Cryptocurrency investment group CoinShares recently published its first quarter earnings report for 2023 amid what it\u2019s calling a \u201creturn to profitability.\u201d\u00a0<\/p>\n
Highlights of the report include revenue in the amount of $11.73 million (down from $22.46 million in Q1 2022), total comprehensive income of $3.62 million (down from $25.83 million in Q1 2022) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $10.61 million (down from $25.83 million in Q1 2022).<\/p>\n
Overall, for 2022, CoinShares posted an operating loss of $25.21 million, in stark contrast to the company\u2019s operating profit of $126.54 million reported for 2021.<\/p>\n
Per the report, this comes after a tumultuous period for the company and the cryptocurrency industry as a whole:<\/p>\n
\u201cIn Q1 2023, as in 2022, the financial and crypto industries faced a challenging and complex\u00a0landscape. Against this backdrop CoinShares demonstrated a powerful resilience. During\u00a0the quarter we generated revenue and gains of \u00a315.3 million and successfully returned to\u00a0profitability, with Adjusted EBITDA of \u00a38.5 million. This resulted in an Adjusted EBITDA margin of 55%.”<\/p><\/blockquote>\n
The report cites the recent collapse of \u201ccrypto friendly banks such as Silvergate and Signature\u201d and regulatory scrutiny surrounding FTX\u2019s \u201cdramatic decline\u201d as mitigating factors for the earnings, indicating profits may have been diminished by the looming specter of government oversight. <\/p>\n
CoinShares appears cautiously optimistic going forward, stating that \u201cwe welcome this\u00a0additional regulatory activity but hope it does not devolve into a witch hunt or become a consequence of crypto politicisation ahead of the U.S. elections, as some commentators have speculated.\u201d<\/p>\n
The earnings report comes directly on the heels of CoinShares\u2019 \u201cDigital Asset Fund Flows Report,\u201d which, as Cointelegraph reported, revealed that digital asset investment product outflows totaled $54 million for the week, meaning that much was transferred from the exchange to wallets.<\/p>\n
According to CoinShares, the recent trends toward outflows can at least be partially blamed on consumer and industry speculation related to United States federal interest rate hikes. As mentioned in a previous Cointelegraph report, such speculation may be a contributing factor to recent Bitcoin (BTC) volatility.<\/p>\n