Canadian Pension Fund Writes Off $150M Celsius Loss, Believes They Entered Crypto “Too Soon”
August 17 2022 - 8:53PM
NEWSBTC
A major Canadian pension fund manager has written off a $150M
investment in crypto lending platform Celsius Network as a total
loss, expecting an impending shutter of the once high-flying CeFi
platform. According to a report from the Financial Times, the fund
is the second-largest in Canada and has signaled the write-off as
being indicative of the funds’ expeditious decision to have
exposure to crypto assets. Canadian Fund’s “Disappointment” Caisse
de dépôt et placement du Québec, or CDPQ, is Canada’s
second-largest pension fund in the country, according to the Times,
managing over $300B in funds in Quebec. The fund’s stake in Celsius
was written off “out of prudence,” according to the report,
signaling that the fund has no expectation of Celsius Network
achieving any semblance of a recovery. The move comes less than a
year after the fund described it’s investment into Celsius as being
indicative of it’s “conviction” in blockchain technology, and
serves as another unfortunate domino in the Celsius downfall. Chief
executive of the fund, Charles Emond, said that the fund “went in
too soon into a sector that was in transition, with a business that
had to manage extremely quick growth.” While the fund outperformed
benchmarks, it still recorded a loss of nearly 8% in the six months
ending in June. Emond added that “the first six months of the year
were very challenging… Whether it is Celsius or any other
investment, needless to say that when we write it off, we are
disappointed with the outcome and not happy.” Celsius token (CEL)
has seen a major slide that is commensurate with the general
consensus of the platform's future, despite a recent pump. |
Source: CEL-USD on TradingView.com Related Reading: The Upcoming
Merge Will Not Reduce Gas Fees, Clarifies Ethereum Foundation State
Of Celsius Much like the loud and headline-grabbing downfall of
Terra Luna, Celsius is certain to leave newer crypto investors with
a bad taste in their mouth. When it comes to the CDPQ, the Times
has reported that Celsius’ crumbling is enough to leave the
Canadian pension behemoth on the sidelines when it comes to
short-term crypto investors, while remaining optimistic on the
long-term perspective around blockchain technology. Meanwhile, it’s
gone from good to bad to ugly (and worse) for Celsius as the
threads unravel. In recent days, it has come to light that Celsius
founder Alex Mashinsky took over the firm’s trading strategy
earlier in the year. The news comes as Celsius works through it’s
bankruptcy case with a New York judge, who recently granted the
firm an approval to sell off mined Bitcoin to assist in paying for
operations. Related Reading: Bitcoin May Hit $10K As Price Slides
Pre-FOMC Meeting Featured image from Pixabay, Charts from
TradingView.com The writer of this content is not associated or
affiliated with any of the parties mentioned in this article. This
is not financial advice.
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