Quebec-Based Pension Manager Writes Off $150 Million Celsius Network Investment

Quebec pension manager Caisse de depot et placement du Québec (CDPQ) has written off its investment in now-bankrupt cryptocurrency lending company Celsius network, conceding that it was too soon to venture into the sector.

CDPQ CEO Charles Emond finally broke silence on his fund’s $150 million investment in the Celsius Network, which filed for Chapter 11 bankruptcy in July after suffering a sudden liquidity crisis amid a crash in crypto prices. “The due diligence was quite extensive with many experts and consultants involved. The team came in cautiously,” he said, as cited by Bloomberg. “We had a 4% equity stake. The conversations we had internally were pretty straightforward. The teams are accountable for that.”

The pension manager reported a 7.9% loss in the first half of 2022, while its benchmark portfolio fell 10.5%. Net assets were down by $28.2 billion to $391.6 billion. “Due diligence is not a guarantee of success,” said Emond, adding that he empathizes with fellow investors who also had their funds frozen during Celsius Network’s bankruptcy process. He attested the cryptocurrency community as a sector undergoing a “transition,” but insisted that CDPQ staff made the right decisions in the absence of unforeseen information.

Information for this briefing was found via Bloomberg. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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