On February 22, coinshares, the world's second largest crypto asset management company, issued a prospectus on its official website, announcing that its listing plan had been approved by the Swedish financial regulatory authority. It would be listed on the NASDAQ Firth North growth market in Sweden on March 11. It also offered 3.36 million shares to investors at a price of SEK 44.90 per share,Before the offering, the total market value of the company's shares was about SEK 2837 million (about US $342.69 million), and the stock code was "coin".
It is understood that coinshares was established in 2013 to provide qualified investors with risk exposure to invest in crypto assets. In 2014, it launched the world's first regulated bitcoin investment fund. Since then, it has issued nine types of ETP products based on encrypted assets in several exchanges such as the German Stock Exchange.
As of February 19, 2021, coinshares has assets under management of US $4.56 billion, including 70185 BTCs and 655211 eth. It is the largest encryption asset management company in Europe and the second largest encryption asset management company in the world after gray company.
By contrast, as of February 24, the overall asset management scale of gray scale was 39.3 billion US dollars, that of bitwise was just over 1 billion US dollars, and that of Galaxy digital as of January 31 was 834.7 million US dollars.
According to the prospectus, coinshares achieved an operating income of 11.3 million pounds in the first three quarters of 2020, with an operating loss of 187 million pounds, but a net profit of 14.29 million pounds.According to chain catchers, coinshares suffered a significant operating loss because of a significant increase in the corresponding liabilities to ETP holders, but the company's digital assets held to hedge debt increased significantly, thus offsetting all losses.
As of September 30, 2020, the total assets of coinshares were GBP 808 million and the net assets net of liabilities was GBP 59.64 million.
At present, coinshares mainly has two business sectors: passive products and capital market.It is understood that coinshares passive products provide ETP to track the price of specific digital assets, provide customers with exposure to digital assets such as BTC, ETH, LTC and XRP, and may launch ETP products related to BCH, etc and Neo in the future.Coinshares will charge an annual management fee of 2.5% for all ETP products, which is also the company's main source of revenue.
Coinshares capital markets business focuses on trading activities, providing trading liquidity for the above-mentioned ETP products, hedging transactions and hedging.In 2020, the total transaction volume of the business reached US $7.577 billion, an increase of 232.3% compared with that in 2019.
In addition, coinshares also provides active strategy, index strategy and consulting services for customers.On February 22, coinshares and Imperial College London issued the DFI index token CGI based on a basket of assets such as wbtc, weth and wgold in Ethereum, and mainly sold to institutional investors.
The prospectus also revealed that coinshares made a number of investments at the end of last year.On December 31, last year, coinshares signed an agreement with 3iq Corp, a Canadian encryption asset management company, to acquire 9% of the company's equity for us $2.25 million. on December 21, last year, coinshares signed an agreement with the parent company of King trust, a US qualified trust, to acquire 8% of the company's equity for us $1.96 million.
According to the prospectus, 30% of the public offering will be used to strengthen the company's balance sheet, thereby enhancing the ability of coinshares' internal transaction team in capital markets. 20% will be used to develop and distribute new products to expand the product range. and 20% will be used to acquire potential businesses.
At present, the company's board of directors and executive management members, existing shareholders and external investors have made a subscription commitment of about SEK 125 million, accounting for about 83% of the total amount of this offering.
The listing plan of coinshares has also attracted the attention of the encryption industry."Given the pricing expectations of coinbase, if not conservatively calculated at 50 times EBITDA, the company could be valued at $3-5 billion."Said Ryan selkis, founder of messari, a leading research firm.
It is worth noting that coinshares is not the first crypto asset management company to go public. Galaxy digital has been listed in Toronto, Canada, with a total market value of $1474 million.