Collection

European crypto asset management firm CoinShares merged with special purpose acquisition company Vine Hill Capital Investment Corp on September 8, achieving a backdoor listing on Nasdaq. This makes it the first European Web3 company to list in the U.S., with a valuation of $1.2 billion, representing a 37% premium over its European market value.

Company Background

Formerly known as Global Advisors, established in 1998, the company pivoted to the digital asset space in 2014 and was renamed CoinShares in 2016. It has since evolved into a comprehensive crypto asset management institution integrating asset management, capital markets, and proprietary investments.

Business Development

In 2021, CoinShares went public in Sweden and was once Europe's largest and the world's second-largest crypto asset management company, with assets under management (AUM) reaching $4.56 billion. In early 2024, it acquired Valkyrie, a U.S. Bitcoin spot ETF issuer. Its current AUM exceeds $8 billion, ranking fourth globally.

Financial Performance

In Q1 2025, revenue was $39.958 million, and Q2 revenue increased by 3.8% quarter-over-quarter to $41.519 million. However, profit margins and some business segments showed volatility. The asset management business accounted for about 74% of total revenue but experienced slow growth. Capital markets and proprietary investments were significantly impacted by market fluctuations.

Challenges and Prospects

CoinShares faces potential competition from U.S. asset management giants. To sustain its current high valuation and future growth, it must build a moat in non-U.S. markets while expanding its U.S. operations.

Summary

Author: Eric, Foresight News

Following in the footsteps of Coinbase, Galaxy Digital, Circle, Bullish, and Gemini, the U.S. stock market is set to welcome another Web3 company.

On September 8, European crypto asset management firm CoinShares merged with Vine Hill Capital Investment Corp, a special purpose acquisition company listed on Nasdaq, and Odysseus Holdings Limited, a newly established Jersey-based company. Post-merger, CoinShares will list on Nasdaq (or another U.S. exchange) and delist from Nasdaq Stockholm. After a series of U.S.-based Web3 companies went public, the first European本土 Web3 enterprise will also enter the U.S. capital market.

CoinShares originated from Global Advisors, a commodity investment company founded in 1998 by Russell Newton and Danny Masters. Russell Newton worked in crude oil trading for eight years, including at Shell Oil, before joining J.P. Morgan as a commodity strategist in July 1994. Co-founder Danny Masters, now Chairman of CoinShares, served as Global Head of Energy Trading at J.P. Morgan before co-founding Global Advisors.

The current CEO of CoinShares, economist Jean-Marie Mognetti, joined Global Advisors in 2012. Just a year after his joining, global macro investors began withdrawing from commodities en masse, shifting to stocks and fixed income. For the trio, the company urgently needed a new investment direction, and Bitcoin, then priced at a few hundred dollars, caught their attention.

Without hesitation, Global Advisors fully transitioned to the digital asset space in 2014, rebranding as CoinShares in 2016. It gradually developed into today's integrated crypto asset management firm, encompassing asset management, capital markets, and proprietary investments.

In 2014, Global Advisors launched Europe's first regulated Bitcoin investment fund. After rebranding, CoinShares acquired XBT Provider, which launched the first Bitcoin-based security listed on a regulated exchange. Its Bitcoin Tracker One ETP debuted in Sweden in 2015.

In early 2021, CoinShares began offering physically-backed ETPs (exchange-traded products), covering not only Bitcoin and Ethereum but also tokens like LTC, XRP, LINK, and UNI. In March of the same year, CoinShares went public in Sweden, becoming the world's second listed Web3 company after Galaxy Digital (which had already listed on the Toronto Stock Exchange). According to data provided by CoinShares, as of February 19, 2021, its AUM was $4.56 billion, including 70,185 Bitcoin and 655,211 Ethereum, making it Europe's largest and the world's second-largest crypto asset management company at the time (after Grayscale).

In comparison, as of February 24, 2021, Grayscale's total AUM was $39.3 billion, Bitwise's AUM had just surpassed $1 billion, and Galaxy Digital's AUM was $834.7 million as of January 31, 2021.

