CoinShares International — Becoming a dividend payer

CoinShares International (OMX: CS)

Last close As at 22/05/2024

SEK64.00

0.10 (0.16%)

Market capitalisation

SEK4,350m

More on this equity

Research: Financials

CoinShares International — Becoming a dividend payer

CoinShares International (CS) concluded its latest financial year with Q423 adjusted EBITDA of £25.7m, which brought its FY23 earnings to £56.9m (the second-best result in its history). The company is now introducing a dividend policy, aiming to pay out 20–40% of its total comprehensive income adjusted for currency translation differences. We calculate that, based on the FY23 results and current share price, this implies a healthy dividend yield of c 3.4–6.8%. CS is looking to expand into the US by exercising its option to acquire Valkyrie Funds (which has a US spot bitcoin ETF in its offering) and through its newly launched Hedge Fund Solutions business.

Milosz Papst

Written by

Milosz Papst

Director, Financials

andre-francois-mckenzie-iGYiBhdNTpE-unsplash

Financials

CoinShares International

Becoming a dividend payer

Q423 results

Financials

5 March 2024

Price

SEK53.00

Market cap

SEK3,522m

SEK13.1779/£

US$1.2677/£

Total equity at end-Q423

£238.8m

Shares in issue

66.5m

Free float

29.5%

Code

CS

Primary exchange

Nasdaq Stockholm

Secondary exchange

N/A

Share price performance

%

1m

3m

12m

Abs

33.5

31.4

61.1

Rel (local)

28.3

18.9

49.1

52-week high/low

SEK55.90

SEK28.45

Business description

CoinShares International develops innovative infrastructure, financial products and services for digital assets. It manages and provides liquidity for exchange traded products and undertakes proprietary trading in digital assets.

Next events

FY23 report

30 April 2024

Q124 results

14 May 2024

Analyst

Milosz Papst

+44 (0)20 3077 5700

CoinShares International is a research client of Edison Investment Research Limited

CoinShares International (CS) concluded its latest financial year with Q423 adjusted EBITDA of £25.7m, which brought its FY23 earnings to £56.9m (the second-best result in its history). The company is now introducing a dividend policy, aiming to pay out 20–40% of its total comprehensive income adjusted for currency translation differences. We calculate that, based on the FY23 results and current share price, this implies a healthy dividend yield of c 3.4–6.8%. CS is looking to expand into the US by exercising its option to acquire Valkyrie Funds (which has a US spot bitcoin ETF in its offering) and through its newly launched Hedge Fund Solutions business.

Year
end

Revenue
(£m)

Other gains and
income (£m)

Adjusted EBITDA* (£m)

Adjusted EPS (£)

DPS
(£)

P/E
(x)

Yield
(%)

12/22

51.5

(19.6)

(6.5)

0.04

0.00

100.5

0.0

12/23

43.5

42.3

56.9

0.56

0.20**

7.2

5.1

12/24e

65.6

40.3

65.9

0.80

0.25

5.0

6.2

12/25e

84.9

48.3

83.5

1.02

0.32

3.9

8.0

Note: *Sum of revenue, other gains and income (income and gains from capital markets infrastructure and gains on principal investments) less administrative expenses excluding D&A. **Edison forecast.

Multiple contributors to the solid Q423 results

CS’s results were supported by all its three major activities. Its asset management business benefited from higher digital asset prices and relatively limited net outflows from the XBT Provider products, and also saw a pickup in net inflows into the CoinShares Physical platform (US$159.4m in Q423). CS’s Capital Markets Infrastructure division posted £12.7m gains and income in Q423 (vs £5.2m in Q422), mostly on the back of higher rewards from Ether (ETH) staking. Finally, its principal investments yielded a £7.6m gain in Q423, more than offsetting the £3.9m loss in 9M23.

Three potential tailwinds for digital assets in 2024

Digital asset markets could benefit from three major forces in 2024. First, the approval of spot bitcoin ETFs in the US marks a significant milestone in the broader adoption of digital assets, which may lead to significant fund inflows (with some initial encouraging developments in recent weeks). Second, the next Bitcoin halving (ie a 50% reduction of block rewards) is due in April 2024, with previous halving events coinciding with the onset of major bull runs in digital assets. Finally, a potential turn in the Fed interest rate cycle could also prove supportive for more risky assets, including digital assets.

