Cryptocurrency company Coinshares doubles up in the strong debut

Cryptocurrency company Coinshares doubles up in the strong debut

Business Cryptocurrency Investments
March 12, 2021 by 99pigs
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CoinShares was listed on Thursday on the Nasdaq First North Growth Market. The shares were initially offered at 44.90 SEK, and with a closing price for the first day of 109.12 SEK holders at that price level have already doubled their money, and then some.
coinshares debut

On Thursday, Coinshares, a financial player in cryptocurrencies, debuted at First North. At 9.20 the share is traded around SEK 105 – an increase of around 130 percent compared to the subscription price of SEK 44.90.

Prior to the listing, a new share issue was made in which the company raised SEK 151 million. The issue was subscribed for 447 percent and added 2,280 new shareholders.

After the sharp rise, the company has a market capitalization of almost SEK 7 billion.

Background of the listing:

  • CoinShares was listed on Thursday on the Nasdaq First North Growth Market, an alternative stock exchange for small and medium-sized growth companies in Europe.
  • The offering consisted of 3,364,403 shares at 44.90 SEK ($5.29) apiece and totaling 151 million SEK ($17.8 million), according to the announcement.
  • Shares are trading under the ticker “CS”, despite an earlier release stating it would be “COIN” – one also proposed for Coinbase’s upcoming listing.
  • The Jersey-based investment firm said the offering was oversubscribed by over 400%, garnering subscriptions for 675 million SEK (nearly $80 million) from 2,280 new shareholders.
  • In February, CoinShares launched an Ethereum-back exchange-traded product (ETP) on the Swiss SIX exchange, which already boasts around $75 million in assets under management.

“Today’s listing of CoinShares on the Nasdaq First North Growth Market represents a major and exciting milestone for our company.

We have had a strong presence in Sweden and on Nasdaq Nordic since 2016 with our XBT Provider line of crypto ETPs, which now have over $4 billion in AUM, and we are delighted to expand our commitment to Nasdaq and Sweden with today’s announcement.”

Jean-Marie Mognetti, CEO of CoinShares

The company was founded in 2013 and currently has its headquarters in Jersey. The company also has offices in Stockholm, London, and New York. Coinshare’s assets under management amounted to $ 4.56 billion as of February 19, according to the prospectus.

During January-September 2020, the company had sales of £ 11.3 million, corresponding to SEK 133 million, with a profit after tax of £ 14.3 million, corresponding to SEK 169 million. Operating profit varies greatly between quarters, partly depending on realized profits.

Experienced leadership team at CoinShares

Daniel Masters is the largest owner of Coinshares. Prior to the listing, he held just over 23 percent of the share capital in the company. Daniel Masters is also chairman of Coinshares and has extensive experience in the British energy trading industry.

The board also includes Johan Lundberg, who is also a board member of Betsson and Loomis.

Coinshares focuses on creating infrastructure as well as financial products and services for digital assets such as bitcoin.

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