Coinshares, the world's second largest encrypted asset management company, will go public on March 11, with an asset management scale of over US$4.5 billion
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On February 22, CoinShares, the world's second largest encrypted asset management company, released a prospectus on its official website, announcing that its listing plan has been approved by the Swedish Financial Supervisory Authority, and that it will be listed on Nasdaq First North Growth in Sweden on March 11. Market (Nasdaq Firth North Growth Market) listing, and initial public offering of 3.36 million shares to investors, the issue price is SEK 44.90 per share, the total market value of the company's shares before the issuance is approximately SEK 2.837 billion (approximately US$342.69 million) , the ticker symbol is "COIN".
It is understood that CoinShares was established in 2013 to provide qualified investors with risk exposure to invest in encrypted assets. In 2014, it launched the world's first regulated Bitcoin investment fund. 9 types of ETP products based on encrypted assets. As of February 19, 2021, CoinShares managed assets of US$4.56 billion, including 70,185 BTC and 655,211 ETH. It is the largest encrypted asset management company in Europe and the second largest encrypted asset in the world after Grayscale. management company.
In contrast, as of February 24, Grayscale’s overall asset management scale was US$39.3 billion, Bitwise’s asset management scale had just exceeded US$1 billion, and Galaxy Digital’s asset management scale as of January 31 was US$834.7 million.
According to the prospectus, CoinShares achieved operating income of 11.3 million pounds in the first three quarters of 2020, an operating loss of 187 million pounds, but a net profit of 14.29 million pounds. According to the chain catcher, the reason why CoinShares suffered a large operating loss is that the corresponding liabilities to ETP holders have increased significantly, but the digital assets held by the company for hedging debts have increased significantly, thus offsetting all losses.
As of September 30, 2020, CoinShares' total assets were 808 million pounds, and its net assets after deducting liabilities were 59.64 million pounds.
At present, CoinShares mainly has two business segments: passive products and capital markets. It is understood that CoinShares passive products provide ETPs that track the price of specific digital assets, providing customers with exposure to digital assets such as BTC, ETH, LTC and XRP. In the future, ETP products related to BCH, ETC and NEO may be launched. CoinShares will charge an annualized 2.5% management fee for all ETP products, which is also the company's main source of income.
CoinShares capital market business focuses on trading activities, providing trading liquidity for the above-mentioned ETP products and conducting hedging transactions and hedging. In 2020, the total transaction volume of this business reached 7.577 billion US dollars, an increase of 232.3% compared with 2019.
In addition, CoinShares also provides clients with active strategies, index strategies and consulting services. On February 22, CoinShares and Imperial College London issued the DeFi index token CGI based on a basket of assets such as WBTC, WETH and wGOLD on Ethereum, and it was mainly sold to institutional investors.
The prospectus also disclosed that CoinShares made multiple investments late last year. On December 31 last year, CoinShares signed an agreement with 3IQ Corp, a Canadian encryption asset management company, to acquire a 9% stake in the company for US$2.25 million; million to acquire an 8% stake in the company.
According to the prospectus, 30% of the public offering funds will be used to strengthen the company's balance sheet, thereby enhancing the capabilities of CoinShares Capital Market's internal trading team; 20% will be used to develop and distribute new products to expand product range; 20% will be used to Used to acquire potential business.
