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Cryptocurrency investment group CoinShares recently released its 2023 Q1 earnings report amid what it calls a “return to profitability.”
Report highlights include revenue of $11.73 million (up from $22.46 million in the first quarter of 2022), total comprehensive income of $3.62 million (up from $25.83 million in Q1 2022) and adjusted earnings before interest, taxes, depreciation and amortization (EBIDTA) of $10.61 million (compared to $25.83 million in the first quarter of 2022).
For 2022 as a whole, CoinShares reported an operating loss of $25.21 million, which contrasts sharply with the company’s operating profit of $126.54 million reported for 2021.
Despite the market conditions, CoinShares has achieved a significant milestone by returning to profitability in the Q1 2023.
Amidst a complex landscape, we generated £15.3 million in revenue and gains, showcasing our resilience.
Discover our Q1 report: https://t.co/jBJOGu6rNK pic.twitter.com/XBaGPBgf9I
— CoinShares (@CoinSharesCo) May 16, 2023
According to the report, this comes after a turbulent period for the company and the cryptocurrency industry as a whole:
In the first quarter of 2023, just like in 2022, the financial and cryptocurrency industries faced a difficult and difficult situation. Against this backdrop, CoinShares has shown strong resilience. During the quarter we generated revenue and profit of £15.3m and successfully returned to profitability with Adjusted EBITDA of £8.5m. As a result, the adjusted EBITDA margin was 55%.
The report cites the recent collapse of “crypto-friendly banks like Silvergate and Signature” and regulatory scrutiny due to FTX’s “slump” as mitigating factors for earnings, indicating profits may have been cut. because of the looming specter of government oversight.
CoinShares looks cautiously optimistic about the future, stating that “we welcome this additional regulatory activity, but hope it doesn’t turn into a witch hunt or the politicization of crypto ahead of the U.S. election, as some commentators have suggested.”
The earnings report comes right after CoinShares’ “Digital Asset Fund Flows Report,” which Cointelegraph reports showed $54 million in outflows of digital asset investment products for the week, meaning most of it was moved from the exchange to wallets. .
According to CoinShares, the recent outflow trends can be at least partially blamed on consumer and industry speculation related to higher U.S. federal interest rates. As mentioned in a previous Cointelegraph report, such speculation could be a contributing factor to the recent Bitcoin (BTC) volatility.