A Canada pension fund writes off a $150 million loss on a Celsius investment and believes it entered the crypto market too soon. They no longer expect any return from Celsius. This is even after the fact that Celsius will return investments to institutional investors and companies first before retailers. Since the 2nd largest pension fund in Canada, losing such a major crypto investor to a mismanaged company is bad.
Canada’s pension fund disappointed with crypto
All is sunshine and roses until you invest in a lending platform and a bear market is triggered. Thus, many loan companies have gone bankrupt in recent months, and the reaction of the pension fund manager is not surprising. They manage 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 it is a wise decision to cancel the investment as there is no expectation of recovery from him.
At the time of the investment, the pension fund was rather optimistic. They said it showed their belief in blockchain and its future. The CEO now realizes that they got into crypto too early and also invested in an extremely high risk business. And now that they have to record such an amount as a loss, pension fund managers are quite disappointed.
The end of the Celsius network
Recently, Celsius Network began paying down debt and collecting collateral from companies like Aave and Maker. It will release more than $200 million in collateral in exchange for the $58 million still owed. However, Celsius Network filed for bankruptcy protection due to unstable market conditions and its current precarious position.
The company said in a statement last month that it would use the $167 million in cash it has to try to stabilize operations. Celsius wants to restructure its business model to increase the value it delivers to all stakeholders.
What do you think when Canada’s 2nd largest pension fund writes off a $150 million loss in Celsius investment? And do you think Celsius 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.
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