According to reports, TSX-listed Voyager Digital is another company negatively affected by the financial problems associated with crypto hedge fund Three Arrows Capital (3AC) In a letter to investors, Voyager management explained that 3AC has potentially defaulted on a $655 million loan and hopes to get some of the money by the end of the month.
Three Arrows Contagion 3AC owes Voyager Digital $655 million – management has set a repayment date
3AC’s financial woes appear to have started a contagion throughout the crypto industry, and while many companies said they are safe, others explained that they are suffering its effects. For example, Finblox a company backed by 3AC, detailed that on June 16 it had to suspend rewards (up to 90% APY) for all usersand the platform upped its withdrawal limits as well. This week, publicly traded crypto company Voyager Digital revealedthat it was addressing issues related to 3AC.
In a letter sent to Voyager investors on Wednesday, the company revealed that it owed $655 million and that 3AC was supposed to repay the funds in bitcoin (BTC) and stablecoin USD coins (USDC). Voyager owes 15,250 BTCand 350 million USDC. Management said it had originally asked for 25 million USDC to be paid by June 24, but was now asking for USDC and the entire balance ofBTCby June 27.
TSE-listed VOYG-T loses half of its value in one day – Voyager “cannot assess the amount recoverable at this time”
The news did not sit well with Voyager investors, with the company’s stock dropping 53% in value over the past 24 hours. VOYG-T, a TSE-listed stock, is currently trading at $0.76 per unit, down 52% On June 21, VOYG-T traded at $1.60 per share and hit an all-time high (ATH) of $32.68 per share in March 2021 VOYG-T is currently more than 97% lower than ATH, and the stock has been sliding lower since the value of the crypto market dropped; the announcement of the 3AC loan default added another blow to the value of the company’s stock.
The letter discussing the initial USDC payment request, and the request for the entire balance, states that Voyager is unsure if it will be repaid.” Neither of these amounts have been repaid, and if [Three Arrows] is unable to repay any of the requested amounts by these specified dates, it will constitute an event of default.” Voyager stated.” The company is “unable to assess the amount it can collect at this time.” Bitcoin.com News recently reported on Three Arrows Capital, explaining that the company’s founder has been silent on the situation.
Kyle Davies, co-founder of 3AC, disclosed to theWall Street Journal (WSJ)that the fallout from Terra LUNA and UST hurt the company and that plans were being made to find a “fair solution” for all 3AC constituents. Furthermore, 3AC allegedly tried to sell GBTC arbitrage to a number of large investors days before the company’s rumored collapse; in addition to Finblox, Voyager, and 3AC, Mike Novogratz’s Galaxy Digital has seen its Terra LUNA and UST crash Since then, the stock price has fallen significantly. Galaxy’s stock price has fallen nearly 90% from its mid-November high.
Novogratz also went a bit silent after the Terra fiasco, but later issued a public apology for the incident, but stated that Galaxy was not hurt much by Terra’s collapse. This, Novogratz said, was because Galaxy stuck to its core investment tenets, which included investing only in things it could afford to lose. Since the letter, Novogratz has become a bit more active on social media, but many others who promoted or invested in Terra have remained silent or disassociated from the blockchain project.
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