Valuation: Further upside despite latest rally

CS’s share price rose by c 38% following the Q423 results and new dividend policy announcement. That said, it is still well below the fair value estimate in our base case scenario of SEK82.7 (slightly down from SEK83.6 previously). Using a more cautious scenario, with growth in digital assets market capitalisation of only 2% pa from the end-2023 level, we value CS at c SEK45.0 (vs SEK40.6 earlier).

Second-best result in CS’s history in FY23

CS reported a strong Q423 adjusted EBITDA of £25.7m, versus a £23.8m loss in Q422 (due to the impact of the FTX collapse) and £9.9m in Q323. This brought CS’s FY23 adjusted EBITDA to £56.9m, which is the second-best result in the company’s history after 2021 (ie the peak of the previous strong bull market). The company’s Q423 earnings were mostly supported by a combination of digital asset price appreciation driving up CS’s management fees (with the BTC price up c 56% vs end-September 2023 and 156% y-o-y), limited outflows from XBT Provider products (see below), as well as good results in the Capital Markets Infrastructure (CSCM) division (Q423 gains and income at £12.7m vs £5.2m in Q422). The CSCM results were mostly supported by the £8.0m income from staking (primarily ETH, up from £4.8m in Q323), but also trading gains (delta neutral strategies gains of £0.9m, largely from CME futures trading) and lending (included in the £1.5m from fixed income activities, which also reflects interest on broker balances and treasury bills).

Furthermore, CS booked a £7.6m net gain from its principal investments in Q423 (vs £0.5m in Q422) on the back of the agreed full disposal of its stake in Canadian ETP issuer 3iQ (resulting in a £2.5m gain), the partial sale of SBG, which holds a stake in Choice/Kingdom Trust (following a merger with another trust company), as well as the unwinding of the discount to the last funding round valuation for digital asset custodian Komainu (on the back of the digital asset market recovery and business progress). This more than offset the loss on Swiss-based online neo bank FlowBank, which resulted from significant provisions FlowBank made in its FY22 accounts ‘to meet potential challenges and guarantee the stability of its future operations’, according to the company’s press statement from 18 October 2023.

Exhibit 1: Q423 and FY23 results highlights

£m, unless otherwise stated

Q423

Q422

change y-o-y

FY23

FY22

change y-o-y

Revenue, of which:

12.7

8.6

48.9%

43.5

51.0

-14.8%

XBT Provider

12.3

7.5

64.4%

39.9

45.9

-13.1%

CoinShares Physical

0.4

0.7

-39.1%

2.0

2.3

-12.3%

Equities platform

0.3

0.3

-2.0%

1.4

1.9

-24.6%

Other

(0.3)

0.1

NM

0.1

1.2

-89.7%

Capital market infrastructure income/gains, of which:

12.7

5.2

143.2%

38.6

26.3

47.0%

Liquidity provisioning

0.4

0.5

-8.9%

1.4

4.5

-67.5%

Delta Neutral Trading Strategies

0.9

3.0

-70.0%

5.0

2.6

93.6%

Fixed income activities

1.5

1.8

-16.1%

10.1

5.0

104.4%

Staking/DeFi

8.0

1.1

610.9%

21.9

13.9

57.7%

Other

1.8

(1.1)

NM

0.2

0.4

-55.6%

Principal investment gains/(losses)

7.6

0.5

NM

3.7

(4.9)

NM

Administrative expenses excluding D&A

(7.6)

(38.0)

NM

(28.8)

(79.2)

NM

Adjusted EBITDA

25.7

(23.8)

NM

56.9

(6.8)

NM

Adjusted EBITDA margin

77%

NM

NM

66%

NM

NM

Depreciation and amortisation

(0.4)

(0.7)

-45.8%

(3.2)

(2.9)

12.2%

Finance expense

(2.1)

(0.9)

141.2%

(6.9)

(6.3)

9.1%

Income taxes

(0.1)

(0.1)

11.4%

(0.5)

