CoinShares, which claims to be Europe's largest digital asset company, recorded an "exceptional" loss of 17 million pounds ($21.4 million) from its exposure to Terra's UST tokens, the company said in its annual report released Monday.
- "We recorded an exceptional loss from our DeFi activities of 17 million pounds for the liquidation of our UST stake," Jean-Marie Mognetti, the company's CEO, said in the report, adding that it was a "humbling lesson."
- For the full year 2021, CoinShares' net loss widened to £2.4 billion from £1.4 billion, even as revenue grew more than fourfold to £80.8 million, according to figures prepared under International Financial Reporting Standards (IFRS).
- The net result was mainly due to a loss on financial instruments. The Saint Helier, Jersey-based company pointed out that under IFRS, gains on digital assets are not recognized in the income statement.
- Most of the revenue came from management fees for its exchange-traded products issued by subsidiaries XBT Provider and CoinShares Digital Securities. Rising crypto prices drove the increase in revenue, the report said.
- While retail investment has remained strong, larger investors have divested from XBT Provider products, with outflows reaching $341 million, CoinShares said.