CoinShares (CSHR) Q4 2023 earnings summary

Executive summary

• Fourth consecutive profitable quarter on an adjusted EBITDA basis; FY 2023 adjusted EBITDA was £56.9m, the second-strongest annual result after 2021.

• Q4 combined revenue, gains and other income rose to £33.3m from £14.3m YoY; total comprehensive income was £15.3m.

• Year-end AUM reached £3.01bn, up 109% from end-2022, supported by digital-asset price recovery and net inflows into CoinShares Physical.

Financial highlights

• Q4 revenue was £12.7m vs £8.6m YoY; gains and other income were £20.3m vs £5.8m.

• Adjusted EBITDA was £25.7m vs a £23.8m loss YoY; FY adjusted EBITDA was £56.9m vs £6.8m in FY 2022.

• Q4 IFRS net loss was £543.8m, while total comprehensive income was £15.3m; FY IFRS net loss was £521.0m and comprehensive income £37.9m.

• Adjusted EPS was £0.23 in Q4 vs a £0.54 loss YoY; FY adjusted EPS was £0.56 vs £0.04 in FY 2022.

Outlook and guidance

• 2024 priorities include strengthening European leadership, expanding in the US through Valkyrie, growing Hedge Fund Solutions and using the French AIFMD licence to broaden European reach.

• Distribution and marketing in the US, UK and other eligible markets are central to AUM growth; further Principal Investments disposals may be pursued to realise gains.

• The Valkyrie acquisition was expected to be finalised in early Q2 2024, subject to due diligence, legal agreements and final board approval.