Coinshares 2022 Profit Plunge Due To FTX Exposure

Summary:
• Digital Asset firm Coinshares has reported a significant decline in its income due to its $31 million exposure to FTX.

Coinshares (STO: CS), one of the leading digital assets management firms in Europe, has reported its Q4 financials. As per this report, the firm also confirmed its exposure of the bankrupt crypto exchange FTX. Despite $31 million exposure, the CEO still believes that the company is in robust financial health.

According to the Coinshares CEO, the FTX bankruptcy affected the deployment of its algorithmic trading platform HAL. Nevertheless, the latest financial report suggests that the company had strong inflows in its Physical ETPs in Q4.

Coinshares Stock Moves To NASDAQ Stockholm’s Main Market

In a recent tweet, the publicly-listed company also proudly mentioned its transition to Nasdaq Stockholm’s main market. Although the firm remains unsure about retrieving its FTX funds back, the CE still believes in a strong 2023. This year the primary focus of Europe’s biggest crypto fund will be its digital asset management business and institutional offerings.

According to the Q4 financial report, the quarterly revenue of the company remained £8.8 million during the quarter. This was a 65% decline from its 2021 revenue in the same quarter. Similarly, the yearly revenue also fell from £80.8 million in 2021 to £51.5 million in 2022.

The total comprehensive income of Coinshares in Q4 2022 remained negative £37 million. However, the same figure stood at a positive £28.6 million in Q4 2021.

Most Crypto Hedge Funds With FTX Exposure Collapsed

November 2022, the bankruptcy of FTX rendered many crypto businesses insolvent. The top crypto exchange was being used by many institutions for crypto trading activities. These institutions lost access to their funds as FTX halted withdrawals in November.

While CoinShares still found its way through the whole FTX fiasco, not all crypto funds were that lucky. A lot of crypto firms went insolvent in the following days of FTX collapse. This also included another top hedge fund Galois Capital which seized its operations this month. The failing hedge fund will be paying its users the remaining assets after the half of its assets got trapped in FTX.