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Voyager Digital Discloses Three Arrows Capital Exposure After Securing $485 Million Loan From Alameda

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Voyager Digital Discloses Three Arrows Capital Exposure After Securing $485 Million Loan From Alameda

Summary:

  • Three Arrows Capital Owes Voyager 15,250 BTC and $350 million USDC.
  • Voyager has set June 27, 2022, as the deadline for full repayment of the digital assets.
  • The crypto broker is prepared to explore legal remedies if 3AC fails to meet its payment obligation, per reports.
  • Voyager also recently secured a $485 million credit line from SBF-backed Alameda research to meet liquidity demands.

Voyager Digital has revealed the extent of its exposure to Three Arrows Capital as the beleaguered crypto hedge fund faces mass liquidations and insolvency hurdles amid turbulent digital asset market conditions. 

According to a statement released by Voyager on Wednesday, 3AC owes the crypto broker $350 million in USDC and some 15,250 BTC worth an estimated $300 million at press time. Voyager requested a repayment of $25 million in Circle’s USDC by June 24, 2022, at first. 

While it’s unclear whether Su Zhu’s 3AC responded to the initial request or not, Voyager Digital has now asked for the crypto hedge fund to repay all digital assets by Monday, June 27, 2022. The total loan balance is approximately $650 million.

[DB] Voyager’s exposure to 3AC consists of 15,250 BTC and $350 million USDC, 3AC has not repaid requested amounts.

Voyager: Failure to repay by June 27 will constitute an event of default

Voyager intends to pursue recovery from 3AC

— db (@tier10k) June 22, 2022

The crypto broker said that they are ready to consider legal remedies if 3AC defaults on the issued repayment date, per the statement.

Neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default. Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors regarding the legal remedies available. The Company is unable to assess at this point the amount it will be able to recover from 3AC.

Three Arrows Capital currently faces monetary obligations on multiple fronts following a massive slump in the crypto market after Bitcoin fell below $20,000. As EthereumWorldNews reported, 3AC’s leveraged positions on Bitmex, Deribit, and FTX were liquidated.

SBF-Backed Alameda Loans $$485 million To Voyager Digital 

The crypto broker also confirmed its credit line agreement with Alameda Ventures, the VC firm backed by FTX CEO Sam Bankman-Fried. Alameda’s credit line includes $200 million in USD and USDC. A 15,000 BTC revolver is also attached to the deal.

Voyager Digital pointed out the loan will bolster the company’s balance sheet and protect customer assets in case of volatility or unexpected macro conditions. 

To better serve and protect our customers in current market conditions, today we announced that we signed a term sheet for a $200 million and 15,000 BTC revolving line of credit with industry leader, Alameda Research.

Read the release: https://t.co/Pz1b3wpaj0

— Voyager (@investvoyager) June 17, 2022

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Ethereum

Wall Street Analysts Hint MicroStrategy (MSTR) is Worth Buying Despite a 87% Pullback from Feb. 2021 Highs

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Wall Street Analysts Hint MicroStrategy (MSTR) is Worth Buying Despite a 87% Pullback from Feb. 2021 Highs

Summary:

  • MicroStrategy (MSTR) stock value has undergone an 87% correction from its February 2021 highs of $1,350.
  • However, Wall Street analysts still believe it is a buy with a potential to rise to $950 from current levels of $180.

Since Michael Saylor revealed MicroStrategy’s Bitcoin strategy, the value of MSTR stock has been tied to the hip with BTC’s price action.

As it happens, the latter is undergoing a drawdown from its all-time high of $69k set in November 2021 to a local of $17,600 set on the 19th of this month. This translates to a 74.4% pullback in the value of Bitcoin in roughly eight months.

MicroStrategy (MSTR) Value Has Undergone an 87% Pullback from February 2021 Highs.

Similarly, MicroStrategy’s (MSTR) stock value has undergone an 87% pullback from February 2021 highs of $1,350 to its current value of $181. A glance at the daily MicroStrategy chart below reveals that MSTR is still in bear territory, trading below the 50-day (white), 100-day (yellow), and 200-day (green) moving averages.

Ethereum's Vitalik Criticizes 3AC's Co-founder Alleged Yacht Purchase, Says There are More Honorable Ways to Burn $50M 17

Also, from the chart, it can be observed that the daily MACD hints at a low level of buying of MSTR. Furthermore, the neutrality of the daily MFI and RSI hint at an uncertain future for MicroStrategy stock in the traditional markets for the next few days.

Wall Street Analysts Hint MicroStrategy (MSTR) is a Buy.

However, despite the clear bearish environment facing MSTR, Wall Street analysts still believe that MicroStrategy’s stock is still a buy. According to a recent report by Bloomberg, three out of four brokerages that follow the company recommend buying its shares with an average target price of more than triple its current value.

Mark Palmer, an analyst at BTIG, explained that MicroStrategy provides investors with indirect exposure to Bitcoin, thus giving a $950 share price target for MSTR and a $95k target for Bitcoin by 2023. He said:

MicroStrategy provides equity investors in particular with not only exposure to Bitcoin, which currently they don’t have many efficient ways to access. The company also offers an operating business that generates cash with which to buy more Bitcoin.

The Bloomberg report also reiterated the earlier mentioned correlation between the price of Bitcoin and that of MicroStrategy, given the company’s dedication to holding their BTC stash. Furthermore, MSTR has been hit hard by the ongoing market drawdown, ‘slumping 69% this year’ compared to the ‘Nasdaq’s 29% decline and Bitcoin’s 55% drop.’

