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CoinShares Announces Interim Results for the Quarter ended 30 June 2022

2nd August 2022

2 August 2022 | SAINT HELIER, Jersey | CoinShares International Limited (Nasdaq First North Growth Market: CS; US OTCQX: CNSRF) (“CoinShares”), Europe's largest and longest standing full-service digital asset investment and trading group today announced financial results for its second quarter ended 30 June 2022.

Jean-Marie Mognetti, Chief Executive Officer of CoinShares said:

“We are pleased to announce a resilient performance during this second quarter, despite the ongoing turbulence in the digital asset arena. While our Asset Management business continued to generate solid profit, the Capital Markets business experienced a one-off loss of £17.7 million following the de-pegging of US Terra. The financial impact of this 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. Adjusted EBITDA for the quarter stands at a loss of £8.2 million. Despite the loss incurred in Q2, our year to date performance evidences a robust underlying business, with Adjusted EBITDA of £10.5 million and total comprehensive income of £20.1 million.

In light of the market turmoil we have reviewed our risk profile and moved into a more defensive mode. We have commenced taking steps to reduce both our cost base and various exposure across the group and this conservative approach will enable us to preserve our capital, ready to take advantage of opportunities in the digital asset space as they emerge.

In the meantime, we continue to develop the group steadily, with a series of important product launches during the quarter and more planned for the rest of the year. Most importantly we have completed the acquisition of Napoleon Asset Management following approval from the French regulator in July which brings with it an AIFMD/MiFiD licence, opening up a wealth of new development opportunities. Our strategy also remains on track, including our plans to uplist our shares onto the main Nasdaq market in Stockholm in due course.

CoinShares has sufficient resources to navigate the markets during this volatile time thanks to an effective strategy, a robust balance sheet and a seasoned, world class team. The breadth and depth of our experience in digital assets ensures that we can take a long-term view as we continue to build the future of investing.”

Q2 2022 financial highlights

  • Total revenue for the quarter of £14.2 million (Q2 2021: £19.6 million)
  • Adjusted EBITDA loss of £8.2 million (Q2 2021: £28.6 million) following a one-off loss of £17.7 million from the liquidation of Group’s holdings in UST.
  • Total comprehensive loss for the quarter of £0.1 million (Q2 2021: income of £26.6 million),

Q2 2022 operational highlights

  • Important steps taken towards the Group’s long-term strategy, including progressing plans to uplist CoinShares onto the Nasdaq Stockholm Main Market and completing the integration of our consumer platform, Napoleon.
  • Continued investment in the asset management division, having launched five new CoinShares Physical products in Q2: CoinShares Physical FTX Token, CoinShares Physical Chainlink, CoinShares Physical Uniswap, CoinShares Physical Staked Matic, and CoinShares Physical Staked Cosmos.
  • Gained the Alternative Investment Fund Manager (AIFMD/MiFID) licence; one of the most rigorous European regulations for Asset Managers and a key component in CoinShares’ ambition to become the leading investment group in the digital asset sector.
  • Undertaken a thorough review of our risk management procedures and improved the trading platform to ensure greater transparency following the losses incurred by the UST de-pegging.

For the full CoinShares Q2 report, follow this link

ABOUT COINSHARES

CoinShares is Europe's largest and longest full-service digital asset investment and trading group, managing billions of dollars of assets on behalf of its client base. The Group is focused on expanding investor access to the digital asset ecosystem by pioneering new financial products and services that seek to provide trust and transparency when accessing this new asset class. CoinShares is publicly listed on the Nasdaq First North Growth Market under the ticker CS and the OTCQX under the ticker CNSRF.

For more information on CoinShares, please visit: https://coinshares.com

Company | +44 (0)1534 513 100 | [email protected]

Investor Relations | +44 (0)1534 513 100 | [email protected]

Certified Advisor – Mangold Fondkommission AB | +46 (0)8 503 015 50 | [email protected]

This information is information that CoinShares International Limited is obliged to make public pursuant to the EU Market Abuse Regulation 596/2014. The information in this press release has been published through the agency of the contact persons set out above, at 8:00 am GMT on 2 August 2022

PRESS CONTACT

Maitland/amo

Freddie Barber / Alasdair Todd / Kate Pledger

[email protected]

+44 (0) 207 379 5151

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Forward-looking statements

The report contains certain forward-looking statements and opinions. Forward looking statements are statements that do not relate to historical facts and events, and such statements and opinions pertaining to the future that, for example, contain wordings such as "believes", "estimates", "anticipates", "expects", "assumes", "forecasts", "intends", "could", "will", "should", "would", "according to estimates”, “is of the opinion", "may", "plans”, "potential", "predicts", "projects", "to the knowledge of” or similar expressions, which are intended to identify a statement as forward-looking. This applies, in particular, to statements and opinions in the report concerning future financial returns, plans and expectations with respect to the business and management of the Company, future growth and profitability, and the general economic and regulatory environment, and other matters affecting the Company.

Forward-looking statements are based on current estimates and assumptions made according to the best of the Company's knowledge. Such forward-looking statements are subject to risks, uncertainties, and other factors that could cause the actual results, including the Company's cash flow, financial position, and operating profit, to differ from the information presented in such statements, to fail to meet expectations expressly or implicitly assumed or described in those statements or to turn out to be less favourable than the results expressly or implicitly assumed or described in those statements. Accordingly, prospective investors should not place undue reliance on the forward-looking statements contained herein and are strongly advised to read the entire report. The Company cannot give any assurance regarding the future accuracy of the opinions set forth herein or as to the actual occurrence of any predicted developments.

In light of the risks, uncertainties and assumptions associated with forward-looking statements, it is possible that the future events mentioned in the report may not occur. Moreover, the forward-looking estimates and forecasts derived from third party studies referred to in the report may prove to be inaccurate. Actual results, performance or events may differ materially from those presented in such statements due to, without limitation, changes in general economic conditions, in particular economic conditions in the markets in which the Company operates, changes affecting interest rate levels, changes affecting currency exchange rate, changes in levels of competition and changes in laws and regulations.

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