Voyager shares plummet 60%, leading crypto stock red sea

Since Voyager Digital disclosed its Three Arrows Capital (3AC) exposure, its shares have plummeted 60%, while crypto stocks have also fallen further.

According to TradingView data, on June 22, VYGVF once plummeted by 60% during regular trading hours, and finally closed at $0.5998, a 50.84% drop on the day.

After Voyager Digital disclosed that potentially insolvent Three Arrows Capital (3AC) owed the company 15,250 BTC and 350 million USDC (a total value of about $660 million), the company’s shares fell sharply.

Voyager has given 3AC until Friday (June 24) to pay $25 million and to pay the loan in full by next Monday (June 27) or the loan will be deemed in default. The company also said it was working with lawyers on how to take legal action against 3AC if the venture fund was unable to repay its debts.

Alameda Research provided 200 million USDC revolving loans and 15,000 BTC revolving loans to solve Voyager's current liquidity problems. This week, the company also tightened the 24-hour withdrawal limit from $25,000 to $10,000.

Reddit user AdLongjumping5010 commented on the r/CelciusNetwork subreddit: "$10,000 is better than $0 in Celsius."

Other crypto-related stocks continued to fall. Coinbase stock (COIN) fell 9.71% to $51.91, while shares of Michael Saylor-led MicroStrategy (MSTR) with significant BTC exposure fell 4.50% to $170.91.

Crypto mining stocks also suffered notable losses, with Riot Blockchain (Riot) down 9.63%, Bitfarms (BITF), Hut 8 (HUT), Marathon Digital Holdings (MARA), Core Scientific (CORZ) all down about 5-7%.

The plunge in crypto stock prices is just a microcosm of a broader downtrend in stocks and crypto markets in 2022, with the benchmark S&P 500 entering bear market territory, down 21.6% since the start of the year. It's the first time this has happened since 1970, according to Bloomberg data.

Investors are generally spooked by the Fed's monetary policy and efforts to curb inflation through a series of rate hikes this year.

However, Fed Chairman Jerome Powell has been tight-lipped about how the central bank will respond to inflation in the near term, but he also suggested that the central bank may be preparing for a recession as it continues to drive up borrowing costs.

On June 22, when Powell testified before the Senate Banking Committee, he said in response to a question from Democratic Senator John Tester: "It is certainly a possibility." .”