CoinShares Reports Positive Q2 Earnings, Despite Flowbank Bankruptcy
Crypto asset manager CoinShares, reported positive financial results for the second quarter of 2024, showing a significant increase in revenue despite facing challenges including the FlowBank bankruptcy.
CoinShares reports combined revenue, gains, and other income for the quarter stood at £37.6 million ($47.9 million) a huge increase from £18.9 million ($24 million) in Q2 2023.
This growth reflects the strong performance of CoinShares’ core business operations, although it was partly offset by the financial impact of the FlowBank bankruptcy.
On June 13, CoinShares said it was informed that the Swiss Financial Market Supervisory Authority (FINMA) had initiated bankruptcy proceedings against FlowBank.
FlowBank was part of CoinShares’ principal investments, and the bankruptcy resulted in a significant financial setback. In 2022, CoinShares acquired an additional 20.8% stake in FlowBank. In 2021, Coinshares had a 9.02% stake in FlowBank, taking the overall holding to 29.3%, with voting rights equal to 32.06%.
The firm said it elected to fully impair its investment in FlowBank on June 22. The impairment led to a charge of £21.8 million ($27.8 million). Despite this considerable loss, CoinShares assured stakeholders that the impairment did not affect the group’s operations, products, or client services.
The crypto asset manager also pointed out that with the successful sale of its claim against FTX, the crypto exchange that went bankrupt in late 2022. The sale, completed on June 24, of this year, was related to assets written off during Q4 2022 following FTX’s bankruptcy.
This transaction has seen a recovery rate of 116% net of broker fees, bringing in $36 million said CoinShares in its earnings report. This has contributed
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