(0.4)

48.8%

Net income

23.1

(25.5)

NM

46.2

(16.3)

NM

Currency translation differences

(7.8)

(11.6)

-33.1%

(8.2)

19.3

NM

Total comprehensive income

15.3

(37.1)

NM

37.9

2.9

NM

Source: CoinShares International data

The healthy growth in CS’s revenues, gains and other income was accompanied by only a modest c 9% y-o-y increase in operating expenses in Q423 (excluding goodwill impairment and exceptional items booked in Q422), with the full-year costs up just 2% y-o-y. This allowed CS to realise significant operating leverage effects, with its EBITDA margin at 77% in Q423 (66% in FY23) vs 54% in Q422 excluding goodwill impairment and exceptional items, according to our calculations. CS’s total comprehensive income (which accounts, among others, for the currency translation differences on the accrued XBT Provider fee income) stood at £15.3m in Q423, affected by FX headwinds from the weakening US dollar against sterling. Consequently, the company recouped nearly all the losses from the 2022 crypto winter, with net assets of £238.8m at end-2023 vs £240.6m at its peak in Q222.

Fund inflows accelerating on the back of US spot bitcoin ETF approval

CoinShares Physical saw an acceleration of net inflows with c US$159.4m in Q423 (out of a total US$884m in Europe), translating into 2023 net inflows of US$213.2m (vs US$140.8m in 2022), representing c 73% of end-2022 assets under management (AUM). This compares with 21Shares and ETC Group (CS’s two largest competitors in Europe by AUM) at US$366m (46% of end-2022 AUM) and US$427m (134% of end-2022 AUM), respectively. The main catalyst for the accelerated inflows across the digital assets space was the court win of Grayscale (the largest digital asset manager globally), which proved to be a prelude to the bitcoin spot ETFs approval by the US Securities and Exchange Commission.

Meanwhile, net outflows from CS’s legacy XBT Provider products were relatively moderate at U$37.4m in Q423 and US$125m in 2023 (vs US$446m in 2022 and US$1,173m in 2021). We discussed the underlying drivers for the diminishing net outflows in our August 2023 note. Invesco CoinShares Global Blockchain UCITS ETF experienced minor outflows of US$29m in 2023, bringing the ETFs AUM to US$754m at end-2023. This compares with total net inflows into blockchain equity ETPs of US$458m in 2023 (according to CS data), of which US$388m was into Amplify Transformational Data Sharing ETF, which at end-2023 was the largest product in this group with US$1,072m AUM. All the above has led to an increase in CoinShares Physical’s share in CS’s total AUM to 19% at end-2023 versus c 10% at end-2022 (see Exhibit 2). This is in line with management’s intention, given that CoinShares Physical is a more modern, institutional-grade product.

Exhibit 2: CS’s assets under management

Source: CoinShares International data

Effective from 1 February 2024, CS reduced the fee on its CoinShares Physical Bitcoin ETP from 0.98% to 0.35% pa, which is visibly below some of the major competing products in Europe. For instance, ETC Group’s Physical Bitcoin ETP charges 2.00% pa, while the 21Shares Bitcoin ETP currently charges 1.49% pa. 21Shares also offers a lower-fee Bitcoin Core ETP (with a fee of 0.21% pa), but we note that the structure of this product allows for lending out the BTC held as collateral (which exposes the unit holders to a certain degree of counterparty risk). Moreover, the new fee on the CoinShares Physical Bitcoin ETP is now only moderately above the fee for the recently approved US spot bitcoin ETFs (0.19–0.30% pa, except for the Grayscale Bitcoin Trust, which charges 1.50%). CS’s move to reduce the fees on its Bitcoin ETP are in line with our expectations (discussed in our initiation note) that as single-asset BTC and ETH ETPs become a more commoditised product, their management fees should gravitate towards levels common for precious metals ETPs at c 0.00–0.40% for most major providers. That said, the reduction was quicker and slightly more pronounced than what we had included in our previous forecasts (0.75% by FY25 and 0.50% by FY30). We note that the fee on XBT Provider products (Bitcoin Tracker Euro and Bitcoin Tracker One) remains unchanged at 2.50% pa.