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Solana To Venture Into Smartphones With a Focus on Web3 Mobile Apps

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Solana To Venture Into Smartphones With a Focus on Web3 Mobile Apps

Summary:

  • Solana developers have unveiled a flagship Android smartphone dubbed Saga.
  • The phone will be available for pre-orders immediately and delivery in early 2023.
  • Saga will also feature unique Solana functionality integrated within.
  • Solana developers also debuted Solana Mobile Stack, an open-source SDK for Android enabling Web3 apps on Solana.

Solana developers are venturing into the telecoms industry by launching a flagship Android smartphone dubbed Saga. The smartphone is the first product of Solana’s new subsidiary, Solana Mobile.

According to the official Saga website, the smartphone will feature a 6.67″ OLED display, 512 GB storage, and the latest flagship Snapdragon® 8+ Gen 1 Mobile Platform. The latter’s security features will enable the Solana Mobile Stack’s seed vault and an additional Secure Element built into the device, which keeps private keys, seed phrases, and secrets ‘separated from the application layer yet still capable of interacting with apps running on the device or in a mobile browser.’

$100 for Saga Pre-orders, Applied to the Anticipated Final Cost of $1,000.

Saga will also be explicitly built for Web3 functionality such as decentralized exchanges, NFT marketplaces, and much more. The Saga smartphone will be available immediately for pre-order, with deliveries estimated to be fulfilled in early 2023.

The team at Solana has also provided a refundable $100 pre-order fee which will be applied to the final anticipated cost of $1,000. However, developers will be given priority during the delivery of the smartphone to test the Solana Mobile Stack and Saga.

Ethereum's Vitalik Criticizes 3AC's Co-founder Alleged Yacht Purchase, Says There are More Honorable Ways to Burn $50M 17
Sneak peek of the Saga smartphone. Source, Solana.com.

Smartphones are Pivotal to Web3 Adoption.

Raj Gokal, the co-founder of Solana, explained that mobile devices such as Saga were pivotal to Web3 adoption. He said:

We chose the Saga name because the story of crypto is still being written. This is the next chapter of this narrative and we believe opening up crypto to mobile will lead to greater adoption, better understanding, and more opportunities.

OSOM will carry out Saga’s design and manufacturing. It is a leading Android development company with a vast background in building computing hardware for Google, Apple, Intel, and others.

Jason Keats, co-founder, and CEO of OSOM, further reiterated the importance of mobile devices in boosting Web3 adoption. He explained:

Saga starts from first principles to create a mobile experience for individuals, developers, and ecosystem participants that opens a new era of mobility.

The world needs novel hardware to embrace the future that is web3, and building out an ecosystem that looks to the future without being burdened by past legacy ecosystems is hugely exciting for us.

Solana Also Launches Solana Mobile Stack.

Solana Labs CEO Anatoly Yakovenko made Saga’s unveiling during an event in New York City, where he also provided further details of the earlier mentioned Solana Mobile Stack: an Android framework that allows developers ‘to create rich mobile experiences for wallets and apps on Solana and create a Secure Element for private key management.’

The Solana Mobile Stack (SMS) is an open-source software development kit optimized for Web3 and easy to use. It also has a new set of libraries for wallets and apps, thus providing developers the foundations to create rich dApp experiences on Solana.

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Chairman Powell: Digital Dollar Is Something We Really Need to Explore As a Country

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Chairman Powell: Digital Dollar Is Something We Really Need to Explore As a Country

Summary:

  • Chairman Jerome Powell has stated that the US Federal Reserve plans to recommend a Central Bank Digital Currency (CBDC) to Congress.
  • According to Chairman Powell, a CBDC is a crucial financial innovation that will affect all Americans.

The US Federal Reserve Chairman, Jerome Powell, has said that the central bank is looking into recommending to Congress how to go about launching a Central Bank Digital Currency (CBDC).

Chairman Powell shared his insights into a potential CBDC in the United States during a presentation of the Semiannual Monetary Policy Report, and the State of the Economy to the House Financial Services Committee held earlier today.

In his presentation, Chairman Powell stated that a Central Bank Digital Currency was something the United States needed to explore as a country and should not be a partisan issue. He added:

It’s a very important potential financial innovation that will affect all Americans. Our plan is to work on both the policy side and the technological side in coming years and come to Congress with a recommendation at some point.

A Central Bank Digital Currency Will Help Maintain the US Dollar’s, International Standing.

Chairman Powell’s statement on the United States needing to explore a Central Bank Digital Currency as a country echoes similar remarks he made last week, whereby he emphasized the significance of the US dollar remaining the dominant global currency.

He shared his insights on the importance of a dominant US dollar during a speech at a research conference in Washington DC on  ‘International Roles of the US Dollar.’ He started by stating that the US Dollar had been at the center of the international financial and monetary system since World War II. The US Dollar has since become the world’s reserve currency and the most widely used currency for payments and investments.

In addition, Chairman Powell forecasted that a Central Bank Digital Currency would help maintain the dollar’s international standing. He said:

And in light of the tremendous growth in crypto-assets and stablecoins, the Federal Reserve is examining whether a U.S. central bank digital currency (CBDC) would improve on an already safe and efficient domestic payments system.

As the Fed’s white paper on this topic notes, a U.S. CBDC could also potentially help maintain the dollar’s international standing. As we consider feedback from the paper, we will be thinking not just about the current state of the world, but also how the global financial system might evolve over the next 5 to 10 years.

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