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CoinShares losses nearly $3 million due to its TerraUSD holdings

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By Shella Artillero - - 5 Mins Read

A second cryptocurrency company has revealed its exposure to Terra. Due to its holdings, CoinShares recorded a loss of 2.4 million pounds (close to $3 million at current prices) in the quarter ending June 30. This was the company's first loss-making quarter since going public in March 2021

£15.3 million in income was lessened by £17.7 million in UST. Since then, the London-based cryptocurrency company has sold its holdings in UST. (£17.7m is almost $21.5m at the current exchange rate.)

Even if it was relatively little compared to the losses experienced by other participants in our business, CoinShares CEO Jean-Marie Mognetti stated that the episode's financial impact "has of course had a material impact on our quarter." in the document. "Adjusted EBITDA is down £8.2 million for the quarter. Our Adjusted EBITDA would have been about £9.5 million had the second quarter's loss at US Terra not occurred.

In May, Terraform Labs' algorithmic stablecoin TerraUSD lost its peg to the US dollar, resulting in a stunning drop of its governance token LUNA. Companies like Dragonfly Capital and Multicoin Capital were among the first to declare that they had no exposure to UST or LUNA in the weeks following the meltdown.


Others, like Mike Novogratz, the CEO of Galaxy Digital and a supporter of Terra, sent lengthy letters to disclose their exposure: $400 million worth of LUNA at the end of last year, which the business predicted would result in a $300 million quarterly lossof dollars.

Asset manager CoinShares, established in London, serves institutions and accredited investors. CoinShares Physical, the company's own exchange, tracks a number of different assets, including Bitcoin, Ethereum, Solana, Polkadot, and Cardano.

The company offers a weekly cash flow report that features both its own products and those of the competition, building on its focus on institutional investors. monitors the inflows and outflows of ETPs based on cryptocurrencies.

James Butterfill, the head of research at CoinShares, reported that the company saw net inflows of $81 million last week, making it the fifth consecutive week that inflows outweighed outflows. According to its quarterly report, CoinShares reported 1.7 billion pounds ($2.1 billion) in assets under management at the end of June, the lowest level since the end of 2020.

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