CoinShares Q2 2022 Revenue Drop
On Tuesday, CoinShares, a European cryptocurrency investment firm, chimed in with its interim financial results for Q2 2022. In a not-so-cheerful comparison to Q2 of last year, revenue took a nosedive from £19.6 million ($23.89 million) to £14.2 million ($17.31 million). This isn’t exactly the kind of news that sparks a celebratory crypto party.
Net Income Nose-Dive
Adding to the gloomy picture, net income fell off a cliff from £26.6 million ($32.42 million) in Q1 2021 to a paltry £0.1 million ($0.12 million). Talk about a dramatic fall from grace!
The Terra (LUNA) Chaos
So, what caused this shake-up? CoinShares pointed fingers at its entanglement with the Terra (LUNA) ecosystem, which took a dramatic plunge in May. According to their announcement, the Capital Markets arm faced an unexpected blow, registering a one-off loss of £17.7 million after the decentralized finance platform’s collapse.
“While our Asset Management business continued to generate solid profit, the Capital Markets business experienced a one-off loss…,” CoinShares noted.
Resilience in Adversity
Despite these rocky numbers, CoinShares CEO Jean-Marie Mognetti remains positive about future operations. He asserted that the firm has taken a step back to evaluate its risk profile—talk about being prudent in turbulent times!
Future Plans: Looking Up?
CoinShares has ambitious plans ahead, including a potential uplisting to the Nasdaq Stockholm Main Market after obtaining a license as an Alternative Investment Fund Manager. Let’s just hope they weather this storm to see that possibility come to fruition!
New Product Launches
In light of the second-quarter roller coaster, CoinShares launched five innovative physical products, such as:
- CoinShares Physical FTX Token
- CoinShares Physical Chainlink
- CoinShares Physical Uniswap
- CoinShares Physical Staked Polygon
- CoinShares Physical Staked Cosmos
By the end of Q2, CoinShares reported holding £220.8 million ($269.15 million) in net assets, proving that even amidst losses, there are glimmers of hope.
Conclusion
While CoinShares has faced its share of hurdles in Q2 2022, with profits tumbling and exposure to the infamous Terra shake-up, the company is not ready to throw in the towel. With its upcoming plans and CEO’s reassurance, it’s one to watch as the cryptocurrency space continues to evolve.
