Cryptocurrency investment group CoinShares has released its Q1 2023 earnings report, reporting a “return to profitability” after a tumultuous period for the company and the industry. The report highlights Q1 revenue of $11.73 million, a total comprehensive income of $3.62 million, and adjusted EBITDA of $10.61 million.
While CoinShares posted a loss of $25.21 million for 2022, the Q1 earnings report indicates a hopeful future for the company despite challenges in the industry. CoinShares generated revenue and gains of £15.3 million and returned to profitability with Adjusted EBITDA of £8.5 million in Q1 2023.
“Against this backdrop CoinShares demonstrated a powerful resilience. During the quarter we generated revenue and gains of £15.3 million and successfully returned to profitability, with Adjusted EBITDA of £8.5 million. This resulted in an Adjusted EBITDA margin of 55%.”
The report cites regulatory scrutiny and the collapse of crypto-friendly banks as mitigating factors for the company’s earnings. Despite these challenges, CoinShares remains cautiously optimistic, welcoming additional regulatory activity while also hoping it doesn’t become a consequence of crypto politicization.
CoinShares’ “Digital Asset Fund Flows Report” released earlier also revealed that digital asset investment product outflows totaled $54 million for the week, partially attributed to speculation related to federal interest rate hikes. This speculation may have contributed to recent Bitcoin volatility.