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Voyager Announces Large Exposure To Three Arrows Capital

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Voyager Digital lent over half of its loan book to Three Arrows Capital and announced major losses due to this exposure. The company’s stock took a massive hit.

Voyager Digital lent over half of its loan book to Three Arrows Capital and announced major losses due to this exposure. The company’s stock took a massive hit.

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The below is an excerpt from a recent edition of Bitcoin Magazine Pro, Bitcoin Magazine's premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, subscribe now[2].

Voyager’s Loan Book Exposure

Early on June 22, 2022, Voyager Digital[3], a crypto company which enabled users to deposit on their platform for yield, announced it took large losses from loans extended to Three Arrows Capital.

Their announcement follows some of our suspicions last week around Voyager and their lending counterparties. 

Now, looking back at the Voyager press release today on the exposure to 3AC, consisting of 15,250 BTC and $350 million USDC, when marking the bitcoin to its value at the end of Q1, you get an approximate value of $1.04 billion or almost exactly the amount loaned to Counterparty A and B combined. Entry-level detective work brings you to find that 3AC, formerly based in Singapore, relocated to the British Virgin Islands last year[4] before relocating again to Dubai this spring.

Voyager Digital's stock price tanked on the news of the company's exposure to 3AC.

Voyager Digital's stock price tanked on the news of the company's exposure to 3AC.

Unsecured Leverage

The last month in the crypto industry should serve as a lesson for experienced and new participants alike. “Yield,” often generated with layers of unsecured leverage on bearer assets is a ticking time bomb. One of the largest reasons that

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currensceneFLOGO WHTsquareThough not the oldest form of currency, some form of shell money appears to have been found on almost every continent. The shell most widely used worldwide as currency was the shell of Cypraea moneta, the money cowry.

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