CoinShares PLC

CoinShares PLC is an asset manager specializing in digital assets, operating an institutional-grade platform with integrated capital markets capabilities ¹. The company's business model combines recurring fee-based revenues from its Asset Management platform with complementary returns generated through its Capital Markets capabilities, which support product operations, execution, and balance sheet management ². This dual-engine model is designed to deliver performance across market cycles and generate a blended yield on a growing asset base over time ³. The company operates within a multi-jurisdictional regulatory framework and applies a security-first operating model to manage risk and ensure product integrity ⁴.

The core business model of CoinShares involves generating revenue primarily from management fees, which accrue daily based on assets under management (AUM), and Capital Markets revenues, generated through non-directional trading and hedging strategies, staking, lending, and liquidity provisioning ⁵. The Asset Management platform focuses on the design, issuance, and management of investment products providing exposure to digital assets, distributed through regulated exchanges and financial intermediaries ⁶. The Capital Markets platform supports product development, execution, and balance sheet utilization, contributing a complementary yield on the company's asset base ⁷.

The Asset Management segment includes several platforms. CoinShares XBT Provider is a retail-focused platform listed on Nasdaq OMX, primarily distributing in the Nordic region ⁸. CoinShares Physical is an institutional-grade platform, also accessible to retail investors, listed across major European exchanges including SIX (Zurich), Xetra (Germany), Euronext (Paris and Amsterdam), Borsa Italiana (Milan), and the London Stock Exchange, offering single-asset (staked and unstaked) and basket products ⁹. BLOCK Index provides indirect exposure to digital assets through listed equities, with CoinShares responsible for index construction and risk allocation ¹⁰. CoinShares Valkyrie Funds comprises a suite of U.S.-listed ETFs, representing the Group's expansion into the U.S. market ¹¹.

For the year ended December 31, 2025, total revenue was $165.677 million ¹², an increase of 6.5% from $155.540 million in 2024 ¹³. Operating income increased by 1.6% to $126.991 million in 2025 from $125.011 million in 2024 ¹⁴. Net income, however, decreased by 29.7% to $114.272 million in 2025 from $162.448 million in 2024 ¹⁵. The company's available capital position increased by 16.4% to $481.355 million in 2025 from $413.422 million in 2024 ¹⁶. AUM decreased by 7.9% to $7.40 billion as of December 31, 2025, from $8.04 billion as of December 31, 2024 ¹⁷.

Year-over-year comparisons show that management fees increased by 13.1% to $126.371 million in 2025, driven by higher average AUM, positive market price action, and net inflows into CoinShares Physical products ¹⁸. Staking revenue decreased by 25.6% to $21.901 million in 2025, reflecting lower effective staking yields ¹⁹. Lending book interest increased by 13.7% to $10.684 million in 2025, due to broadly stable lending activity and yields ²⁰. The decrease in net income was primarily due to the absence of a one-off gain of $36.8 million recognized in 2024 from the sale of the FTX claim ²¹.

Significant operational developments during 2025 included CoinShares Physical recording net inflows of $1,098.6 million, partially offset by net outflows of $982.1 million from the CoinShares XBT Provider platform ²². The Group launched additional exchange-traded products, including staking-focused offerings in Europe and new products in the United States ²³. Distribution expanded with five CoinShares Physical ETPs made available through BoursoBank in France ²⁴. The Group obtained a license under the MiCA Regulation framework through its French subsidiary ²⁵. A definitive business combination agreement with Vine Hill Capital Investment Corp. was announced on September 8, 2025, to become publicly listed on the Nasdaq Stock Market in the United States, which was completed in late March 2026, with trading commencing on April 1, 2026, under the ticker symbol "CSHR" ²⁶. Concurrently, a private investment in public equity for aggregate gross proceeds of $49.0 million was completed ²⁷.

The company's financial performance will continue to rely on active engagement with regulators and policymakers, and its ability to adapt its product offering and operations in response to regulatory developments ²⁸. Sustained positive investor sentiment may support AUM growth and revenue expansion, while periods of negative sentiment may result in reduced inflows, lower asset values, and increased volatility in financial performance ²⁹.

The Group plans to enter into additional markets or increase its presence in existing markets globally, with a particular focus on significantly increasing its market presence and customer base in North America, especially within the United States ³⁰. The strategy in the United States is not to compete directly on scale in commoditized exposures, but to leverage existing market infrastructure and investor awareness to introduce differentiated, higher value-added investment solutions, focusing on areas where specialized expertise, product structuring capabilities, and active management can support premium unit economics ³¹. This disciplined approach to market entry reflects the company's focus on capital efficiency and long-term value creation for shareholders ³².

The company's ability to maintain and expand its product suite is closely linked to the development of regulatory regimes governing digital assets ³³. Future changes in requirements relating to custody, taxation and accounting treatment, disclosures, or distribution are likely to influence product design, cost structures, and investor demand ³⁴. The company also aims for the timely introduction of innovative, competitively priced products that align with investor demand, such as the launch of zero-fee, staked products within the CoinShares Physical product suite ³⁵.

The company manages liquidity risk by maintaining a portfolio of liquid assets, including cash and digital assets that can be readily realized ³⁶. Management monitors overall liquidity based on its available capital position, which includes proprietary trading positions and assets held in connection with the CoinShares XBT Provider platform ³⁷. This approach ensures the Group can meet its operational requirements and investor redemption obligations as they fall due ³⁸.

The company faces significant risks including the highly volatile nature and price of digital assets, which can cause operating results to fluctuate significantly ³⁹. Any reduction in Assets Under Management (AUM) due to market declines, net outflows, or redemptions would adversely affect investment management fees ⁴⁰. Stablecoins held by the company are subject to de-pegging risk, reserve adequacy concerns, issuer insolvency, and evolving regulatory treatment, with an issuer's failure to honor redemption obligations potentially undermining confidence in digital assets broadly ⁴¹. The company's trading and lending activities expose it to digital asset price fluctuations, counterparty risk, borrower default, and exchange outages ⁴². Furthermore, the company has identified material weaknesses in its internal control over financial reporting for the year ended December 31, 2025, related to deficiencies in controls over financial reporting for liabilities and digital assets, and effective IT general controls ⁴³. If these material weaknesses are not remediated, it could lead to errors in financial reporting, adversely affecting the business and stock price ⁴⁴.

Management emphasizes a focus on revenue generation, profitability, and capital efficiency, which has shaped the development of its business model ⁴⁵. The company aims to deliver performance across market cycles by combining recurring fee-based revenues from its Asset Management platform with complementary returns from its Capital Markets capabilities ⁴⁶. A key strategic priority is to establish a long-term presence in the United States and position CoinShares as a global asset management franchise with deep expertise in digital assets and innovation across both European and U.S. markets, as evidenced by the successful completion of the business combination and Nasdaq listing in April 2026 ⁴⁷. Management also highlights the importance of maintaining strong, mutually beneficial partnerships to support continued growth and financial performance ⁴⁸.