Cryptos. The troubles of the Three Arrows Capital Foundation raise concerns about the worst in the industry

The winter of cryptocurrency is difficult for many players. In a matter of months, two billion capitalizations have risen in the smoke, and bitcoin or Ether prices are struggling to stabilize. All eyes are now on the hedge fund Three Arrow Capital. This giant with its 10 billion dollars finances a good part of the crypto ecosystem. He has invested in many companies in the field, but he is very “stablecoin:Terra, which collapsed in May last year. According to the specialized media The Block, the fund is approaching insolvency in a dangerous way. He allegedly liquidated Ether worth $ 400 million to avoid bankruptcy. And he sold a few stakes.

The Celsius lending platform is also in serious trouble. This week, it suspended the ability of its 1.7 million customers to withdraw or transfer their cryptocurrencies after their cryptocurrencies plummeted.

Over the past two years, several companies, including governments, have included crypto assets in their coffers. Tokens are often purchased at a higher price than the current price. The site bitcointreasuries.net lists dozens, such as Tesla, Square, Fidelity, El Salvador … All of them have capital losses.

In late April, Tesla-Elon Musk explained in a financial document that it had retained all of its 43,000 bitcoins it had bought a year earlier for $ 1.5 billion. They are worth only 940 million, or 560 million. ”lossespotential The company has not yet commented on this situation.

In its last quarterly report, the company has already shown a loss of $ 100 million. Cryptocurrencies in the company’s accounts are considered “intangible assets that have an indefinite useful life in accordance with applicable accounting rulessays Tesla. «Therefore, any decrease in their fair value below their carrying amount, at any time after their acquisition, will require us to record impairment payments, whereas we will not be able to reconsider any increase in market price prior to sale.«. The management of these cryptocurrencies will be addressed to them during the next quarterly results.

Microstrategy, a billion losses

For Tesla, the decline of bitcoin is unpleasant, but insignificant. Cryptocurrency represents only a small part of its portfolio. Instead, software publisher Microstrategy has made a bet on this currency. It has 129,218 tokens purchased in various amounts totaling $ 3.9 billion. At the current rate, they are worth only 2.8 billion, more than one billion. “lossespotential In March, the company borrowed $ 205 million from Silvergate Crypto Bank. These funds were used to buy more bitcoins for a pledge … more bitcoins.

In May, the company’s chief financial officer said that if bitcoin fell below $ 21,000, as it did on June 15, he would have to start a margin call. This is a situation where the company needs to demand more funds to avoid cash. CEO Michael Sailor told CNBC he would not have to take new measures.

«MicroStrategy is a special case. They repeated several times that they would not sell. It’s more a matter of conviction for his CEO“- explains Alexander Stachchenko, an analyst at KPMG blockchain cryptocurrency. It’s really unthinkable for Michael Sailor to liquidate his bitcoins. He regularly showed his love for this sign. On his Twitter account, he regularly promotes messages such as “Bitcoin is the solution to chaos“or,”we trust bitcoin“, reference”we believe in God“, The national motto of the United States.

Nobody knows how much the prices can fall. Binance’s co-founder and CEO Changping Zhao expects a long-term drop in prices. If he sees this new crypto winter as an opportunity to make new acquisitions at attractive prices for his company, as he explains in an interview with Fortune, then his personal fortune could melt 90% in January-June 2022. , according to Bloomberg Billionaires. Indicator.