Kyle Davies, one of the co-founders of Three Arrows CAPITAL (3AC), has said that the crypto hedge fund is exploring different options including getting rescued by another firm or asset sales. This comes after some top crypto exchanges liquated the firm’s leveraged positions.
Three Arrows Capital has grown to become one of the largest crypto-focused hedge funds over the past few years. However, after the Terra (LUNA) debacle a month ago and the current crypto market meltdown, the firm has been undergoing difficult times.
Bitmex, Deribit, and FTX crypto exchanges have already Liquidated Three Arrows Capital Leveraged Positions.
While the two co-founders of Three Arrows remained mum on the fate of the hedge fund, Davies opened up about the dire situation that the firm was facing during an interview with the Wall Street Journal (WSJ).
During the interview, Davies admitted that the firm had suffered losses following the collapse of the TerraUSD (UST) and Terra (LUNA), currently LUNA Classic. In particular, Three Arrow Capital along with others had participated in a $1 billion token sale conducted by the Luna Foundation Guard. Three Arrow Capital had invested $200 million in the token sale.
“The Terra-Luna situation caught us very much off guard.”
Besides the Terra (LUNA) debacle, the plummeting crypto prices are also hurting 2AC long crypto positions.
Addressing the situation, Davies said:
“This has pushed 3AC into looking for desperate options, including asset sale and a rescue by another firm.”
But he was quick to note that they are not the first to be affected by the current situation saying that many other firms have also been affected.
The post Three Arrows Capital to seek bailout or asset sale appeared first on CoinJournal.