CoinShares, a prominent digital asset investment platform, has reported impressive financial results in its fourth-quarter report for 2023, highlighting significant revenue growth and a substantial increase in assets under management (AUM).
Financial Performance
In 2023, CoinShares declared annual revenue of $108.5 million, marking a notable recovery compared to the previous year. The company reported revenue, gains, and other income of $42.12 million in the fourth quarter of 2023 alone. Additionally, CoinShares revealed that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at approximately $32.51 million for the quarter, with a total comprehensive income of $19.36 million.
Compared to its earnings in 2022, CoinShares demonstrated significant improvement in 2023. In the fourth quarter of 2022, the company recorded negative EBITDA of $30.11 million, whereas its total income was negative $46.94 million. However, in 2023, the company's revenue, gains, and other income amounted to $108.4 million, with adjusted EBITDA for the year reaching $71.98 million and total income reaching $47.95 million.
Assets Under Management (AUM)
CoinShares reported a substantial increase in its total AUM, reaching $3.81 billion as of December 31, 2023. Of this amount, $3.09 billion is held in the balance sheet of the group's exchange-traded products (ETPs) issued by XBT Provider and CoinShares Digital Securities.
The company attributed the 109% growth in AUM since the end of 2022 to the digital asset price recovery in 2023, coupled with net inflows into CoinShares physical products.
Strategic Outlook
CoinShares CEO Jean-Marie Mognetti expressed satisfaction with the company's performance, stating that it is now navigating the right course after refining its strategy. Mognetti highlighted the effectiveness of CoinShares' approach, as evidenced by the sustained EBITDA throughout 2023, particularly in the fourth quarter. He emphasized the collective effort of every business unit and corporate function in driving the company's success.
Looking ahead, Mognetti outlined CoinShares' focus on leveraging momentum and expanding globally. The company aims to position itself as a "one-stop shop" for digital asset investments, capitalizing on its operational strength and strategic initiatives.
CoinShares' robust financial results underscore its resilience and growth trajectory in the digital asset investment landscape, signaling a promising outlook for the company in the coming years.
