Canadian Pension Giant Caisse Writes Off $150M Bet on Bankrupt Crypto Lender Celsius
Quebec-based Caisse said Wednesday it had acted "too soon" in entering the sector.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/ODF7CTDGOVA7HDQ7JRL7ZKAH3A.jpg)
Thermometer (Getty Images)
The Caisse de Depot et Placement du Quebec pension fund has elected to write off its stake in bankrupt crypto lender Celsius Network, Caisse confirmed Wednesday.
The Canadian fund invested US$150 million in Celsius in the fall of 2021. “Blockchain technology has the potential to disrupt several sectors of the traditional economy. As digital assets grow in adoption, we intend to capture the right opportunities, while working with our partners towards a regulated industry,” Alexandre Synnett, executive vice-president and chief technology officer at Caisse said at the time.
On Wednesday during a webcast discussing the firm’s mid-year results, Caisse CEO Charles Emond said the fund “arrived too soon in a sector which was in transition.”
Emond added that Caisse conducted “extensive” due diligence, before its investment, and is now exploring “legal options.” Celsius is participating in an ongoing bankruptcy case with its creditors.
Caisse, the Canadian pension giant, has net assets of just over $300 billion as of June 30, according to its latest results.
Celsius disclosed earlier this week it was running low on money, and said it has gotten several proposals to inject cash into the company and won approval from a U.S. judge to sell bitcoin (BTC) that it mines.
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.