In early 2023, CS introduced a 0.00% fee on its CoinShares Physical Ethereum ETP to accumulate further AUM while it worked on introducing a mechanism to pass on some of the staking rewards to unit holders. Eventually, it implemented a staking reward of 1.25% pa effective from 1 February 2024. Any excess reward earned on the staked ETH will be an income to CS. The current staking yield as per CoinDesk’s Composite Ether Staking Rate stands at c 3.72% (broadly in line with CS management’s end-2024 expectations of c 3.50%) and has moved in a 3.30–4.00% range since autumn 2023. Based on earlier discussions with CS’s management, we understand that CS aims to at least offset the reduction in management fee on the CoinShares Physical Ethereum ETP (which initially stood at 0.98%) with the excess staking rewards.

New dividend policy shows confidence in CS’s income potential

Together with the Q423 results announcement, the company has introduced a dividend policy to pay out between 20% and 40% of its total comprehensive income adjusted for currency translation differences. Payments will be made in SEK in four quarterly instalments, subject to an assessment by CS’s board of the financial health and cash requirements of the company prior to each payment being made. We calculate that this would imply a dividend paid out of the FY23 earnings of £9.2–18.5m, or a dividend per share between £0.14 (SEK1.81) and £0.27 (SEK3.62), which at the current share price implies a healthy dividend yield of c 3.4–6.8%.

We note that the cash conversion level of CS’s earnings in any given year is determined by the extent of redemptions of XBT Provider products (which still generate the majority of fee income for CS). As discussed in our previous notes, the XBT Provider fees are charged by CS on a daily basis, but the corresponding cash inflow occurs only on redemption by an investor. That said, we also note that CS now has a significant recurring income stream from ETH staking rewards, as it stakes a meaningful part of the ETH held as collateral for the Ether Tracker One, Ether Tracker Euro and CoinShares Physical Ethereum ETP. As highlighted above, CS receives all staking rewards in excess of the 1.25% pa on the latter’s AUM. Moreover, it retains all the staking rewards for the Ether Trackers. For purely illustrative purpose, assuming 1) a staking yield of 3.5%, 2) AUM of CS’s Ether products in line with end-2023 level (when the ETH price was c 40% below the current spot price) and 3) that ETH equating to 50% of the AUM is staked, we arrive at an annual ETH staking income of c £15m. This excludes any capital gains on the staked ETH, which we understand are at least partly included in CS’s recently reported CSCM staking gains. Finally, CS has several further ETPs based on proof-of-stake digital assets with a similar mechanism for sharing the staking rewards, as in the case of the CoinShares Physical Ethereum ETP.

Management highlighted during the Q423 earnings call that dividends will be the primary form of distributions to shareholders going forward and that it does not expect to launch another buyback programme beyond the current one (which will be completed on 30 May 2024).

CS looking to tap into the US market opportunity

On 12 January, CS announced that it exercised its option to acquire Valkyrie Funds, the investment advisory business of US digital asset manager Valkyrie Investments. The acquisition is subject to the completion of satisfactory due diligence, the finalisation of legal agreements and CS’s board approval, with management expecting deal closure in early Q224. Valkyrie manages several US-domiciled products that would complement CS’s European product offering.

First, the Valkyrie Bitcoin Fund (ticker BRRR) was among the spot bitcoin ETFs approved by the SEC in January this year, with trading commencement on 11 January. Spot bitcoin ETFs had a good start, attracting net flows of US$7.9bn to 4 March 2024 even after accounting for the US$9.3bn of net outflows from the Grayscale Bitcoin Trust (ticker GBTC, which converted its existing bitcoin trust into a spot ETF), according to Bloomberg data. The GBTC outflows were likely due to 1) profit taking, as some investors held on to their GBTC units (which had traded at a discount to NAV during the recent ‘crypto winter’), 2) the sale of significant holdings in GBTC of the bankrupt exchange FTX and 3) some rotation out of the higher-cost GBTC into other bitcoin spot ETFs. We note that these net inflows may not fully reflect the onboarding of several major US wealth management platforms and registered investment advisors (RIAs) as they first need to complete a product due diligence phase before they can start offering these ETFs. Valkyrie Bitcoin Fund is one of the smaller players at present, with a c US$213m AUM as at 4 March 2024 (after attracting c US$140m of net inflows). This compares with GBTC at US$28.1bn and BlackRock’s iShares Bitcoin Trust (ticker: IBIT) at US$11.5bn (see Exhibit 3). BRRR charges a fee of 0.25% pa, broadly in line with most competitors.

