Massive FTX cryptocurrency sale, cash reserves double to $4.4 billion in 3 months

FTX’s restructuring team has been actively raising funds to repay creditors since its collapse in November 2022. Currently, they are selling crypto assets for cash. According to previously disclosed documents, FTX is estimated to have more than 1 million creditors, and its debt to the top 50 creditors is as high as $3.1 billion.

According to the latest monthly operating report, as of the end of last year, FTX Trading Ltd. and its four largest subsidiaries, including Alameda Research LLC, West Realm Shires Inc. and Clifton Bay Investments LLC, had total cash Reserves nearly doubled, from about $2.3 billion to $4.4 billion. If other FTX subsidiaries are considered, the total cash reserves may be higher. This data shows that FTX has achieved significant financial growth over the past few months, laying a solid foundation for its future growth. This also reflects FTX’s strong performance in the cryptocurrency market and its growing user base’s trust and support for its platform.

Changes in cash reserves of FTX’s four largest subsidiaries

According to FTX’s disclosure in a court filing, as of December 8 last year, FTX raised $1.8 billion by selling some of the company’s digital assets. In addition, FTX is conducting Bitcoin derivatives trading to hedge the risk of Bitcoin and obtain additional income from the digital asset. At the same time, FTX is also considering options to relaunch the trading platform.

After GBTC was transformed into a Bitcoin spot ETF, as the negative premium of GBTC gradually decreased, many investors began to take profits. According to reports, FTX also sold approximately 22 million GBTC shares, worth nearly $1 billion, almost wiping out its GBTC holdings.

The expected compensation ratio soars

Despite FTX’s growing cash reserves, the expected compensation ratio for customer claims is also rising. Cherokee Acquisition, the investment firm responsible for handling bankruptcy claims and providing liquidity for FTX claims, said that as of Friday, claims with claims exceeding $1 million had traded at 73% of face value, up from 38% in October last year. %.

Cherokee Acquisition points out that the actual transaction price of a claim depends on the value of the specific claim and other factors.

FTX submitted a revised reorganization application to the court on the 26th of last month, hoping to estimate the amount of customers’ crypto-asset claims based on US dollars, and seeking to estimate the asset value on November 11, 2022, the date of bankruptcy. On the day of bankruptcy, BTC reported $16,871, ETH reported $1,258, SOL reported $16, and AVAX reported $14, all of which were significantly different from the current prices.

This immediately triggered a rebound from creditors, because customers will not be repaid in full. FTX creditor Sunil Kavuri pointed out earlier this week that there have been as many as 153 letters of objection from creditors around the world. The current goal of creditors is It seeks to establish an "in-kind" repayment structure, whereby claims are based on the number of tokens rather than market price, but the judge has not yet made a ruling.

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