According to reports, TSX-listed Voyager Digital is another company that has been negatively affected by financial issues involving crypto hedge fund Three Arrows Capital (3AC). In a letter to investors, Voyager’s management explained that 3AC likely defaulted on a loan of $655 million and expects to receive some of the funds by the end of this month.
The Three Arrows Contagion: 3AC owes Voyager Digital $655 million — management has set a repayment date
3AC’s financial difficulties triggered a transition across the crypto industry and while many firms said they were safe, others explained that they were suffering from the fallout. For example, a company backed by 3AC called Finblox Detailed On June 16 it had to stop rewards (up to 90% APY) for all of its users, and the platform also raised the withdrawal limit. This week, publicly listed crypto company Voyager Digital revealed that it was dealing with issues related to 3AC.
In a letter sent to Voyager investors on Wednesday, the company revealed it owed $655 million and was to pay 3AC the funds in bitcoin (BTC) and the stablecoin USD Coin (USDC). Voyager owes 15,250 BTC and 350 million USDC, according to the company. Management said that it had originally asked to pay $25 million in USDC by June 24, but now wants the entire balance of USDC and BTC by June 27.
TSX-listed stock VOYG-T loses half its value in one day – Voyager ‘unable to assess the amount it will be able to recover at this point’
The news didn’t sit so well for Voyager investors as shares of the company fell 53% in value during the 24-hour period. Currently, the TSX-listed stock VOYG-T is down 52% and trading at $0.76 per unit. On June 21, VOYG-T exchanged hands for $1.60 per share and in March 2021, VOYG-T saw an all-time high (ATH) at $32.68 per share. VOYG-T is currently more than 97% lower than ATH and the stock has been trending lower since the crypto markets fell in value. The 3AC loan default announcement added another blow to the value of the company’s shares.
The letter, which discusses the initial USDC payment request, and then the request for the entire balance, says that Voyager does not know whether it will be repaid. “None of these amounts have been paid, and by failure” [Three Arrows] To repay any requested amount by these specified dates would constitute an occurrence of default,” Voyager said.[The company is] At this point it is unable to assess the amount she will be able to recover. Bitcoin.com News recently reported on Three Arrows Capital and explained how the company’s founders have remained silent about the situation.
3AC co-founder Kyle Davis revealed to The Wall Street Journal (WSJ) that Terra LUNA and UST’s results hurt the company and that plans were being made to find “equitable solutions” for all components of 3AC. Furthermore, 3AC reportedly tried to trade GBTC arbitrage for several big-name investors a few days before the company’s collapse. In addition to Finblox, Voyager and 3AC, Mike Novogratz’s Galaxy Digital has seen its shares drop significantly since the Terra Luna and UST fallout. Galaxy’s shares are down nearly 90% from their share price highs in mid-November.
Novogratz also remained silent for a while after the failure of Terra, but then published a public apology regarding the matter, but said that Terra’s collapse did not cause much damage to the Galaxy. That’s because Novogratz said Galaxy rests on a core investing principle that involves investing only in what you’re comfortable losing. Since the letter, Novogratz has been slightly more active on social media, while many others promoting or investing in Terra have remained silent or distanced themselves from the blockchain project.
What do you think about the problems Voyager Digital is facing with crypto hedge fund 3AC? Let us know what you think about this topic in the comment section below.
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