After being subjected to the TerraUSD collapse, the company’s book-making suffered greatly.
CoinShares, a European cryptocurrency investment company, released its preliminary Q2 2022 results on Tuesday. The company’s sales decreased from 19.6 million pounds to 14.2 million pounds compared to last year’s period. The company’s net income decreased from 26.6 million pounds in Q1 2021 to 0.1 million pounds.
The Terra Luna collapse did not directly affect its Capital Markets because it normally doesn’t take directional positions. However, the company was holding a book tied to the TerraUSD stablecoin at the moment of the incident, which led to an unusual loss.
After acquiring an Investment Fund Fund Manager license, CoinShares intends to upgrade its listing on the Nasdaq Stockholm Main Market. The CS Physical FTX Token, Physical Chainlink, Physical Uniswap, Polygon, and Physical Staked Cosmos were among the five new physical goods that were introduced by them during the second quarter. Ending Q2, the company had net assets of 220.8 million pounds ($269.15 million).
CoinShares Reported Huge Loss Of $21.7M:
They explained that the losses are tied mostly to the Terra Classic ecosystem that might collapse. They say while the asset management businesses are continued to generate profit. The de-pegging of Terra Luna resulted in a one-time loss of £17.7 million for the Capital Markets division. Despite being relatively minor compared to the losses suffered by other participants in our business, this episode’s financial impact had a significant impact on our quarter.
The CoinShares CEO also revealed the expressed optimism about future operations. We have evaluated our risk profile in light of market turbulence and switched to a more defensive posture. Thanks to a successful strategy, a strong balance sheet, and a seasoned, world-class workforce, they have the tools to manage the markets during this uncertain period.
