CoinShares CEO Claims UST Failure Cost Company $21 Million


DeFi exposure linked to Terra’s stablecoin UST saw CoinShares, Europe’s largest digital asset company with billions in assets under management, lose more than $21 million, the company’s CEO revealed on Tuesday. , Jean-Marie Mognetti.

The CoinShares chief’s comment on the loss was part of his investor relations message to the company’s clients published in the 2021 Annual financial report.

While the loss will be reflected in the company’s second-quarter earnings report, Mognetti said he would wait until then or the earnings call scheduled for August to provide an update.

CoinShares had no direct exposure to the UST

According to the CoinShares co-founder, while the company’s trading activities mean it hasn’t been directly exposed to the LUNA price crash, it is active in the DeFi space. So when the implosion happened, he had been exposed to UST through a book he was editing.

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Following the events of the past few weeks, we recorded an exceptional loss from our DeFi activities of £17 million on the liquidation of our stake in UST,” he explained.

This represents approximately $21.4 million lost, but the CEO of CoinShares is confident that this will not impact his business in the future.

While this obviously has an impact on the Group’s performance for the second quarter, this loss had no impact on our additional capital markets activities, nor on the hedging and collateralisation of any of the Group’s ETPs. .

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It’s a “battle scar”

Despite the loss, CoinShares views it (the collapse and loss of LUNA) as a humbling experience and a “battle scar” that the team learned from and will not forget.

The events also gives them the morale to focus on providing "ta leading investment technology for the digital asset industry.”

Mognetti also says the company had an “outstanding” 2021, with revenue for the financial year up more than 500% year-on-year to over £113m (£142.4m). millions of dollars). However, shareholders may not see the value due to the global macroeconomic environment and the lack of liquidity in the company’s shares.

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The collapse of Terra resulted in the creation of a forked chain LUNA 2.0. The old channel is called Luna Classic (LUC).


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