Based on local news outlet LaPresse on Wednesday, the Caisse de dépôt et placement du Québec (CDPQ), an institutional investor chartered with managing retirement assets in Canada’s predominantly French-speaking province of Quebec, authored off almost the whole of their CA$200 million ($154.seven million) purchase of troubled cryptocurrency loan provider Celsius Network.
The move came just ten several weeks following the CDPQ and growth equity firm WestCap designed a joint investment of $400 million into Celsius in a valuation of $3 billion. In those days, Celsius boasted over 1,000 employees, $25 billion as a whole assets and $850 million in cumulative interest compensated to depositors.
However, being an unregulated and centralized entity, a depositors’ assets aren’t protected in case of losses, neither is the firm exposed to the limitations on using leverage. Throughout the start of the 2010 crypto winter, the sudden and violent crash of Bitcoin (BTC) along with other digital assets created a $2.85 billion gap in Celsius’ internet assets. Consequently, it suspended withdrawals around the accounts of nearly 1.seven million customers in June.
Related: Concerned about inflation’s effect on your retirement funds? Purchase cryptocurrency
It seems the loss on Celsius represents merely a minimal fraction from the CDPQ’s portfolio. By June 30, the CDPQ managed a combined CA$391.6 billion as a whole assets (or about $303.4 billion), decreasing by 7.9% previously six several weeks. The entity is presently evaluating its legal options against Celsius, even though it hasn’t shared any details. According to the court filings, Celsius is scheduled to exhaust money by October.
