Fireside Chat with CoinShares CEO Jean Marie Mognetti on Navigating the Current Market



KEY POINTS
  • Water Tower Research hosted Jean-Marie Mognetti, Founder and CEO of CoinShares, on July 6, 2022. We looked at CoinShares’ strategy in these challenging times for crypto. The event is available on demand and is open to all investors.
  • Mognetti discussed how CoinShares’ ringfencing protects its clients and the company in volatile markets. The company is also slowing some of its new product releases on the consumer side given market conditions. He is also expecting an acceleration of regulatory moves around the globe as consumers are getting hurt. Mognetti sees this as a good thing, which will likely limit the regulatory overcorrection.
  • On the competitive front, CoinShares is staying ahead in its core European market. Global expansion will require more localization, so the company is focusing on operating well in its existing markets while crypto stabilizes. In 1H22, the company saw around $100 million worth of net inflows, making CoinShares #1 in Europe: #2 being 65% behind in terms of net inflow.
  • While we will learn the details of the 2Q22 on the August 2 earnings call, register here. In the recent prior quarters, CoinShares’ business model has shown that it can perform in bear as well as bull markets.
  • The company’s comparables include other crypto/digital management companies. The comps we identified have a median forward P/E of 5.7x, while CNSRF is trading at 1.7x, a 71% discount. CNSRF is trading near its 52-week low, in line with most of its comps.
  • Read our initiation and other reports on CoinShares on our website.

THE COMPANY

CoinShares International Ltd. is a digital asset investment firm that is adding consumer offerings to its existing asset management and business solutions. The company focuses on expanding investor access to the digital asset ecosystem with new financial products and services that seek to provide trust and transparency when accessing the new asset class.

The company's products and services include exchange traded products, indexes and capital markets, and others. The company generates most of its revenue from its Exchange Traded Products operating segment. CoinShares is publicly listed in SEK on the Nasdaq First North Growth Market (Sweden) under the ticker CS and in USD on the OTCQX under the ticker CNSRF.

As CoinShares is positioned to grow with digital asset adoption, the growth of crypto in general is central to its prospects. According to coinmarketcap.com, there are more than 17,000 cryptocurrencies trading on 462 exchanges with a total market cap of $1.67 trillion.

For more information, visit www.coinshares.com.

Water Tower Research hosted Jean-Marie Mognetti, Founder and CEO of CoinShares, on July 6, 2022. We looked at CoinShares’ strategy in these challenging times for crypto. The event is available on demand and is open to all investors.

EXECUTIVE DISCUSSION

John Roy: Good morning and welcome to Water Tower’s continuing series of CEO fireside chats. I’m John Roy, Managing Director here at Water Tower. I’m very pleased to have Jean-Marie Mognetti here. He’s the CEO of CoinShares. CoinShares is based in the UK, making progress on its efforts to get more consumers into its business. But it’s also certainly a leading crypto company. And it’d be great to hear from him as where things are headed and what things are happening.

So Jean-Marie, thank you so much for being here. It’s definitely going to be an interesting call. Maybe just to start off, I know you guys are looking at the new product plans for consumers. Maybe you can give us a little bit of background of what’s going on there?

Jean-Marie Mognetti: Sure. I think first of all, thanks for having me. When it comes to our consumer segment, we have three streams that were put in production and we’re prepared to go to market in 1H. I thi...

ABOUT THE EXECUTIVE
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Jean-Marie Mognetti

CEO/Board Member

CoinShares International Ltd.

Jean-Marie has been a board member since 2014 and holds a Master’s degree in Mathematical Trading and Finance from Sir John Cass Business School.

Jean-Marie is an experienced commodities trader with a background and expertise in quantitative analysis, risk management and alpha-generation through macro commodity-oriented programs, including cryptocurrencies.

In addition to his role as CEO, Jean-Marie oversees the Company’s proprietary trading arm, capital markets portfolio and risk management practices, ensuring that the Group possesses the requisite infrastructure for strategy execution and regulatory compliance. Prior to joining CoinShares, Jean-Marie was a quantitative strategist with Hermès Commodities Fund Managers.

He is one of the company’s co-founders and major shareholders.

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