Sam Bankman-Fried is rapidly ending up being crypto's leading lending institution of last option.
Cover picture by Eva Marie Uzcategui/Bloomberg.
Key Takeaways
- Crypto exchange Voyager was exposed to Three Arrows Capital to the tune of $667 million.
- The business has actually currently protected a loan from Alameda Research in order to ensure Voyager clients will not be affected by 3AC's disaster.
- The news sent out Voyager's stock down 63% on the day.
Voyager Digital has actually been exposed to have actually had $667 million in direct exposure to Three Arrows Capital; the business has actually protected a loan from Alameda Research to guarantee its consumers will not be affected by the hedge company wipeout.
Voyager's Exposure to 3AC
Crypto exchange Voyager revealed today that it was greatly exposed to Three Arrows Capital.
According to the business's news release, Voyager's direct exposure to the crypto hedge fund includes 15,250 BTC and $350 million USDC, for an overall of roughly $667 million. Voyager has actually asked for Three Arrows Capital to pay back $25 million by June 24 and the rest of their exceptional balance by June 27; failure to finish payment by those due dates will be analyzed as "an occasion of default."
Voyager's stock (VOYG) dropped following the news and is now at -63% on the everyday, opening at $1.30 and presently trading at $0.59
Three Arrows Capital (3AC) was among the leading crypto hedge funds on the planet. Its co-founders, Su Zhu and Kyle Davies, ended up being infamous in the crypto area for pressing the "supercycle" thesis, arguing that Bitcoin would no longer experience -80% drawdowns. They acknowledged recently that the hedge fund had actually been eliminated by current market volatility.
Alameda Swoops In
In the exact same news release, Voyager detailed a contract it had actually gotten in with crypto trading company Alameda Research in order to "satisfy client liquidity requirements."
Alameda will lend $200 million (money and USDC) and 15,00 0 BTC to Voyager in order to make sure the crypto exchange's solvency. Voyager itself presently has about $172 million in liquid properties. Voyager clients ought to for that reason not be affected by the business's direct exposure to Three Arrows Capital.
Alameda likewise indirectly holds 22,681,260 Voyager typical shares (about 11.56% of the business), which it had actually purchased $2.34 in May.
Voyager is not the very first crypto business Alameda creator Sam Bankman-Fried has actually bailed out. His crypto exchange, FTX, likewise used a $250 million credit to crypto lending institution BlockFi the other day.
Disclosure: At the time of composing, the author of this piece owned ETH and numerous other cryptocurrencies.
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