In early 2024, after the SEC approved Bitcoin spot ETFs from several institutions, CoinShares acquired Valkyrie, one of the issuers. As of the time of writing, Valkyrie's Bitcoin spot ETF AUM exceeds $650 million.

Besides asset management, investment is a significant business for CoinShares. At the time of its 2021 listing, CoinShares disclosed its investments in Canadian crypto asset management firm 3iQ Corp and the parent company of U.S. qualified trust institution Kingdom Trust, made in late 2020. In 2021 and 2022, CoinShares twice invested in Swiss online bank FlowBank, holding nearly 30% of shares at its peak. However, FlowBank went bankrupt and liquidated in 2022 due to insolvency.

Now, let's discuss CoinShares' financial performance.

Comparing CoinShares' Q1 and Q2 financial reports released this year, Q1 revenue was $39.958 million, down approximately 15.88% year-over-year. EBITDA was $29.781 million, down about 15.7% year-over-year, but the profit margin reached 75%, slightly higher than the previous year. Including changes in the value of the company's self-held crypto assets and taxes, CoinShares' comprehensive income for Q1 was approximately $24.79 million, down 42.1% year-over-year.

In the asset management business, which accounts for the highest proportion, CoinShares recorded revenue of $29.566 million in Q1, about 74% of total revenue, up approximately 20.8% year-over-year. Profit after direct costs and administrative expenses was about $22.714 million, up about 5% year-over-year.

In the capital markets infrastructure business, CoinShares recorded approximately $11.911 million in Q1, down about 15.4% year-over-year. This business includes liquidity provision revenue, delta-neutral trading strategy revenue, digital asset lending, and staking revenue. Profit after direct costs and administrative expenses was about $9.335 million, down about 18.7% year-over-year.

In proprietary investments, CoinShares lost approximately $1.519 million in Q1, compared to a profit of about $8.942 million in the same period last year, a drastic decline of about 117%.

Due to the overall decline in cryptocurrency prices in Q1, only the asset management business, which is less affected by price fluctuations, showed growth, while other segments declined. Detailed financial reports indicate that liquidity provision, lending, and staking revenues in the capital markets infrastructure business were significantly impacted by price declines and reduced trading activity, though delta-neutral strategy trading offset some losses. Investment performance was dragged down by the overall market decline. Overall, CoinShares did not see a decline in its core business and was actively adjusting its investment strategies.

In Q2, cryptocurrency prices generally rose, but CoinShares' business did not experience significant growth.

Q2 revenue was $41.519 million, up about 3.8% quarter-over-quarter and surging 258.3% year-over-year. EBITDA was $26.299 million, down 11.7% quarter-over-quarter and about 22.7% year-over-year, with the profit margin dropping to 63%. Comprehensive income for Q2 was approximately $25.578 million, up about 3.2% quarter-over-quarter and 1.1% year-over-year.

For the first half of the year, due to losses from FlowBank's bankruptcy and income from selling FTX claims in 2024, the data is somewhat distorted (explaining the abnormal year-over-year revenue surge). Excluding these factors, CoinShares' performance in the first half of this year was largely unchanged from the same period last year.

In asset management, Q2 revenue slightly exceeded $30 million, up 1.6% quarter-over-quarter and 6.1% year-over-year. Operating profit was $21.748 million, down about 4.3% quarter-over-quarter and 10.3% year-over-year. For the first half, total asset management revenue was approximately $59.613 million, up 12.4% year-over-year, while operating profit was $44.462 million, down 3.5% year-over-year.

CoinShares noted that products under its XBT series saw net outflows of $126 million in Q2, and the company allocated more expenses to the asset management department, leading to increased revenue but declining profits.

In capital markets infrastructure, Q2 revenue was approximately $11.346 million, down 2% quarter-over-quarter and 22.3% year-over-year. Excluding additional income from the sale of FTX claims, both profit and profit margin declined.

