Canada’s second-largest pension fund writes off CAD 200 million ($150 million) investment in Celsius

Canada’s second-largest pension fund Caisse de dépôt et Placement du Québec (CDPQ) booked a write-off of its investment in the crypto-lending platform Celsius Network for CAD 200 million (~$150 million). The Block.

The move reflects the conservatism principle in accounting, the company explained.

CDPQ’s chief executive Charles Emond acknowledged that he rushed into an industry that is still in its formative stages. He added that Celsius underwent a comprehensive due diligence with the involvement of many experts and consultants.

Over the past six months, CDPQ, with CAD 392 billion in assets ($303 billion), has posted an average loss of 7.9% to clients.

As reported, the pension fund поддержал Celsius Network in a $400 million round in October 2021.

On July 13, the platform filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in New York. The company said its liabilities exceed assets on the balance sheet by almost $1.2 billion.

According to the latest assessment, the ‘hole’ in Celsius Network’s balance sheet amounted to $2.85 billion. From August to October the platform will lose $137 million due to investments in the mining business and restructuring costs, fully exhausting cash reserves.

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