CoinShares posts £8.2M Q2 loss due to one-off impairment hit from Terra
London-based digital asset management company Coinshares report A one-time loss of £17.7m from the Terra collapse led to a pre-tax loss of £8.2m in the second quarter, compared to a pre-tax profit of £28.6m a year ago.
Combined revenue, profit and other income for the quarter, excluding Terra impairments, was £15.3m compared to £38.3m a year ago.
financial highlights
Total revenue, profit and other income for the quarter was -£2.4m compared to £38.3m in 2021. The company said the Terra impairment primarily impacted earnings for the period.
The company’s Capital Markets business reported a loss of £11.4m compared to £14.7m in Q2 2021 while Wealth Management posted a profit of £14.2m from £19.6m in Q2 2021 Did.
Additionally, write-downs on equity investments and proprietary digital asset holdings resulted in a principal investment loss of £5.1m in the quarter, compared to a gain of £4.1m in 2021. Write-downs were primarily on holdings related to 3iQ and Solana.
Coinshares’ total AUM was £1.66 billion as of June 30th. This loss resulted in EPS of £0.00 for the quarter compared to £0.40 in the prior year period.
terra exposure
Although Coinshare Capital Markets was not directly exposed to Terra, it did have books related to the TerraUSD stablecoin, which led to its impairment.
Despite the incident, the CEO Jean-Marie Mognetti is optimistic about the company’s future.
“Given the market turmoil, we have reviewed our risk profile and moved to a more defensive mode. We have begun taking steps to reduce both our cost base and various exposures across the Group. Our approach allows us to preserve our capital and capitalize on opportunities as they arise in the digital asset space.”
Monetti He said the loss was not negligible, but the business remained strong. He added that Coinshares is working to “improve its trading platform to increase the transparency of its risk management and financial objectives.”
