Blockchain.com Sells Assets to Cover Losses to Three Arrows Capital

02/18/2023 21:28 • Metaverse Matters • 156 views

It is reported that Blockchain.com has been trying to sell assets to fill its exposure to Three Arrows Capital (3AC) of US $270 million. The spokesman said that its venture capital department BlockchainVentures recently sold 80% of the shares of PolySign. Blockchain.com participated in the US $53 million round B financing of this infrastructure start-up in 2021. According to the source, the company is still actively seeking to raise more funds, even if the valuation is significantly reduced, and hopes to provide debt warrants.

Blockchain.com sold assets to fill its exposure to Sanjian Capital of US $270 million

Interpret the above information:

Blockchain.com, one of the most prominent players in the blockchain industry, has reportedly been forced to sell off its assets to cover its losses to Three Arrows Capital (3AC). According to reports, Blockchain.com is struggling to pay back the US $270 million it owes to 3AC due to a losing trade. As a result, the company’s venture capital department, BlockchainVentures, had to sell off 80% of its shares in PolySign, an infrastructure startup, which it had previously invested US $53 million in during a round B financing in 2021.

Despite this sale, the company is still actively seeking to raise more funds, even if it means reducing its valuation significantly. Blockchain.com is reportedly in talks with investors to provide debt warrants as collateral for additional funds. Debt warrants are a form of financial security that allows the holder to purchase a bond at a future date at a predetermined price.

The fact that Blockchain.com is reportedly struggling to cover its losses to 3AC is a significant setback for the company, given its status as a leading player in the blockchain industry. Blockchain.com offers users a range of services, including wallet management, cryptocurrency trading, and market data analysis. However, the recent losses could jeopardize the company’s financial stability and future growth prospects.

On the other hand, Three Arrows Capital is known for its aggressive investment strategies in the cryptocurrency space, particularly in Bitcoin. The hedge fund has invested heavily in Bitcoin since its inception, making it one of the largest holders of the cryptocurrency. 3AC’s investment in Blockchain.com may have been strategic, given the company’s prominent position in the blockchain sector.

In conclusion, Blockchain.com’s reported asset sales and debt warrant negotiations highlight the company’s financial challenges and its efforts to recover from losses to 3AC. However, it remains to be seen how successful these efforts will be and whether the company can regain its financial stability and growth trajectory.

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