CoinShares reports $21.7 million loss linked to Terra crash

Advertisement

On Tuesday, European cryptocurrency investment firm CoinShares published its interim results for the second quarter of 2022. Compared to the previous year's quarter, the company's revenue declined from 19.6 million pounds ($23.89 million) to 14.2 million pounds ($17.31 million).

 At the same time, its net income decreased from 26.6 million pounds (32.42 million dollars) in the first quarter of 2021 to 0.1 million pounds (0.12 million dollars).

 CoinShares explained that the losses were largely related to its exposure to the Terra Luna ecosystem - now called Terra Classic - LUNC, which collapsed in May this year: capital markets for a one-time loss of £17.7m following the disengagement of Terra Luna, and the financial impact of this episode, although relatively small when compared to losses incurred by other players in our industry, has had a material impact on our quarter.”

CoinShares reports $21.7 million loss linked to Terra crash
CoinShares reports $21.7 million loss linked to Terra crash

CoinShares Capital Markets usually does not take directional positions and did not directly experience the collapse of Terra Luna, however, at the time of the accident, the company was holding an account linked to the TerraUSD stablecoin, which resulted in an exceptional loss, however, Jean-Marie Mognetti expressed, Coinshares CEO.

 expressed optimism about the company's future operations, saying, "In light of the market turmoil, we have revised our risk profile and moved into a more defensive position. Coinshares has sufficient resources to navigate the markets during this volatile time thanks to an effective strategy and balance sheet. A strong, experienced world-class team."

For its next steps, Coinshares plans to join the main Nasdaq Stockholm market after obtaining an alternative investment fund manager license. During the second quarter.

Coinshares launched five new physical products, and the company's net assets amounted to 220.8 million pounds, 269.15 million dollars at the end of the second quarter.

Advertisemen