The purchase of Napoleon Asset Management will allow CoinShares to extend its services to the European Union market.
Digital asset investment company CoinShares has received approval from Autorité des Marchés Financiers (France's leading financial regulator) to acquire Napoleon Asset Management. The agreement will allow CoinShares to provide Alternative Investment Fund Managers (AIFM) and Exchange-traded Products (ETP) in the European Union market.
At the end of November last year, CoinShares agreed to acquire the French fintech firm Napoleon Crypto SAS and its subsidiaries. The latter stated that after the transaction closes, his employees will become part of the CoinShares family and will work according to its rules and market infrastructure.
Recently, the digital asset management company announced the acquisition of Napoleon Asset Management (it is an organization providing cryptocurrency solutions to professional investors). The agreement received "green light" from France's leading monetary supervisory authority, as it was signed and finalized at the end of June.
CoinShares provides a variety of digital asset services, including access to Exchange-Traded Products (ETP). With its recent initiative, the company expressed hope that it will be able to offer its experience and solutions to an increasing number of investors in the European Union.
Jean–Marie Mognetti, the firm's chief executive officer, argued that the cryptocurrency industry should be strengthened by comprehensive regulations. On that note, he assured that CoinShares had completed all regulatory procedures before signing the deal.
“The inclusion of the company in our group is another step in the right direction towards investor protection. We are proud to be one of the most regulated digital asset investment companies in the industry."
Our regulated status in an increasing number of jurisdictions is one of the main strengths of CoinShares; it reassures our customers and demonstrates our plans for the development of the European digital assets sector,” the executive director added.
For his part, Jean-Charles Dudek, CEO of Napoleon Asset Management, said that the agreement was long-awaited, but “it is absolutely necessary to wait for consideration and approval of the change of control of AMF.” “With this agreement, the two organizations will strengthen ties with each other“, he added.
The downturn in the digital asset market has affected many firms in this sector, and CoinShares was among them. The company's total revenue for the first three months of 2022 was about $35 million. For comparison, in the 1st quarter of 2021, this figure was almost $50 million.
In addition, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for this period fell by more than 45%, amounting to $22 million compared to $41 million a year ago.
As of March 31, 2022, CoinShares' assets under management (AUM) were about $5 billion, while a year later they were reduced to $4.4 billion.