In proprietary investments, CoinShares recorded a profit of nearly $125,000 in Q2. While this represents an improvement compared to the Q1 loss of about $1.519 million, investment gains and losses are somewhat random over time, limiting their reference value. Notably, CoinShares has been incurring investment losses throughout 2024 and into 2025, whereas it achieved a profit of nearly $3.7 million in investments in 2023.

Although CoinShares stated in its roadshow materials that its total AUM has exceeded $8 billion, making it the world's fourth-largest crypto asset management institution after BlackRock, Grayscale, and Fidelity, and the largest in the EMEA region (Europe, Middle East, and Africa) with about 34% market share, the above data indicate that its growth is relatively slow. Aside from steady but modest growth in asset management, other business segments show significant volatility. CoinShares' acquisition of Valkyrie and its U.S. listing are essentially efforts to expand its U.S. operations, though its home market lacks a unique moat.

According to ISS Market Intelligence data, as of the end of May this year, the AUM of U.S. fund companies in Europe grew from $2.2 trillion a decade ago to $4.9 trillion. If U.S. asset management giants decide to expand their crypto asset management business to Europe, CoinShares will face formidable competition.

Assuming the SEC approves more cryptocurrency ETFs in the future, CoinShares' current advantages may gradually erode. Based on its European stock closing price yesterday, CoinShares' market capitalization is approximately SEK 8.228 billion, or about $877 million, with a P/E ratio of about 7.97. However, its "backdoor listing" valuation reached $1.2 billion, a premium of nearly 37%.

Compared to BlackRock, the world's largest asset management company with an AUM of $12.5 trillion as of Q2 this year, CoinShares' ratio of AUM to market capitalization far exceeds BlackRock's, but its P/E ratio is significantly lower than BlackRock's nearly 27. This creates a contradictory valuation scenario for CoinShares. Although crypto asset management will remain highly attractive for the foreseeable future, whether CoinShares' market capitalization can grow significantly depends rationally on whether its asset management business can achieve超预期 growth, establish a moat in non-U.S. markets, and capture a share of the U.S. market.

Collection

European crypto asset management firm CoinShares merged with special purpose acquisition company Vine Hill Capital Investment Corp on September 8, achieving a backdoor listing on Nasdaq. This makes it the first European Web3 company to list in the U.S., with a valuation of $1.2 billion, representing a 37% premium over its European market value.

Company Background

Formerly known as Global Advisors, established in 1998, the company pivoted to the digital asset space in 2014 and was renamed CoinShares in 2016. It has since evolved into a comprehensive crypto asset management institution integrating asset management, capital markets, and proprietary investments.

Business Development

In 2021, CoinShares went public in Sweden and was once Europe's largest and the world's second-largest crypto asset management company, with assets under management (AUM) reaching $4.56 billion. In early 2024, it acquired Valkyrie, a U.S. Bitcoin spot ETF issuer. Its current AUM exceeds $8 billion, ranking fourth globally.

Financial Performance

In Q1 2025, revenue was $39.958 million, and Q2 revenue increased by 3.8% quarter-over-quarter to $41.519 million. However, profit margins and some business segments showed volatility. The asset management business accounted for about 74% of total revenue but experienced slow growth. Capital markets and proprietary investments were significantly impacted by market fluctuations.

Challenges and Prospects

CoinShares faces potential competition from U.S. asset management giants. To sustain its current high valuation and future growth, it must build a moat in non-U.S. markets while expanding its U.S. operations.

Summary

Author: Eric, Foresight News

Following in the footsteps of Coinbase, Galaxy Digital, Circle, Bullish, and Gemini, the U.S. stock market is set to welcome another Web3 company.

On September 8, European crypto asset management firm CoinShares merged with Vine Hill Capital Investment Corp, a special purpose acquisition company listed on Nasdaq, and Odysseus Holdings Limited, a newly established Jersey-based company. Post-merger, CoinShares will list on Nasdaq (or another U.S. exchange) and delist from Nasdaq Stockholm. After a series of U.S.-based Web3 companies went public, the first European本土 Web3 enterprise will also enter the U.S. capital market.

