CoinShares - Strong earnings and new activities in Q421

CoinShares International (CS) continued to broaden its business model by 1) entering the business to customer (B2C) segment with the acquisition of Napoleon Crypto, 2) commencing decentralised finance (DeFi) yield farming operations, as well as 3) launching new exchange traded products (ETPs). CS’s new investments (both in new business verticals and capital markets activities) are fuelled by strong cash generation, primarily from XBT Provider unit redemptions and CSCM gains (with FY21 cash inflows of £28.8m and £62.2m, respectively). While digital asset prices have retraced visibly from the November 2021 highs, we see continued signs of mainstream crypto adoption, representing an important secular tailwind.