A company that holds up – Even with gobbled up for $3 billion worth of bitcoins (BTC), the stablecoin UST of the project Terra could not be saved from disaster. Following this disaster and domino effect, many other crypto projects have been impacted. Some to the point of putting themselves in bankruptcy. Without reaching this last extremity, the CEO of CoinShares has just explained how much his company has suffered from this case.
Tens of Millions of Dollars Lost to Terra
the bear market (bear market) on Bitcoin and cryptocurrencies is doing a lot of harm to companies in the ecosystem. It particularly affects the most fragile and/or the least well managed. Whether CoinShares International is not one of them, and has a solid seniority in the crypto sector (since 2014), the investment company has nevertheless been impacted by the descent into hell of theUST of Terra.
Indeed, CoinShares has just published, via a press release, its second quarterly report of the year 2022. He is the CEO of the company, Jean-Marie Mognetti, who announces the bad news in person. The loss of the UST’s peg to the US dollar cost £17.7 million (£) to CoinShares. This represents the equivalent of $21.7 million.
“(…) despite the current turmoil in the area of digital assets (…) our asset management business has continued to generate strong earnings. (…) However, we suffered a one-time loss of £17.7 million following the loss of TerraUSD indexation. This episode, although relatively small compared to the losses suffered by other players in our sector, has of course had a significant impact on our quarterly result. »
Jean-Marie Mognetti, CEO of CoinShares
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CoinShares compensates (partially) losses due to UST
Fortunately, as the leader of CoinShares suggests, the other activities of the crypto-company have made it possible to limit breakage. The balance sheet for the second quarter is thus negative by £8.2 million overall (about $10 million).
The CEO thus explains that his company has gone through a “more defensive mode” for times to come. Jean-Marie Mognetti thus considers that they have “sufficient resources” to survive this new crypto winter.
Even to the point that CoinShares is still planning to do enter actions in the main market NASDAQ of Stockholm (Sweden). Nothing to be alarmed about despite the painful event on Terra (which has since become Terra Classic/LUNC)
Another sign that CoinShares is not doing so badly: its recent acquisition of Napoleon Asset Management. In early July 2022, CoinShares indeed received the green light from the AMF to proceed with the acquisition of this French crypto-company.
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