CoinShares Q1 net profit falls to $24M

CoinShares, a digital asset investment firm with offices in the United States and Europe, said its net profit fell to $24 million in the first quarter of 2025, a 42.2% decrease from the same period a year ago.

Although CoinShares’s profits and EBITDA remained positive in Q1 2025, the margins declined compared to the same period in 2024. Last year, CoinShares posted a net profit of $41.5 million and an EBITDA of $35.5 million in the first three months. Year-over-year, CoinShares’s net profit dropped 42.2% and its EBITDA fell 15.5%.

The firm’s ETPs contributed to the quarter's performance. For Q1 2025, CoinShares’s ETPs saw net inflows of $268 million, with $202 million coming from its Physical Bitcoin (BITC) ETP. Revenue related to assets under management increased from $24.5 million to $29.6 million, a rise of 20.8%.

Year-to-date, CoinShares’s stock is down 9.4%, according to Google Finance.

In a letter to shareholders, the company's CEO, Jean-Marie Mognetti, said macroeconomic headwinds during the quarter exceeded market movements. “What we are witnessing is not mere market volatility — it is a wholesale transformation of the global economic order.”

According to Mognetti, Ether's underperformance over the quarter led to $23 million in outflows from its CoinShares Physical Staked Ethereum ETP (ETHE). "Due to broader market corrections — including a 12.1% decline in Bitcoin prices — assets under management (AuM) fell 10.7%, closing Q1 at $1.52 billion.”

Related: Robinhood beats Q1 estimates despite revenue, crypto trading dip

The first wave of Q1 2025 earnings from crypto firms suggests a broadly negative quarter, with revenue declines across sectors.

Coinbase revenue, for instance, fell 10% quarter-over-quarter in Q1 2025, as transaction revenue plummeted 19% to $1.3 billion. Kraken, another US-based cryptocurrency exchange, saw its revenue decline 7% from Q4 2024. Michael Saylor’s Bitcoin treasury company, Strategy, also missed Wall Street's estimates, alongside Bitcoin miner Core Scientific.

The quarter was marked by high volatility across financial markets after US President Donald Trump unleashed global tariffs on trade partners, dragging the BTC price to lows of $78,000 over the period. Ether (ETH) also experienced a significant pullback.

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