Voyager Digital’s (VYGVF) share price fell 60% since it disclosed its Three Arrows Capital (3AC) exposure, with crypto industry stocks further down.
According to trading outlook data, VYGVF is down 60% during regular trading hours on June 22, closing down 50.84% for the day at $0.5998.
The sharp drop came after Voyager Digital revealed that potentially bankrupt Three Arrows Capital (3AC) owed the company about $660 million in 15,250 bitcoin (BTC) and 350 million USD coin (USDC).
Voyager has given 3AC until Friday (June 24) the $25 million to be paid, and the loan will be considered in default before the full amount is paid by next Monday (June 27). The company also said that it is working with lawyers on how to take legal action against 3AC should the alleged venture fund be unable to repay its debt.
Alameda Research has provided a 200 million USDC revolving loan and 15,000 BTC revolving loan to cover Voyager’s current liquidity problems. The company this week increased its 24-hour withdrawal limit from $25,000 to $10,000.
In response, Redditor AdLongjumping5010 in the r/CelciusNetwork sub-Reddit commented, “$10,000 is better than $0 at Celsius.”
Other crypto-related stocks continued to suffer. Coinbase stock (COIN) fell 9.71% to $51.91, while the heavy BTC led by Michael Sayer exposed MicroStrategy (MSTR), its shares fell 4.50% to $170.91.
$14 billion Coinbase is one of the dumbest things I’ve ever seen in the public markets.
Rivals only by Apple trading at 50% more than their cash balance at the end of 2008.
I can’t believe Boomer wrong price is causing me to transfer money to Stonk account.— Ryan Selkis (@twobitidiot) 22 June 2022
Crypto mining stocks also saw notable losses, with Riot Blockchain (RIOT) dropping 9.63%, while Bitfarms (BITF), Hut 8 (HUT), Marathon Digital Holdings (MARA), Core Scientific (CORZ) all fell around 5-7%. Fell. piece.
related: SBF and Almeida Take Steps to Prevent Crypto Collapse Contagion
The falling price of crypto stocks is a microcosm of the wider decline in the stock and crypto markets in 2022, with the benchmark S&P 500 index in bear market territory and down 21.6% since the start of the year. According to Bloomberg data, this is the first time this has happened since 1970.
related: Binance makes US BTC trading fee-free as competitors feel the heat
Investors in general have been nervous about the US Federal Reserve’s monetary policy and efforts to curb inflation by launching a series of interest rate hikes this year.
Fed Chairman Jerome Powell is holding his cards to his chest about how the government body will reel in inflation of late, but suggested that as the Fed continues to push borrowing costs higher, it could be ready for a recession. Is.
Testifying to the Senate Banking Committee on June 22, Powell said, “It’s certainly a possibility,” in response to a question from Democrat Sen. John Tester, adding that “it’s not our intended outcome, but it’s certain.” is certainly a possibility.”