CoinShares lost more than $21 million from Terra’s collapse
The company’s chief executive Jean-Marie Mognetti called the event “a humbling lesson”
![CoinShares lost more than $21 million from Terra’s collapse](https://storage.getblock.net/source/1/VwpR87otC4njPdoTtgicf-Eoj2atCqid.webp)
01.06.2022 - 10:45
339
2 min
0
What’s new? CoinShares, a digital asset management company, has suffered losses as a result of the collapse of the Terra ecosystem and the TerraUSD (UST) algorithmic stablecoin. The total loss amounted to £17 million ($21,4 million at the exchange rate on 1 June). In a May 31 CoinShares report, chief executive Jean-Marie Mognetti called the event “a humbling lesson.”
The full version of the report
What other data has been released? According to Mognetti, the losses are related to the liquidation of the company’s assets in UST. He stressed that the losses will obviously affect CoinShares’ Q2 performance, but they did not affect the company’s individual capital market operations or the collateralization of its investment products.
In the report, Mognetti also reported CoinShares’ operating losses for 2021. They amounted to £2,4 million ($3,02 million). As for the Q1 2022 figures, the company recorded earnings before interest, taxes, depreciation and amortization (EBITDA) of £18,7 million ($23,55 million), down 45% from the same period in 2021.
What is known about CoinShares? The company provides asset management services to institutional and retail investors. According to the company’s website, it was the first in the world to release a number of investment products in the field of digital assets, including a bitcoin fund launched in 2014 and BTC-backed securities, which became available on regulated exchanges in 2015.
What events happened before? In March, CoinShares announced the purchase of an additional 20,8% stake in the Swiss regulated bank FlowBank. The deal totaled 24,74 million francs ($26,38 million at the exchange rate on March 15, 2022). This brought CoinShares’ stake to 29,3%.
Useful material?
Market
Australia’s largest financial institutions have refused to process payments to digital asset trading platforms due to the risk of fraud
Jul 26, 2024
Politics
According to the politician, the value of the country’s bitcoin reserves should equal the value of gold reserves
Jul 26, 2024
Mining
The capacity of the Bitaxe device used by the network participant is only 500 Gh/s
Jul 25, 2024
Trends
Meanwhile, Trump-inspired assets have not shown significant growth
Jul 22, 2024
Market
The fee will be as much as 2,5% compared to 0,25-0,19% for competitors
Jul 18, 2024
Market
This is the third consecutive month of decline
Jul 18, 2024