Canadian Pension Fund CDPQ writes off $200 million CAD investment in Celsius Network

  • Canadian investment management firm CDPQ has written off its $200 million investment in the Celsius network
  • The company previously invested its stake in Celsius in October 2022

Caisse de Dépôt et Placement du Québec, popularly known as CDPQ, has written off $200 million in Canadian dollar investments in struggling crypto lending platform Celsius Network.

CDPQ relinquishes its $200 million stake in Celsius, says its entry into the sector was ‘too soon’

According to a report published by La Presse, CDPQ, a major Canadian investment management firm has exited its $200 million stake in struggling crypto platform Celsius Network LLC.

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While attending a presentation of the company’s half-year results, the company’s President and CEO, Charles Emond, shared his views adding that CDPQ’s decision to foray into the volatile sector of crypto was “too soon,” which eventually led them to face this type of sudden financial upheaval.

“For us, it’s clear, when you look at all this, we arrived too soon in an industry that was in transition,” as Emond said during the presentation on Wednesday.

According to a report by Bloomberg, the CDPQ suffered a loss of 7.9% in the first six months of the year, followed by a notable decrease in its net assets. The company’s fixed portfolio had also fallen 13.1%, coupled with significant declines in its equity and private equity portfolio.

The CDPQ previously released a statement detailing how the company invested a small portfolio of its funds in new and riskier technologies; However, he later added that the investment bet on Celsius was “not performing well” compared to his other investments.

“A very small portion of our overall portfolio is invested in new technologies, which showcase innovative, high-growth businesses in riskier sectors that offer the potential for higher returns – and have delivered exceptional returns to our clients over several years. … However, some of our investments, such as that of Celsius, are not performing as expected.Caise’s statement was further noted.

Celsius Network had prompted a series of scrutiny when the company announced its decision to halt withdrawals citing “extreme market conditions”. The company filed for Chapter 11 bankruptcy on July 14, after which it began restructuring its finances.

However, the company suffered several upheavals in its wake, including several lawsuits highlighting the company’s inability to clear its debts.

Image: CDPQ/Twitter

Dolores W. Simon