CoinShares lost $21M after the collapse of Terra’s stablecoin algorithm. Jean-Marie Mognetti – CEO of CoinShares said the collapse was “a lesson never to be forgotten.”
The CEO said that CoinShares does not take directional positions and was not directly exposed to the LUNA price collapse. But the firm, which is active in the decentralized finance (DeFi) space, was running a book with exposure to UST, he added.
The loss on the disposal of shares held at UST amounted to £17 million – roughly $21.4 million.
“While this clearly impacted our Q2 performance, this loss did not have any impact on any of our additional capital markets, nor did it impact hedging and mortgages on any of our ETPs,” Mognetti wrote .
The CEO called Terra’s incident “a scar that I personally will never forget”, adding that the company has implemented additional controls to better predict and mitigate similar incidents in the future.
In summary, CoinShares reported a loss of over £2.4m in 2021, worse than the loss of around £1.4m the previous year. The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2022 were £18.7 million, down 45% from a year ago.
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CoinShares lost $21M from UST collapse
CoinShares lost $21M after the collapse of Terra’s stablecoin algorithm. Jean-Marie Mognetti – CEO of CoinShares said the collapse was “a lesson never to be forgotten.”
The CEO said that CoinShares does not take directional positions and was not directly exposed to the LUNA price collapse. But the firm, which is active in the decentralized finance (DeFi) space, was running a book with exposure to UST, he added.
The loss on the disposal of shares held at UST amounted to £17 million – roughly $21.4 million.
“While this clearly impacted our Q2 performance, this loss did not have any impact on any of our additional capital markets, nor did it impact hedging and mortgages on any of our ETPs,” Mognetti wrote .
The CEO called Terra’s incident “a scar that I personally will never forget”, adding that the company has implemented additional controls to better predict and mitigate similar incidents in the future.
In summary, CoinShares reported a loss of over £2.4m in 2021, worse than the loss of around £1.4m the previous year. The company’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2022 were £18.7 million, down 45% from a year ago.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
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