Quick take:
- Three Arrows Capital still owns popular bluechip NFTs.
- The bankrupt crypto hedge fund defaulted on a $670 million loan last month.
- It was asked to liquidate its assets in Asia before filing for bankruptcy in the US.
Three Arrows Capital’s troubles have been compounded by calls to liquidate the crypto hedge fund’s assets. The venture capital firm has since taken measures to protect its US assets by filing for Chapter 15 bankruptcy.
Among the assets that could survive liquidation in other parts of the world is the 3ACs portfolio of blue-chip NFTs, which it owns through its associated NFT-focused fund Starry Night Capital. The fund was launched by 3AC co-founders Su Zhu and Kyle Davies in partnership with an NFT collector who operates under the pseudonym VincentVanDough.
According to data filed by Dune Analytics dashboard builder @21shares, the troubled crypto company owns NFTs from some of the leading projects including CryptoPunks and ArtBocksCurated.
According to the holdings report, Starry Night Capital holds 11 CryptoPunks NFTs, worth more than $3 million, equating to an average price of about $273k per Punk.
The VC also holds a whopping 330 ArtBlocksCurated NFTs valued at an average price of $7,525 for a total of nearly $2.5 million.
The firm also owns one Bored Ape Yacht Club NFT valued at $61,907, two Mutant Ape Yacht Club NFTs worth $122,602, ArtBlocks NFTs, PEGZ, and many more. Overall, the NFTs in its portfolio are worth approximately $7.5 million as of this writing.
After news broke that 3AC had defaulted on a $670 million loan on June 27, reports emerged a few days later claiming that the owner used borrowed funds to invest in personal wealth, including real estate. Authorities in Singapore are still probing the company as calls to liquidate its assets intensify.
Three Arrows is not the only crypto company at risk of going under amid the crypto crash. Crypto lending platform Celsius Network recently saw an opportunity for a potential rescue fail to materialise after leading crypto exchange company FTX decided against acting on its plans to buy it.
FTX subsequently proceeded to acquire Celsius’ rival BlockFi in a deal that could be worth a maximum of $240 million.
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