Voyager Digital, which is listed on the Toronto Stock Exchange, is another company reportedly negatively affected by financial issues related to crypto hedge fund Three Arrows Capital (3AC). In a letter to investors, Voyager’s management explained that 3AC may be in arrears on a $655 million loan and hopes to receive some funding by the end of the month.
Three Arrows Spread: 3AC owes Voyager Digital $655 million – management has set repayment date
3AC’s financial woes appear to be starting to spread across the crypto industry, and while many companies say they are safe, others explain that they are suffering. For example, Finblox, a company backed by 3AC detailed On June 16, it had to suspend rewards for all users (up to 90% APY), and the platform also increased withdrawal limits. This week, publicly traded crypto firm Voyager Digital disclose It is dealing with 3AC related issues.
In a letter to Voyager investors on Wednesday, the company disclosed that it was owed $655 million, which 3AC was supposed to repay in bitcoin (bitcoin) and the stablecoin USD Coin (USDC). Voyager owes $15,250 bitcoin It also has $350 million in cash, according to the company.Management said it initially asked for $25 million worth of USDC to be paid by June 24, but now it wants the full balance of USDC and bitcoin until June 27th.
TSX-listed stock VOYG-T loses half its value in one day – Voyager ‘currently unable to assess how much it can recover’
With the company’s stock down 53% in 24 hours, the news doesn’t seem like a good fit for Voyager investors. Currently, VOYG-T, a stock listed on the Toronto Stock Exchange, is down 52% and is trading at $0.76 per unit. On June 21, VOYG-T changed hands at $1.60 per share, and in March 2021, VOYG-T hit an all-time high (ATH) of $32.68 per share. VOYG-T is currently trading more than 97% below ATH, and the stock has been sliding since the crypto market value fell. 3AC’s loan default announcement sent another blow to the company’s share price.
The letter discussing the initial USDC payment request, and then the entire balance request, said Voyager did not know if it would be repaid. “None of these payments have been repaid, [Three Arrows] Repayment of any requested amount before these specified dates will constitute an event of default,” Voyager said.[The company is] The amount that can be recovered cannot be assessed at this time. Bitcoin.com News recently reported on Three Arrows Capital and explained how the company’s founders have kept quiet about the situation.
3AC co-founder Kyle Davies did it disclose arrive Wall Street Journal (WSJ) The fallout from Terra LUNA and UST hurt the company, and plans were made to find a “fair solution” for all members of the 3AC. In addition, the alleged 3AC try to pitch A few days before the company’s rumored collapse, GBTC carry trades gave many big-name investors. In addition to Finblox, Voyager and 3AC, shares of Mike Novogratz’s Galaxy Digital have fallen sharply since Terra LUNA and UST. Shares of Galaxy are down nearly 90% from their mid-November highs.
After the Terra fiasco, Novogratz was also silent for a while, but then published a public apology On the matter, but said the Galaxy was not too affected by the Terra collapse. That’s because Novogratz says Galaxy adheres to the core tenets of investing, which include investing only in what you’re willing to lose. Since the letter, Novogratz has become more active on social media, while many others promoting or investing in Terra have remained silent or disconnected from the blockchain project.
What do you think of Voyager Digital’s problems with crypto hedge fund 3AC? Let us know what you think about this topic in the comments section below.
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