CoinShares International develops innovative infrastructure, financial products and services for the digital asset class.
Despite the regulatory crackdown on key crypto players (combined with still pending US congress legislation for the sector) in the US, there are further signs of interest from traditional finance players in the digital assets space, as illustrated by recent US filings for a Bitcoin spot ETF from BlackRock and Invesco, as well as PayPal’s launch of its own Ethereum-based stablecoin. Near-term adoption may be dampened by low market liquidity and gaps in infrastructure left by the collapse of some service providers. Still, digital assets have grown ‘too big to ignore’, even if the current adoption rate varies by investor group.
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Daniel Masters
Chairman
Jean-Marie Mognetti
CEO
Richard Nash
CFO
Forecast net cash (£m)
78.2
Forecast gearing ratio (%)
N/A
% | 1M | 3M | 12M |
---|---|---|---|
Actual | (19.4) | 5.3 | 8.0 |
Relative | (19.5) | 8.9 | (5.2) |
52 week high/low | SEK55.9/SEK19.0 |
CoinShares International (CS) is a fintech created to support the emergence of digital assets as a new investible asset class. However, it is more than a simple beta play on the bitcoin price as its proprietary technology facilitates regulated issuance platforms (with CS’s ETP assets under management at £1.66bn at end-June 2023) and gains derived from capital markets activities, including liquidity provisioning, non-directional trading, decentralised finance income and fixed income activities. We consider CS an attractively priced option on the prospective adoption of digital assets.
Y/E Dec | Revenue (£m) | EBITDA (£m) | PBT (£m) | EPS (fd) (p) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2021A | 80.8 | 121.1 | 112.7 | 162.0 | 1.8 | N/A |
2022A | 51.5 | (6.5) | (15.8) | 4.0 | 74.6 | 0.4 |
2023E | 40.9 | 41.8 | 32.3 | 31.4 | 9.5 | 0.4 |
2024E | 53.2 | 52.3 | 41.6 | 60.3 | 4.9 | 0.3 |