TL;DR
- Recovery Rate: CoinShares achieved a remarkable recovery rate of 116% net of broker fees by successfully selling its claim against the now-defunct cryptocurrency exchange FTX. This translates to £31.32 million recovered from a £26.6 million claim.
- Shareholder Benefits: The sale significantly enhances CoinShares’ financial position, allowing for increased returns to shareholders. The company plans to reinvest the proceeds in growth opportunities within the digital asset sector.
- Resilience and Innovation: Even before the FTX collapse, CoinShares demonstrated resilience. The successful sale underscores their ability to adapt and thrive in a dynamic crypto landscape, promising continued innovation and growth.
CoinShares International, a prominent European digital assets investment company, has achieved a significant milestone by successfully selling its claim against the now-defunct cryptocurrency exchange FTX. The deal, which promises a remarkable recovery rate of 116% net of broker fees, translates to £31.32 million recovered from a £26.6 million claim.
Background and Recovery Efforts
CoinShares found itself among several companies heavily exposed to FTX during the liquidity crisis of 2022, which ultimately led to the exchange’s collapse in November of that year. Since then, the firm has diligently worked to recover funds and settle with its investors.
After rigorous negotiations, CoinShares finalized the sale of its FTX claim. While the buyer’s identity remains undisclosed, the transaction is subject to customary closing conditions. The recovered funds will not only strengthen CoinShares’ financial position but also allow the company to enhance returns for its shareholders and explore new growth opportunities.
Future Prospects and Innovation
CoinShares remains committed to innovation and service excellence within the crypto economy. The company plans to leverage the proceeds from the FTX claim sale to expand its business offerings, providing continued value to its clients.
Jean-Marie Mognetti, CEO of CoinShares, expressed his satisfaction with the outcome:
“The resolution of the FTX situation has been highly favorable for CoinShares. This exceptional recovery rate is a testament to the diligence and expertise of our team. We remain dedicated to leveraging this success to reward our shareholders and to drive further growth and innovation within the digital asset industry.”
Resilience Amid Challenges
Even before the FTX collapse, CoinShares demonstrated resilience. In August 2022, the company weathered a temporary deficit of $21.7 million due to exposure to the Terra (LUNA) blockchain.
The collapse of TerraUST, the algorithmic stablecoin pegged to the US dollar, sent shockwaves through the crypto market. However, CoinShares assured shareholders that its undisclosed “effective strategy” would sustain operations.
The successful sale of the FTX claim underscores CoinShares’ ability to adapt, recover, and thrive in a dynamic crypto landscape. Shareholders can now anticipate increased returns as the company continues to innovate and grow.
