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!

The content site is one of the sites that provide the service of answering general questions and solving puzzles and crossword puzzles

Where the content site is primarily interested in answering your questions in all areas, including solving puzzles and crossword puzzles

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.

Read:NFT buyer of Jack Dorsey’s first tweet arrested in Iran

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.

Read:After White Paper Revealed…How Will China’s CBDC Currency Integrate Smart Contracts?

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

Read:A real test of the ICP project after the launch of the first non-fungible “ICPunk NFT” tokens on its network

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

And you can ask questions on the content site through the word “Ask a question” at the top of the site, where we answer your questions in a short time

Previous post
Cryptocurrency exchange FTX acquires a Canadian exchange and expands further into North America
Next post
After Bitcoin fell to the level of $ 20 thousand … the index of the “Grayscale Bitcoin Trust” fund reached its lowest levels