarter. However, total sales for the current fiscal year remain buoyant, with a comprehensive income of £20.1 million and an adjusted EBITDA of £10.5 million.

Although the quarterly results were obviously unsatisfactory, it is crucial to highlight that it still considerably outperforms companies that have been widely discussed in recent months.

Notably, a few weeks back, as TheCoinRise reported, the CoinShares CFO said that the crypto bear market may last till 2023.

Massive plans ahead

There are no withdrawal limits, and buyouts have been discussed within the community. Instead, CoinShares stated that it would acquire Napoleon Asset Management after receiving approval from French regulators.

CoinShares also intends to list its stock on the NASDAQ. Furthermore, the company got an AIFMD license, certifying that it complies with one of the most strict financial rules in the European Union.