CoinShares originated from Global Advisors, a commodity investment company founded in 1998 by Russell Newton and Danny Masters. Russell Newton worked in crude oil trading for eight years, including at Shell Oil, before joining J.P. Morgan as a commodity strategist in July 1994. Co-founder Danny Masters, now Chairman of CoinShares, served as Global Head of Energy Trading at J.P. Morgan before co-founding Global Advisors.

The current CEO of CoinShares, economist Jean-Marie Mognetti, joined Global Advisors in 2012. Just a year after his joining, global macro investors began withdrawing from commodities en masse, shifting to stocks and fixed income. For the trio, the company urgently needed a new investment direction, and Bitcoin, then priced at a few hundred dollars, caught their attention.

Without hesitation, Global Advisors fully transitioned to the digital asset space in 2014, rebranding as CoinShares in 2016. It gradually developed into today's integrated crypto asset management firm, encompassing asset management, capital markets, and proprietary investments.

In 2014, Global Advisors launched Europe's first regulated Bitcoin investment fund. After rebranding, CoinShares acquired XBT Provider, which launched the first Bitcoin-based security listed on a regulated exchange. Its Bitcoin Tracker One ETP debuted in Sweden in 2015.

In early 2021, CoinShares began offering physically-backed ETPs (exchange-traded products), covering not only Bitcoin and Ethereum but also tokens like LTC, XRP, LINK, and UNI. In March of the same year, CoinShares went public in Sweden, becoming the world's second listed Web3 company after Galaxy Digital (which had already listed on the Toronto Stock Exchange). According to data provided by CoinShares, as of February 19, 2021, its AUM was $4.56 billion, including 70,185 Bitcoin and 655,211 Ethereum, making it Europe's largest and the world's second-largest crypto asset management company at the time (after Grayscale).

In comparison, as of February 24, 2021, Grayscale's total AUM was $39.3 billion, Bitwise's AUM had just surpassed $1 billion, and Galaxy Digital's AUM was $834.7 million as of January 31, 2021.

In early 2024, after the SEC approved Bitcoin spot ETFs from several institutions, CoinShares acquired Valkyrie, one of the issuers. As of the time of writing, Valkyrie's Bitcoin spot ETF AUM exceeds $650 million.

Besides asset management, investment is a significant business for CoinShares. At the time of its 2021 listing, CoinShares disclosed its investments in Canadian crypto asset management firm 3iQ Corp and the parent company of U.S. qualified trust institution Kingdom Trust, made in late 2020. In 2021 and 2022, CoinShares twice invested in Swiss online bank FlowBank, holding nearly 30% of shares at its peak. However, FlowBank went bankrupt and liquidated in 2022 due to insolvency.

Now, let's discuss CoinShares' financial performance.

Comparing CoinShares' Q1 and Q2 financial reports released this year, Q1 revenue was $39.958 million, down approximately 15.88% year-over-year. EBITDA was $29.781 million, down about 15.7% year-over-year, but the profit margin reached 75%, slightly higher than the previous year. Including changes in the value of the company's self-held crypto assets and taxes, CoinShares' comprehensive income for Q1 was approximately $24.79 million, down 42.1% year-over-year.

In the asset management business, which accounts for the highest proportion, CoinShares recorded revenue of $29.566 million in Q1, about 74% of total revenue, up approximately 20.8% year-over-year. Profit after direct costs and administrative expenses was about $22.714 million, up about 5% year-over-year.

In the capital markets infrastructure business, CoinShares recorded approximately $11.911 million in Q1, down about 15.4% year-over-year. This business includes liquidity provision revenue, delta-neutral trading strategy revenue, digital asset lending, and staking revenue. Profit after direct costs and administrative expenses was about $9.335 million, down about 18.7% year-over-year.

In proprietary investments, CoinShares lost approximately $1.519 million in Q1, compared to a profit of about $8.942 million in the same period last year, a drastic decline of about 117%.

