Gain Capital sees client assets rise in Q3 2017, plans Bitcoin trading launch

Maria Nikolova

Gain Capital has just posted a solid set of metrics for Q3 2017, with some exciting novelties in store for the fourth quarter of the year, including Bitcoin trading and mobile-only trade signals app.

Online trading major Gain Capital Holdings Inc (NYSE:GCAP) has just released key metrics for the third quarter of 2017, with client assets and revenues rising, and the company managing to cut net losses. The company also reiterated its push into strategic M&A and its plans to expand its product set and distribution channels to increase geographic reach and scale.

Let’s start with the most basic numbers. The company posted a net loss of $2.6 million for the third quarter of 2017, which means that it managed to reduce the loss of $4.7 million seen in the equivalent period in 2016. Net revenues in the quarter to September 30, 2017, were up 13% year on year to $81.3 million.

Client assets increased 16% year on year, with the rise reflecting in part the integration of FXCM accounts.

Gain Capital also highlighted the results of its Convertible Senior Notes Offering. On August 22, 2017, the company completed a $92 million offering of 5.00% Convertible Senior Notes due 2022. The net proceeds from the offering were used to retire nearly all of the outstanding Convertible Senior Notes due 2018, Gain explained in today’s announcement. In connection with the offering, GAIN agreed to repurchase approximately $14.5 million of its common stock from purchasers of notes in the offering in privately negotiated transactions concurrently with the closing of the offering.

Excluding the buyback in conjunction with the Convertible Senior Notes offering, GAIN repurchased 279,612 shares of stock at an average price of $6.61 in the third quarter of 2017. Including the buyback in conjunction with the Convertible Senior Notes offering, during the third quarter, GAIN repurchased 2,402,598 shares of stock at an average price of $6.80.

Some very interesting announcements were made by the company with regard to its future plans, as it aims to step up client retention and acquisition. The plans involve expansion into digital advisory. In particular, Gain aims to introduce an innovative mobile-only trade signals app in the fourth quarter.

Enhancements to trading experience are also in the pipeline, including the launch of Bitcoin trading in the fourth quarter of 2017.

The company also plans to bolster its affiliate marketing program.

More details will be available in the quarterly filing with the Securities and Exchange Commission.

Read this next

Digital Assets

Monex Group expands crypto business with 3iQ takeover

Monex Group has completed the acquisition of a majority stake in 3iQ Digital Holdings, Inc., a Canadian digital asset investment fund manager, as part of its strategy to expand its crypto business.

Education, Fintech, Inside View

How to Get Into Fintech: Best Tips to Succeed

The Fintech sector is experiencing significant growth, with fresh opportunities emerging rapidly.  Innovations such as machine learning and cryptocurrency are revolutionising finance, leading to a need for trained experts.

Digital Assets

FalconX launches Prime Connect on Deribit

“We are pleased to launch Prime Connect with Deribit and look forward to providing our full suite of prime services which allow institutions to confidently scale their digital assets portfolios while trading on exchanges.”

Retail FX

Lion launches multi-currency trading accounts powered by AI

The core advantages of multi-currency trading account services include enabling significant cost savings and higher efficiency for investors.

Inside View, Interviews

Interview: Stanislav Bunimovich on Finalto’s white label solution

To explore what makes Finalto’s white-label solutions stand out in such an incredibly competitive market, Finalto sat down with its Chief Operating Officer, Stanislav Bunimovich, for an interview. 

Digital Assets

Talos acquired Cloudwall for a better portfolio management system

Cloudwall’s additional expertise in portfolio risk systems further positions Talos at the forefront of portfolio management systems across spot, futures, perps, and options.

Digital Assets

Bybit’s Bitcoin market share explodes, up by 400%

“This milestone is a testament to our sharp trading products and the loyalty of our users. As the industry evolves, Bybit remains at the forefront, ready to set new standards in the crypto trading world.”

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

<