A pension fund from Canada writes off a $150M loss in Celsius investment and believes that they entered the crypto market too soon. They do not expect any returns from Celsius anymore. This is even after the fact that Celsius will be returning investments to institutional investors and enterprises as a priority before retailers. Since, the 2nd largest pension fund in Canada, losing such a major crypto investor because of a poorly managed company is bad.
Canada’s pension fund is disappointed in crypto
It’s all sunshine and roses till you invest in a lending platform and a bear market kicks in. So, many lending companies have gone under in the past few months, and the reaction of the pension fund manager isn’t surprising. They are managing over $300 billion in funds, so $150 million is not a very big number. However, a loss is a loss, and that is the case here. The fund manager is very disappointed and says that it is a wise decision to write the investment off as there are zero expectations of recovery from his end.
At the time of investment, the pension fund was quite optimistic. They said that it shows their belief in blockchain and its future. The Chief executive now realizes that they went in too soon in crypto and also invested in a company that was extremely high risk. And now that they have to write such a big amount as a loss, the pension fund managers are quite disappointed.
The end of Celsius Network
Recently, Celsius Network has begun to repay its debt and reclaim collateral from businesses like Aave and Maker. It will release more than $200 million in collateral in exchange for the $58 million that is still owed. However, Celsius Network has applied for bankruptcy protection due to the unstable market conditions and its current precarious position.
The company said in a statement last month that it will use the $167 million in cash it has to try to stabilize its operations. Celsius wants to restructure its business model in order to increase the value it offers to all stakeholders.
What are your thoughts as Canada’s 2nd largest pension fund writes off a $150M loss in Celsius investment? And do you think Celsius has left a significant dent in the crypto industry? Let us know in the comments below. And, if you found our content informative, share it with your friends.
Also Read: UK’s digital bank Revolut gets crypto license in Cyprus.
