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Bitcoin News Three Arrows Capital receives default notice on $660 million loan

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Multiple news outlets have reported that Three Arrows Capital is under enormous pressure to meet Monday’s deadline and pay back more than $670 million on loans or face default.

The possibility of a crypto-focused hedge fund missing the deadline set by Voyager Digital to repay its 15,250 Bitcoin and $350 million USDC loan could have major consequences for the entire digital asset market. .

At Monday’s exchange rate, the total loan amount exceeded $675 million. Voyager has granted Three Arrows until June 24 to pay back US$25 million in USDC and outstanding balance by June 27.

Recommended reading – Morgan Creek says it will enter bid to secure $250 million against FTX BlockFi bailout

Voyager shares down after revealing 3AC

This year, shares of Toronto Stock Exchange-listed company Voyager have fallen as much as 94%. Voyager’s share price plummeted more than 60% last week after the company admitted to having exposure to 3AC.

According to reports, Voyager wants to pursue recovery from Three Arrows and is currently engaged in discussions with its attorneys about the various legal alternatives available to it.

Image: PR Newswire

Stephen Ehrlich, managing director of Voyager Digital in Toronto, said:

“We are working diligently… to strengthen our balance sheet and pursue options so we can continue to meet our clients’ liquidity needs.”

Three Arrows is well known for its high leverage crypto bets and is one of the most prominent crypto hedge funds. On the surface, the crypto hedge fund insolvency, also known as 3AC, continues to execute client orders and process withdrawals while operating normally.

Alameda Ventures awarded Three Arrows a $500 million line of credit, of which the company used $75 million. Additionally, 3AC may continue to use Alameda “to facilitate customer orders and withdrawals, if necessary.”

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Crypto total market cap at $921 billion on the daily chart | Source: TradingView.com

Three Arrows Can Sell Its Property

The Wall Street Journal reported last week that Three Arrows Capital, based in Singapore, is considering options including an asset sale and a bailout by another company due to a slump in the digital asset market. reduce.

3AC’s default on a $660 million loan shows the hedge fund’s strained liquidity. The significant drop in the value of Ethereum Staking Lido (stETH), which 3AC used heavily as collateral, caused the company to receive repeated margin calls, draining the company of resources. finance.

Recommended reading – Harmony Danger $1M Reward for Returning $100 Million Stolen Funds – Is It Enough?

Three Arrows’ problems appeared to have started earlier this month when Zhu Su, Co-Founder and CEO of Three Arrows Capital, tweeted a somewhat strange message saying the company was in the process of “delivering”. communicate with all stakeholders” and focus on finding a solution.

Featured image from Corporate Finance Institute, chart from TradingView.com

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Teja
Teja
I am passionate about journalism and using new technology to spread news. I am also interested in politics and economics, and I am always looking for ways to make a difference in the world. I am the CEO of Janaseva News, and I am 24 years old.

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