Exhibit 3: Assets under management of US spot bitcoin ETFs

Source: Bloomberg as of 4 March 2024

Moreover, Valkyrie manages the Valkyrie Bitcoin Miners ETF, investing in listed digital asset mining equities, with c US$90m AUM as at 4 March 2024. Finally, its actively managed Valkyrie Bitcoin and Ethereum Strategy ETF (which invests in CME futures on BTC and ETH) had c US$55m AUM as at 4 March 2024. The potential acquisition of Valkyrie Funds, together with CS’s decision in September 2023 to enter the North American market through the launch its Hedge Fund Solutions business, illustrates CS’s ambition to become a global player in the digital asset industry.

Forecast and valuation revisions

We have raised our forecasts for CS’s adjusted EBITDA by c 19% in FY24, c 12% in FY25 and 10% in FY26, largely on the back of higher AUM driven by the recent appreciation in digital asset prices. Moreover, we have revised our Capital Markets Infrastructure forecasts to reflect a greater portion of the gains and income generated from staking. We note that our forecasts are now based on year-end BTC prices in FY24e and FY25e of c US$53,500 and US$77,000, respectively (vs the current spot price of c US$67,000). Our year-end ETH price assumptions stand at US$3,600 in FY24e and c US$6,000 in FY25e (vs the current spot price of c US$3,700). These are derived from our assumed allocation of global portfolios to digital assets at 1.10% in FY24 and 1.60% in FY25, as well as our assumed BTC and ETH dominance factors. The FY24 price assumptions are broadly in line with our previous forecasts, while the FY25 assumptions are c 8–9% below previous estimates.

Consequently, we arrive at a fair value per share for CS of c SEK82.7 (broadly in line with the previous valuation). Here, we note that we exclusively reflected the existing ETP and capital markets activities. We have not accounted for any valuation impact from the potential Valkyrie deal and the Q423 launch of CS’s Hedge Fund Solutions. With respect to the latter, CS’s management highlighted during the earnings call that the Hedge Fund Solutions division introduced Bitcoin and Ethereum Integrated Strategies Funds, which aim to outperform their benchmarks by 20% pa. The Bitcoin Integrated Strategies Fund has shown some initial promising results as it outperformed BTC by over 7% since August 2023.

Exhibit 4: Summary of forecast revisions

£m, unless otherwise stated

FY23

FY24e

FY25e

FY26e

Actual

Old

New

diff (%)

Old

New

diff (%)

Old

New

diff (%)

Revenue, of which:

43.5

54.3

65.6

21.0

80.2

84.9

5.8

99.0

97.2

(1.9)

XBT Provider

39.9

41.8

51.2

22.3

56.9

62.0

8.8

63.9

65.9

3.1

CoinShares Physical and other*

2.0

10.3

12.0

16.1

20.0

19.2

(3.7)

31.0

27.4

(11.6)

Block index

1.4

1.6

1.9

19.7

2.1

2.5

19.7

2.7

3.2

19.7

Other

0.0

0.0

0.0

N/A

0.0

0.0

N/A

0.0

0.0

N/A

Capital market infrastructure income/gains, of which:

38.6

40.5

41.1

1.7

43.7

48.3

10.4

40.7

50.0

22.9

Liquidity provisioning

1.4

3.0

2.1

(31.4)

5.0

2.8

(45.0)

4.7

3.3

(28.8)

Delta Neutral Trading Strategies

5.0

7.4

6.0

(18.5)

8.8

6.0

(31.9)

5.8

6.0

4.5

Fixed income activities

10.1

11.2

6.0

(46.2)

10.7

6.0

(43.4)

10.7

6.0

(43.4)

