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CSHR
Earnings call · Jun 2026 (H1 FY26)

CoinShares H1 FY26 earnings call CSHR

Sep 14, 2026 Source

Executive summary

CoinShares H1 FY26 — Resilience Amidst Digital Asset Market Contraction

CoinShares demonstrated significant resilience in H1 FY26, navigating a severe digital asset market contraction that saw Bitcoin and Ethereum prices fall sharply. Despite a 25% decline in AUM driven by market movements, the company achieved positive net inflows and maintained profitability across its core Asset Management and Capital Markets segments. The period also marked its U.S. NASDAQ listing and a strategic focus on diversification, with a strong balance sheet positioning it for recovery and potential share repurchases.

Highlights

5

  • Generated $28 million of positive net inflows despite a significant market downturn, outperforming peers who saw over $7 billion in net outflows.

  • Asset Management segment generated $40 million in management fees, demonstrating resilience despite lower average AUM.

  • Capital Markets segment remained profitable, generating $14.9 million in revenue and gains, while deliberately reducing risk.

  • Exited the period with a strong balance sheet, including $413.9 million of available capital and no long-term debt after repaying $20.3 million.

  • AUM recovered to $6.9 billion by end of August, up 25% from June 30, with continued positive net flows of $74 million post-period.

Concerns

5

  • Digital asset markets experienced a sharp contraction, with Bitcoin down 32% and Ethereum down 48% in H1 2026.

  • AUM declined by 25% to $5.5 billion by June 30, primarily due to market movements ($1.9 billion reduction).

  • GAAP total revenue decreased to $51.4 million from $80 million in H1 2025, and segment EBITDA fell to $21.6 million from $59 million.

  • Reported GAAP operating loss of $5.1 million, impacted by a $34.7 million unfavorable swing in the XBT Pricing Differential and $6.1 million share-based compensation.

  • Blended fee yield declined from 156 bps in 2025 to 128 bps in H1 2026, primarily due to product mix shift towards lower-fee products.

Guidance & targets

CategoryTargetConfidence
Share Repurchase Program
Up to 25% of shares outstanding (32.9 million shares)
high materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Asset Management
Revenue declined principally reflecting lower average AUM. Product mix shifted from legacy XBT products towards the Physical platform and Block Index, contributing to diversification.
Net inflows: $28 millionPhysical platform net inflows: $156 millionHigh fee-generating products AUM: $2.1 billionAccess products AUM: $3.5 billionHigh fee-generating products AUM reduction from market movements: 42%Access products net flows: 2% positiveAccess products market impact: 10% limitedBlock Index AUM: $1.56 billion (up from $1.3 billion)Block Index AUM growth: 17%Block Index net outflows: $24 millionBlended fee yield: 128 bps (down from 156 bps in 2025)High fee-generating products yield: 255-284 bpsAccess products yield: 22-27 bpsBlended fee yield reduction from Block weighting: 25 bpsBlended fee yield reduction from Physical Bitcoin/US mix: 7 bpsProduct level fee rate changes impact: 4 bps
$40 milliondown 33%——
Capital Markets
Segment revenue and gains were adjusted to remove the impact of the movement on the XBT Pricing Differential. The company deliberately maintained a conservative approach to capital deployment, reducing lending activity as market conditions deteriorated, yet the segment remained profitable.
Staking revenue: $6.6 million (down from $9.8 million last year)Lending revenue: $2.4 million (down from $4.9 million last year)Other revenue and trading gains: $7.6 million (down from $11.7 million in H1 2025)
$14.9 milliondown from $26.5 million in prior year period——

Product announcements

ProductTypeDetails
[indiscernible] platformlaunch

Deals & partnerships

[indiscernible] Partnership to leverage tokenization for new product creation

Allows CoinShares to effectively start creating comfortability and new products on top of the tokenization trend, avoiding being locked in one ecosystem.

Invesco Distribution and product wrapping for CoinShares' Blockchain Global Equity Index (Block)

Invesco handles distribution, product wrapping, and maintenance, while CoinShares focuses on portfolio management. CoinShares receives approximately 32.5 basis points of management fee revenue.

Bastion Acquisition of asset management firm to offer actively managed strategies

Acquisition completed in September of this year (2026) after clearing regulatory hurdles. Integrates a team offering actively managed strategies, complementing CoinShares' ETF background, opening new distribution channels (non-listed products), and targeting new markets like Asia and potentially the U.S.

Risks & headwinds

Digital Asset Market Contraction H1 2026

Bitcoin down 32%, Ethereum down 48% in H1 2026. AUM declined by 25% ($1.9 billion) due to market movements.

