TLDR
- CoinShares, a European digital asset manager with over $6B under management, is now trading on Nasdaq under the ticker CSHR after a $1.2B SPAC merger.
- The deal formed a new holding entity, CoinShares PLC, and includes a $50 million capital commitment from institutional investors.
- CoinShares manages 39 funds across four platforms and holds a 34% market share in Europe’s crypto ETP market.
- The crypto market has lost more than half its value since the SPAC deal was first announced in September, with CoinShares’ own Bitcoin Mining ETF (WGMI) down over 22% in six months.
- Analysts at Bernstein believe crypto-related stocks may be nearing a bottom heading into Q1 earnings.
CoinShares has arrived on Wall Street, but the welcome mat looks a little rougher than it did when the deal was first announced.
CoinShares International Limited, CS.ST
The European crypto asset manager completed its merger with Vine Hill Capital Investment Corp. on Wednesday, forming a new entity called CoinShares PLC. The combined company began trading on the Nasdaq under the ticker symbol CSHR, marking the firm’s entry into U.S. public markets.
The deal values CoinShares at approximately $1.2 billion. It also comes with a $50 million capital commitment from institutional investors — a vote of confidence despite a difficult broader market for crypto.
CoinShares was already a public company in Europe before this listing. The Nasdaq debut is primarily about raising its profile, attracting U.S. institutional capital, and gaining wider analyst coverage.
The company manages more than $6 billion in assets across 39 funds on four separate platforms. It generates most of its revenue through recurring management fees, a model the company says supports stable profitability and free cash flow.
CoinShares holds a 34% market share in Europe’s crypto exchange-traded product market — a lead the company says it is now looking to build on in the United States through product development and acquisitions.
CEO Jean-Marie Mognetti said the company is actively expanding its mix of offerings. “We are diversifying both our product and revenue mix, including new capabilities in listed asset management, active alternative strategies, and decentralized finance,” he said.
A Tougher Backdrop Than When the Deal Was Announced
The timing, however, is complicated. When the SPAC merger was first announced in September, the crypto market looked very different.
Since then, the broader crypto market has shed more than half its value. The pullback was accelerated by a major deleveraging event on October 10 that rattled the entire sector.
CoinShares’ own Bitcoin Mining ETF, WGMI, has fallen more than 22% over the past six months, according to Yahoo Finance data.
Crypto-linked stocks broadly have taken a hit. Coinbase, Gemini, and Figure Technologies are all down sharply this year. Circle has been an exception, benefiting from continued growth in the stablecoin market.
What Analysts Are Saying
Bernstein analysts recently argued that the worst may be over. In a note, they said crypto-related stocks could be approaching a bottom as the market heads into first-quarter earnings — though those results are expected to reflect weak performance.
CoinShares joins a growing list of crypto firms that have gone public in recent years, including BitGo (BTGO), Circle (CRCL), Bullish (BLSH), and Gemini (GEMI). BitGo listed earlier this year.
The company’s proximity to U.S. regulators is seen as a potential advantage as the compliance landscape for digital assets continues to evolve.
CoinShares’ WGMI ETF is down more than 22% over the past six months.
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