Staking/DeFi

21.9

18.8

27.0

43.4

19.2

33.4

74.2

19.6

34.6

76.8

Other

0.2

0.0

0.0

N/A

0.0

0.0

N/A

0.0

0.0

N/A

Principal investment gains/(losses)

3.7

0.0

(0.9)

N/A

0.0

0.0

N/A

0.0

0.0

N/A

Administrative expenses excluding D&A

(28.8)

(38.9)

(39.4)

1.5

(48.4)

(48.4)

0.2

(57.0)

(56.8)

(0.5)

Adjusted EBITDA

56.9

55.4

65.9

19.1

74.3

83.5

12.3

81.3

89.8

10.4

Total comprehensive income

37.9

44.4

57.1

28.6

62.1

72.3

16.4

69.1

77.4

12.0

Source: CoinShares International data, Edison Investment Research. Note: *Includes fees from CoinShares Physical and Invesco.

Exhibit 5: Financial summary

Year ending 31 December,
£’000s unless otherwise stated

FY19

FY20

FY21

FY22

FY23

FY24e

FY25e

FY26e

FY27e

FY28e

Income statement

 

 

 

 

 

 

 

 

 

 

Revenues

11,331

18,389

80,755

51,484

43,481

65,645

84,859

97,190

98,037

94,731

Administrative expenses

(9,284)

(14,312)

(32,059)

(38,166)

(32,070)

(42,680)

(51,673)

(59,998)

(65,670)

(69,860)

Other operating income

529

607

14,665

16,599

23,930

25,127

26,383

27,702

29,087

30,542

Profit/(loss) on financial instruments

(64,553)

(1,398,436)

(2,483,773)

2,001,602

(1,284,416)

(1,117,550)

(1,907,555)

(945,110)

(969,938)

(896,646)

Realised gain/(loss) on investments

(405)

942

5,287

(2,800)

11,365

0

0

0

0

0

Adj EBITDA

11,171

22,113

121,059

(6,521)

56,852

65,927

83,493

89,761

83,328

75,207

EBIT

(62,382)

(1,392,810)

(2,415,125)

506,719

(523,755)

52,620

67,203

73,084

67,609

60,391

Finance income

931

3,793

10,905

12,964

10,224

10,924

13,055

13,441

12,485

11,580

Finance expense

(404)

(1,191)

(7,045)

(6,373)

(6,905)

(6,376)

(7,097)

(8,276)

(9,358)

(10,496)

Pre-tax profit

(61,855)

(1,390,208)

(2,411,265)

513,310

(520,435)

57,168

73,161

78,250

70,736

61,475

Income taxes

(269)

(401)

(1,056)

(500)

(549)

(648)

(831)

(883)

(802)

(704)

Net income

(62,124)

(1,390,610)

(2,412,322)

512,810

(520,984)

56,520

72,331

77,367

69,934

60,771

Total comprehensive income

8,914

18,419

113,443

3,046

37,925

57,112

72,331

77,367

69,934

60,771

Adjusted EPS (diluted, £)

N/A

0.28

1.62

0.04

0.56*

0.80

1.02

1.09

0.98

0.86

DPS (£)

0.00

0.00

0.00

0.00

0.20**

0.25

0.32

0.35

0.31

0.27

Balance sheet

 

 

 

 

Property, plant and equipment

376

223

510

1,936

3,056

2,202

1,421

713

80

(474)