Mitigation:Deliberately operated Capital Markets conservatively, reducing lending activity and prioritizing preservation and counterparty risk management. Business model built to navigate market cycles.

Product Mix Shift and Blended Fee Yield Pressure H1 2026

Blended fee yield declined from 156 bps in 2025 to 128 bps in H1 2026.

Mitigation:This is a portfolio mix effect (shift to lower-fee access/physical products), not broad-based fee compression. Diversification across products (e.g., Block Index) improves resilience.

Non-recurring Costs from U.S. Listing and GAAP Transition H1 2026

$4.9 million in H1 2026.

Mitigation:Considered important investments to establish CoinShares as a U.S.-listed public company; not expected to recur at the same level.

Unrealized Losses on Treasury Digital Asset Holdings H1 2026

$15.4 million in H1 2026.

Mitigation:Rebounded post-period end; by August 31, the majority of the treasury loss was reversed.

Complexity of M&A in Current Market Ongoing

Not quantified.

Mitigation:Being extremely focused on pulling the trigger on the 'right' opportunities, acknowledging that many target companies have 'a lot of [indiscernible]' and are not 'clean.'

What to watch next

Share Repurchase Program Approval

Tomorrow
Current Board proposal for up to 25% of shares outstanding (32.9 million shares)
Target Shareholder approval at AGM

Why it matters

Approval enables the company to execute buybacks, signaling confidence and potentially enhancing shareholder value given the Board's view on undervaluation.

We will ask shareholders to approve this at our upcoming AGM tomorrow.

Q&A highlights

How does CoinShares view the expansion of the digital asset ecosystem through tokenization, and what are the growth opportunities?

Capital markets is actively trading RWA, experimenting with hyper-liquid and different protocols. Asset management plans to leverage tokenization to create new products, exemplified by a partnership with [indiscernible] to build comfortability and new offerings, aiming to avoid being locked into one ecosystem.

“our capital market has been at the forefront of tokenization in the sense that we're trading more RWA in general in H1 than we traded Bitcoin or Ethereum, as an example.”

asked by Joe Wafi · answered by Jean-Marie Mognetti

2 min read 6 chapters

Detailed narrative

H1 2026 Market Environment and Resilience

The first half of 2026 was a stress test for CoinShares, with digital asset markets experiencing a sharp contraction. Bitcoin ended the period down approximately 32%, and Ethereum down approximately 48%. Despite this, CoinShares demonstrated resilience, generating positive net flows and maintaining profitability in its operating segments. The company emphasizes that the decline in AUM was market-driven, not due to client redemptions.

U.S. Listing and GAAP Transition

H1 2026 marked CoinShares' first results presentation since completing its U.S. NASDAQ listing and transitioning to U.S. GAAP. This process incurred approximately $4.9 million in one-off costs, which elevated reported expenses but are considered important investments for establishing the company as a U.S.-listed public entity.

Product Diversification and Fee Mix

CoinShares is actively diversifying its product offerings beyond passive listed products, including active strategies and new investment exposures. The shift in product mix, particularly towards the CoinShares Physical platform and the Block Index, has led to a decline in the blended fee yield from 156 basis points in 2025 to 128 basis points in H1 2026. This is primarily a portfolio mix effect, not broad-based fee compression, as individual product category yields remained consistent.

Capital Allocation Strategy

The Board is focused on capital allocation, proposing a multiyear share repurchase program of up to 25% of shares outstanding, subject to shareholder approval. This is driven by the belief that the current share price does not fully reflect the business's value and earnings potential, and repurchases can be an attractive use of capital given the strong balance sheet and $413.9 million of available capital.

Strategic M&A and Tokenization

CoinShares is actively exploring M&A opportunities, balancing them with potential share buybacks. The company is also at the forefront of tokenization, with its capital markets arm trading more real-world assets (RWA) than Bitcoin or Ethereum in H1. On the asset management side, CoinShares plans to leverage tokenization to create new products, exemplified by a partnership with [indiscernible] to build comfortability and new offerings.

Post-Period Recovery and Operating Leverage

Following the period end, digital asset markets recovered materially, with Bitcoin up 34% and Ethereum up 40% between June 30 and August 31. This led to CoinShares' AUM recovering to $6.9 billion by the end of August, a 25% increase in two months, with continued positive net flows of $74 million. The company highlighted the operating leverage in its model, where higher asset prices and a shift back towards higher-fee products can significantly improve revenue and profitability.

AI-generated summary of the company's earnings call. Not investment advice.