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In the aftermath of the Terra collapse, firms like CoinShares and Hashed are still reeling from significant losses.
CoinShares Records a £17.8 million Loss
On Tuesday, CoinShares Europe’s biggest digital asset investment firm released its financial results for the 2nd quarter of the year.
Following the Terra-Luna debacle, the firm’s investment in the stablecoin ecosystem experienced a one-off loss, scaling £17.8 million. CoinShares’ Capital Markets business bore the brunt of the crash, the report revealed. However, their Asset Management arm continues to perform well, making a solid profit to offset the loss.
Notably, the report highlighted a loss to their adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). Following, the collapse, this value fell short by over 8M euros. In summary, CoinShares reports a total comprehensive loss of £0.1 million for Q2.
Regardless of this, their YTD earnings still look well enough. CoinShares’ adjusted EBITDA comes to £10.5 million and total comprehensive income to £20.1 million. In the release, CEO Jean-Marie Mognetti pointed out the company’s resilience in the face of unstable conditions.
Mognetti did acknowledge the damages in the wave of the Terra crash. However, as he pointed out, CoinShares got off easier than other players in the digital assets industry.
Terra Crash Took $3.6B But Hashed Remains Positive
A prime example of players who got a worse hit in the Terra saga is Hashed. The blockchain-focused venture fund lost over $3.5B during the Terra collapse. In a recent interview with Bloomberg, CEO Simon Seojoon Kim revealed that they had acquired 30 million LUNA tokens when TFL first showed up. Their holdings were worth $3.6B when the stablecoin charted at record-highs just before the crash.
As Terra’s downfall unfolded, Hashed continued to hold on to its tokens, eventually losing everything. However, the company has no plans to jump out of the game anytime soon. Kim shared that he is still bullish on cryptocurrencies and will continue to invest in promising assets.
Planning New Investments
Hashed has stayed afloat so far and is already gearing up to take part in the industry once more. The company raised $200M in December and has already used up half. Once the remainder has been deployed Hashed will set out to gather more cash.
Kim has his sights set on the GameFi industry as the firm’s next big investment. The Hashed CEO believes the P2E gaming and metaverse sector will begin to see real-world integration shortly. He says this will occur as gaming models that allow users to swap assets between the virtual and real worlds emerge.
CoinShares to Rollout New Products in Due Course
Following the events of the past quarter, CoinShares plans to proceed with caution in the coming months. However, like Hashed the company does have several major moves in the works. The report revealed the firm has several product releases slated for the rest of the year.
For example, the company has just tied up an acquisition deal, gaining an AIFMD/MiFID license in the process. Additionally, CoinShares still intends to list its shares on the main Nasdaq market in Stockholm. “In due course,” the report said.
Ahead of these steps, CoinShares is also reportedly assessing its risk profile and will be looking to not repeat previous mistakes.
We have commenced taking steps to reduce both our cost base…and this conservative approach will enable us to preserve our capital.”