CoinShares Loses $21.7M In Q2 Earnings, Terra Crisis To Blame

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Coinshares joins the list of crypto firms that have had to bear the negative impact of the Terra crash. 

Yesterday, August 2nd, the European-based cryptocurrency investment firm, CoinShares disclosed its Q2 earnings for 2022. As per the reports, the firm’s income has dropped from 19.6 million pounds ($23.89 million) to 14.2 million pounds ($17.31 million). Additionally, the total earnings declined from Q1’s 26.6 million pounds (32.42 million) to 0.1 million pounds ($0.12 million).

CoinShares reveals that these losses were primarily associated with the Terra (LUNA), now known as Terra Classic (LUNC), crisis in May 2022. The firm further claims that the de-pegging of Terra (LUNA) brought a loss of 17.7 million pounds to the Capital market business.

CoinShares never held any position directly with any company. However, one of the firm’s books was connected with TerraUSD stablecoin, resulting in huge losses.

CoinShares’s CEO, Jean-Marie Mognetti, expressed his positive thoughts regarding the firm’s upcoming functionality. The CEO claims that the firm has enough funds to move the markets at the time of volatility and says it’s all possible because of strategy, balance sheet, and a unique team.

While talking about future plans, the firm claims that they are planning to get listed in the Nasdaq Stockholm Main Market, but this can happen only after acquiring Alternative Investment fund Manager licenseIn Q2, CoinShares introduced five physical commodities: CoinShares Physical FTX Token, CoinShares Physical Chainlink, CoinShares Physical Uniswap, CoinShares Physical Staked Polygon, and CoinShares Physical Staked Cosmos. The firm has gained 220.8 million pounds ($269.15 million) as a total asset in Q2 as well. 

While discussing the future, the firm claims they plan to get listed in the Nasdaq Stockholm Main Market, but this can happen only after acquiring an Alternative Investment fund Manager license.