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After the huge losses that it suffered… the founders of “Three Arrows Capital” clarify the situation of the company!

After the huge losses that it suffered… the founders of “Three Arrows Capital” clarify the situation of the company!

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Answer After the huge losses that it suffered… the founders of “Three Arrows Capital” clarify the situation of the company!

“Three Arrows Capital” company is one of the names that have been with us recently in Arab Bitcoin News And that is after entering into financial distress due to the rapid and unexpected decline in the prices of cryptocurrencies.

Which made speculations and analyzes indicate the approaching collapse.

recently and in an interview Yesterday, Friday, Kyle Davis and Zoe Su, founders of Three Arrows Capital, said that the company is considering selling its assets and saving itself, especially as the risk of bankruptcy approaches.

“Davis” explained that the company, after suffering heavy losses, appointed legal and financial advisors to work on a final solution.

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Davis also confirmed that the collapse of TerraUSD and LUNA in May had a significant impact on the company’s assets under management.

Last April, the company had $3 billion in assets under management.

For now, the company is hoping to reach an agreement with the lenders to get more time to work on a solution that will get it out of the way.

“Three Arrows Capital” and seeking quick solutions:

Three Arrows Capital is facing the risk of bankruptcy as major companies continue to liquidate their positions in a cryptocurrency hedge fund.

Three Arrows is currently exploring options, including asset sales and financial aid from another company, Davis told the Wall Street Journal yesterday, June 17.

The hedge fund lost a total of $60 billion in market value due to the Terra crash.

The company was able to withstand the loss, but the drop in the price of Bitcoin, Ethereum and other cryptocurrencies led to more financial problems.

About that, he told Kyle Davis:

Terra-Luna’s attitude surprised us a lot.

The massive sell-off in the crypto market right now is unprecedented.

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As the value of digital assets plummets, some lenders have started demanding partial or full repayment of loans.

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In addition, the interest rate hike by the US Federal Reserve exacerbated the selling in the market.

Three Arrows is still trying to determine its losses and the value of its illiquid assets.

For your information, Three Arrows Capital holds significant positions in both the Grayscale Bitcoin Trust and stETH.

The hedge fund Three Arrows Capital has swapped most of its multi-million stETH cryptocurrency into USDT or USDC to pay off lenders’ debt.

Concurrently, companies such as BlockFi, FTX, Deribit and BitMEX liquidated their positions in “Three Arrows Capital,” which made matters worse.

Read also:

IMF: Bitcoin consumes millions of times more energy than credit cards

Futures: The future of cryptocurrency and a new battleground for cryptocurrency trading platforms


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