Crypto: 3AC Reportedly Receives Liquidation Order

Crypto VC hedge fund Three Arrows Capital, one of several cryptocurrency companies in rough financial seas, has reportedly been officially ordered to liquidate.

Crypto VC hedge fund Three Arrows Capital (3AC), one of several cryptocurrency companies in rough financial seas, has reportedly now been officially ordered to liquidate.

According to Sky News, which broke the story, “a person familiar with the situation” confirmed that a court order was issued in the British Virgin Islands on June 27 to liquidate the crypto company.

It is a story in development and further details about it are scarce at the time of writing, but if true, it will only confirm what most in the crypto industry already suspect is more than likely to happen.

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It is well known that the Singapore crypto hedge fund, led by well-known industry identities Su Zhu and Kyle Davies, has failed to meet margin calls from its lenders this year amid bearish market conditions.

And since we started addressing 3AC’s issues a few weeks ago, the number of liquidations it has incurred across multiple positions has grown to an estimated $400 million.

In addition, crypto brokerage Voyager issued a notice of default to 3AC earlier this week for failing to repay a hefty loan. And when we say hefty, we’re talking over $670 million in USDC and BTC combination. ouch.

However, it doesn’t matter that MicroStrategy buys …

Yes that’s right. Laser-eyed Bitcoin gigabull Michael Saylor just tweeted that his business intelligence software company MicroStrategy (MSTR) has bought even more BTC.

Cue the DiCaprio Wolf of Wall Street “I’m not leaving” memes… you know them.

The company’s latest purchases were made in the past two months – from May 3 to June 28 – bought at an average price of US$20,817 per coin.

The new additions bring MicroStrategy’s holdings to 129,699 BTC, acquired for $3.98 billion – at a total average cost of $30,664 each.

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Bitcoin is trading at $20,100 at the time of writing, making the company’s holdings worth about $2.6 billion. Um, only about $1.38 billion lower than…

Here’s Saylor on CNBC recently, dismissing the chatter about MicroStrategy feeling the financial heat, and how these levels are “an ideal starting point to buy Bitcoin”…

He looks like a red hue in that clip… probably just needs to swallow more Bitcoin, get a nice orange hue.

Michael Burry thinks the Fed can roll back by the end of the year

Wait a minute… here’s another thing that caught our eye.

The famously blunt American hedge fund investor Michael “Big Short” Burry recently posted an interesting tweet. And it’s a potential piece of market hopium, which may be flying a little under the radar.

The famous housing bubble fortune teller cites a phenomenon known as “the Bullwhip effect,” and as he suggested, we had to Google it.

Essentially, it refers to the deflationary effects of retailers having too much inventory – too much inventory. The theory there is that eventually, retailers will have to cut prices to get rid of their over-stocked goods.

Either way, the result is that Burry seems to indicate that this effect is some kind of precursor or catalyst for a change of course by the US Federal Reserve.

A reversal of the inflation-fighting, rate-raising, quantitative tightening measures that have so far defined the crippling bear market of the year.

When? “Later this year,” he suggests. Soooo… a possibly more bullish turn for the stocks, bonds and crypto sold in November/December? Think you’re going hmm.

You may have to endure a little more pain and/or sideways action until then, especially if more of those “crypto contagion” stories (see 3AC above) are coming out.

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Originally published as Three Arrows Capital ‘Receives Liquidation Order’

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