THE DAILY ENCRYPT

September 30, 2022

CoinShares Reports in Q2 Earnings a Loss Due to Terra (UST) Exposure

CoinShares reported a 128% drop in adjusted EBITDA for the second quarter. The losses reported by the firm from TerraUSD (UST exposure) were barely more...
Image by CoinShares

CoinShares reported a 128% drop in adjusted EBITDA for the second quarter. The losses reported by the firm from TerraUSD (UST exposure) were barely more than $21 million. The CEO of the firm stated that the company had suffered losses from its TerraUSD (UST) exposure of just over $21 million.

The digital asset manager CoinShares reported losses for the second quarter. They suffered losses of over $21,000,000 due to the de-pegging of TerraUSD (UST) and its subsequent collapse.

EBITDA, which is a measure of financial performance, was negative by PS8.2million (just under $10 million). According to Tuesday’s statement, this is down from the PS28.6million positive EBITDA a year ago.

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According to the firm, the company’s negative performance was caused by decreased revenue, losses and gains related to TerraUSD’s collapse as well the ongoing costs of its expansion. CoinShares’ TerraUSD position was $120 Million at one point. However, it reduced its risk during de-pegging to a loss just over $21million.

Richard Nash, CFO of the firm, said that it is being more cautious with its growth plans in earnings calls. However, the firm wants to be ready for the next period’s growth in crypto.

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Jean-Marie Mognetti, CoinShares CEO, shared his thoughts on contagion within the crypto space. He stated that we have seen the worst contagion before but acknowledged there may be some contagion risk to Asia.

Responding to questions about Maple Finance and TrueFi, Mognetti was especially critical of centralised lending platforms. Mognetti stated that centralised lending platforms are opaque. He then said that decentralized protocols were the future of finance.

The CoinShares stock price fell 0.48% Tuesday at 30.95 SEK, or approximately $3.03. On July 27, the stock traded as low as 26.30 SEK, just a week before.

Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".
Elena Argyros

Elena Argyros

Elena is cryptocurrency writer / journalist based in Europe. She has extensive knowledge in the crypto space and is a solidity programmer by trade. Elena has built an extensive resume working with some of the most ground breaking blockchain firms. Being in Europe, Elena has amassed a large network of professionals in the space and states "The technology behind blockchain is going to impact everyone on earth in a good way, once you get to understand it".

© 2022 The Daily Encrypt. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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