CoinShares Q2 Earnings Call Highlights

Key Points

• Revenue and profitability declined in the first half of 2026 as Bitcoin and Ethereum prices fell sharply. Revenue dropped to $51.4 million, while segment EBITDA fell to $21.6 million, including $4.9 million in Nasdaq listing and transition costs.
• Despite market-driven AUM losses, CoinShares recorded positive client flows, including approximately $156 million into its CoinShares Physical platform. AUM recovered from $5.5 billion at June-end to about $6.9 billion by the end of August.
• The company ended June with no long-term debt and $413.9 million in available capital, while pursuing cost reductions, new active and tokenization-related strategies, and shareholder approval for a potential repurchase authority covering up to 25% of outstanding shares.

CoinShares NASDAQ: CSHR reported lower revenue and profitability for the first half of 2026 as digital-asset prices fell sharply, though the company said positive client flows and a debt-free balance sheet positioned it to participate in a market recovery.

The company’s first earnings presentation since completing its Nasdaq listing came after Bitcoin declined about 32% during the first half, while Ethereum fell about 48%, according to Chief Executive Officer Jean-Marie Mognetti. Assets under management ended June at $5.5 billion, down from $7.4 billion at the end of December 2025.

Interim Chief Financial Officer Richard Nash said approximately $1.9 billion of the AUM decline was attributable to market movements, while CoinShares recorded roughly $28 million of net inflows across its platforms. By the end of August, AUM had recovered to about $6.9 billion, supported by higher digital-asset prices and approximately $74 million of positive net flows through Aug. 31.

Revenue and earnings decline amid market contraction

Total GAAP revenue was $51.4 million in the first half, compared with $80 million a year earlier. Asset-management revenue was $40 million, down 33%, primarily reflecting lower average AUM. The capital-markets segment generated $14.9 million in revenue and gains, down from $26.5 million in the prior-year period.

CoinShares reported segment EBITDA of $21.6 million, compared with $59 million in the first half of 2025. Nash said the result included approximately $4.9 million in non-recurring costs associated with the Nasdaq listing and the company’s transition to U.S. GAAP. Excluding those costs, segment EBITDA would have been about $26.5 million, he said.

The company’s operating result swung to a $5.1 million loss from a $75.9 million gain a year earlier. Nash attributed the change principally to a $6.1 million share-based compensation charge related to the settlement of a historical option plan and a $34.7 million unfavorable change in the XBT Pricing Differential.

The XBT Pricing Differential moved from an $18.1 million gain in the first half of 2025 to a $16.6 million loss in 2026. Nash described the item as an unrealized effect arising from temporary valuation differences between the group’s underlying spot digital assets and the trading price of its XBT certificate liabilities.

Physical platform draws inflows as product mix changes

Management highlighted the performance of CoinShares Physical, its European physical digital-asset platform, which attracted approximately $156 million in net inflows during the first half. The inflows helped offset outflows from the legacy XBT platform.

Nash said the company’s high-fee products had net flows that were nearly flat, with market movements reducing AUM by approximately 42%. Access products, meanwhile, recorded about 2% positive net flows and were less affected by market declines, in part because of the CoinShares Blockchain Global Equity Index, known as Block.

Block provides exposure to listed companies in the blockchain and digital-asset ecosystem. Its AUM rose to $1.56 billion at June 30 from $1.3 billion at the end of 2025, despite approximately $24 million of net outflows, as underlying equities appreciated. The product was up about 18% by the end of June, management said, contrasting with declines in Bitcoin and Ethereum.

The changing product mix reduced CoinShares’ blended asset-management fee yield to approximately 128 basis points in the first half from 156 basis points in 2025. Nash said this was principally a mix effect rather than widespread pricing pressure, noting that Block and other access products carry lower fees than legacy higher-fee products.

Capital markets operated more conservatively

CoinShares reduced lending activity and balance-sheet deployment as market conditions deteriorated. Staking generated $6.6 million, down from $9.8 million a year earlier, while lending generated $2.4 million, down from $4.9 million. Other revenue and trading gains contributed approximately $7.6 million, compared with $11.7 million in the prior-year period.

Nash said the company deliberately reduced lending exposure when risk-adjusted opportunities became less attractive, prioritizing capital preservation and counterparty-risk management. Despite the lower activity, management said the capital-markets segment remained profitable.

The company also said it had decided to close several underperforming product lines during the second half of the year as part of its cost discipline. Adjusted operating expenses, excluding depreciation, amortization and share-based compensation, were approximately $25.6 million in the first half, including the $4.9 million in listing-related and other non-recurring expenses.

Balance sheet, buyback proposal and growth initiatives

CoinShares ended June with approximately $413.9 million of available capital, $453 million of net assets and no long-term debt. During the first half, it repaid $28.3 million of long-term debt, paid approximately $21.5 million in dividends and incurred about $18.7 million in cash costs to settle part of its historical share option plan.

Mognetti said the board planned to seek shareholder approval for a multiyear repurchase authority covering up to 25% of shares outstanding. Management characterized the authority as a ceiling rather than a commitment to spend a specified amount, with any purchases subject to board discretion and market conditions.

On strategy, Mognetti said CoinShares is expanding beyond passive listed products into active strategies, staking, on-chain infrastructure and new investment exposures. He said the company’s capital-markets business traded more real-world assets than Bitcoin or Ethereum during the first half and is exploring ways to develop products tied to tokenization, including work involving Kiln and Railnet.

The company also discussed its Bastion Asset Management acquisition, which closed in September after regulatory approvals. Mognetti said the acquired team has been integrated and gives CoinShares capabilities in actively managed strategies, complementing its passive and listed-product offerings.

About CoinShares (NASDAQ:CSHR)

CoinShares is a digital asset investment firm that provides investment products and services for institutional, professional and other qualified investors. The company focuses on cryptocurrencies and blockchain-related assets, offering access to digital assets through regulated investment vehicles and portfolio solutions.

Its offerings include physically backed cryptocurrency exchange-traded products, index-based products, actively managed strategies and alternative investment solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.