Digital assets

N/A

N/A

N/A

112

1,332

1,332

1,332

1,332

1,332

1,332

Intangible assets

7

20

19,781

11,992

10,637

9,764

8,891

8,018

7,145

6,273

Investments

5,585

3,626

24,501

45,020

44,924

42,304

42,304

42,304

42,304

42,304

Long term receivables and other

323

329

581

1,360

1,889

1,889

1,889

1,889

1,889

1,889

Non-current assets

6,290

4,199

45,372

60,420

61,837

57,491

55,836

54,255

52,750

51,323

Trade and other receivables

27,011

62,274

1,075,971

199,045

274,312

381,594

496,462

575,454

655,296

719,172

Digital assets

427,524

1,826,695

2,736,481

868,944

2,375,800

3,381,686

4,866,499

5,485,015

6,112,364

6,481,209

Cash at bank

2,350

2,266

11,088

26,565

33,037

31,338

58,831

87,223

131,880

197,326

Amounts due from brokers

39,405

66,518

118,976

233,507

144,327

182,086

265,406

300,109

336,627

360,343

Current assets

496,290

1,957,752

3,942,516

1,328,061

2,827,476

3,976,705

5,687,198

6,447,802

7,236,168

7,758,051

Total assets

502,580

1,961,951

3,987,888

1,388,480

2,889,313

4,034,196

5,743,034

6,502,057

7,288,918

7,809,373

Share capital

2,215

31

34

34

34

34

34

34

34

34

Share premium

111

2,387

30,781

30,781

30,691

30,691

30,691

30,691

30,691

30,691

Other reserves

168,813

1,209,630

667,846

(22,500)

522,252

522,845

522,845

522,845

522,845

522,845

Retained earnings

(125,795)

(1,155,551)

(497,727)

195,644

(314,203)

(271,532)

(215,902)

(160,234)

(113,510)

(73,719)

Total equity

45,343

56,497

200,934

203,959

238,774

282,037

337,668

393,335

440,059

479,850

Trade payables and other liabilities

419,340

1,792,936

3,491,612

1,025,734

2,464,885

3,548,487

5,172,230

5,848,533

6,560,204

7,022,381

Amounts due to brokers

37,631

112,121

292,708

135,385

159,407

177,424

206,889

233,941

262,408

280,895

Lease liabilities

0

0

0

581

564

564

564

564

564

564

Current tax liabilities

266

398

2,635

236

149

149

149

149

149

149

Current liabilities

457,237

1,905,454

3,786,955

1,161,937

2,625,005

3,726,625

5,379,833

6,083,188

6,823,325

7,303,989

Non-current liabilities

0

0

0

22,584

25,534

25,534

25,534

25,534

25,534

25,534

Total equity and liabilities

502,580

1,961,951

3,987,888

1,388,480

2,889,313

4,034,196

5,743,034

6,502,057

7,288,918

7,809,373

Ratios

 

 

 

 

Adj. EBITDA margin

54.0%

62.8%

85.3%

-19.1%

69.2%

61.7%

62.7%

61.0%

56.8%

52.6%

Adj. net margin

38.4%

47.6%

79.9%

8.9%

46.2%

53.5%

54.3%

52.6%

47.7%

42.5%

Source: Coin Shares International data, Edison Investment Research. Note: *Adjusted basic EPS as adjusted diluted EPS is not available for FY23. **Edison Investment Research forecast.


General disclaimer and copyright

This report has been commissioned by CoinShares International and prepared and issued by Edison, in consideration of a fee payable by CoinShares International. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

General disclaimer and copyright

This report has been commissioned by CoinShares International and prepared and issued by Edison, in consideration of a fee payable by CoinShares International. Edison Investment Research standard fees are £60,000 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services.

Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations.

Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note.

No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors.

Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest.

Copyright: Copyright 2024 Edison Investment Research Limited (Edison).

Australia

Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Crown Wealth Group Pty Ltd who holds an Australian Financial Services Licence (Number: 494274). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.

New Zealand

The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.

United Kingdom

This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document.

This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.

United States

Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person.

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

London │ New York │ Frankfurt

20 Red Lion Street

London, WC1R 4PS

United Kingdom

More on CoinShares International

View All

Latest from the Financials sector

View All Financials content
Futuristic global business

Financials

ProCredit Holding — A solid start to 2024

Financials

Alpha Bank — Q1 beat, buy-back proposal

Financials

Record — AUME momentum and a sharper focus

Financials

JDC Group — Well on track in 2024

Research: Real Estate

Primary Health Properties — Stability with income growth

The key feature of Primary Health Properties’ (PHP’s) 2023 results was the further acceleration in rental uplifts, rising at the fastest pace for 15 years. This is driving organic earnings growth to fully cover progressive dividends, which are now in the 28th year of unbroken increase.

Continue Reading

Subscribe to Edison

Get access to the very latest content matched to your personal investment style.

Sign up for free