Due to the overall decline in cryptocurrency prices in Q1, only the asset management business, which is less affected by price fluctuations, showed growth, while other segments declined. Detailed financial reports indicate that liquidity provision, lending, and staking revenues in the capital markets infrastructure business were significantly impacted by price declines and reduced trading activity, though delta-neutral strategy trading offset some losses. Investment performance was dragged down by the overall market decline. Overall, CoinShares did not see a decline in its core business and was actively adjusting its investment strategies.

In Q2, cryptocurrency prices generally rose, but CoinShares' business did not experience significant growth.

Q2 revenue was $41.519 million, up about 3.8% quarter-over-quarter and surging 258.3% year-over-year. EBITDA was $26.299 million, down 11.7% quarter-over-quarter and about 22.7% year-over-year, with the profit margin dropping to 63%. Comprehensive income for Q2 was approximately $25.578 million, up about 3.2% quarter-over-quarter and 1.1% year-over-year.

For the first half of the year, due to losses from FlowBank's bankruptcy and income from selling FTX claims in 2024, the data is somewhat distorted (explaining the abnormal year-over-year revenue surge). Excluding these factors, CoinShares' performance in the first half of this year was largely unchanged from the same period last year.

In asset management, Q2 revenue slightly exceeded $30 million, up 1.6% quarter-over-quarter and 6.1% year-over-year. Operating profit was $21.748 million, down about 4.3% quarter-over-quarter and 10.3% year-over-year. For the first half, total asset management revenue was approximately $59.613 million, up 12.4% year-over-year, while operating profit was $44.462 million, down 3.5% year-over-year.

CoinShares noted that products under its XBT series saw net outflows of $126 million in Q2, and the company allocated more expenses to the asset management department, leading to increased revenue but declining profits.

In capital markets infrastructure, Q2 revenue was approximately $11.346 million, down 2% quarter-over-quarter and 22.3% year-over-year. Excluding additional income from the sale of FTX claims, both profit and profit margin declined.

In proprietary investments, CoinShares recorded a profit of nearly $125,000 in Q2. While this represents an improvement compared to the Q1 loss of about $1.519 million, investment gains and losses are somewhat random over time, limiting their reference value. Notably, CoinShares has been incurring investment losses throughout 2024 and into 2025, whereas it achieved a profit of nearly $3.7 million in investments in 2023.

Although CoinShares stated in its roadshow materials that its total AUM has exceeded $8 billion, making it the world's fourth-largest crypto asset management institution after BlackRock, Grayscale, and Fidelity, and the largest in the EMEA region (Europe, Middle East, and Africa) with about 34% market share, the above data indicate that its growth is relatively slow. Aside from steady but modest growth in asset management, other business segments show significant volatility. CoinShares' acquisition of Valkyrie and its U.S. listing are essentially efforts to expand its U.S. operations, though its home market lacks a unique moat.

According to ISS Market Intelligence data, as of the end of May this year, the AUM of U.S. fund companies in Europe grew from $2.2 trillion a decade ago to $4.9 trillion. If U.S. asset management giants decide to expand their crypto asset management business to Europe, CoinShares will face formidable competition.

Assuming the SEC approves more cryptocurrency ETFs in the future, CoinShares' current advantages may gradually erode. Based on its European stock closing price yesterday, CoinShares' market capitalization is approximately SEK 8.228 billion, or about $877 million, with a P/E ratio of about 7.97. However, its "backdoor listing" valuation reached $1.2 billion, a premium of nearly 37%.

Compared to BlackRock, the world's largest asset management company with an AUM of $12.5 trillion as of Q2 this year, CoinShares' ratio of AUM to market capitalization far exceeds BlackRock's, but its P/E ratio is significantly lower than BlackRock's nearly 27. This creates a contradictory valuation scenario for CoinShares. Although crypto asset management will remain highly attractive for the foreseeable future, whether CoinShares' market capitalization can grow significantly depends rationally on whether its asset management business can achieve超预期 growth, establish a moat in non-U.S. markets, and capture a share of the U.S. market.