Weekly Macro Update

Here we are again; We have not entirely played the FTX storyline out. The collapse of FTX has severely affected the crypto market, and some companies have taken a direct hit. This week, we will look at the most notable companies involved.

Genesis

Genesis is an institutional trading desk, and it announced on the 11th of November that it had 175 million dollars of funds on FTX. They also emphasized that this will not impact their market-making activities. The firm also noted that it does not have an ongoing lending relationship with Alameda.

Galaxy Digital

Galaxy Digital is a financial services company, and they revealed they had 76.8 million dollar exposure to FTX. Despite losing this, Galaxy Digital has 1.5 billion dollars in liquidity.

Sequoia Capital

Sequoia Capital is a hedge fund and venture capital firm, and they recently disclosed that their 213 million dollar investment into FTX and FTX US is now worth 0 dollars. They wrote in their letter, "The loss is offset by ~$7.5B in realized and unrealized gains in the same fund, so the fund remains in good shape."

Galois Capital

Galois Capital is a hedge fund that has disclosed that about half its funds were stuck on FTX. The amount is reckoned to be around 100 million dollars, based on the firm's assets under management as of June.

BlockFi

As FTX collapsed, BlockFi had significant exposure to FTX as FTX acquired them. They also rumored that FTX forced BlockFi to send FTX user deposits so that Alameda could use it to trade. BlockFi is currently preparing to file for bankruptcy.

Multicoin Capital

Venture capital firm Multicoin Capital reportedly has around $863 million in assets frozen on FTX. In a letter reported by The Block, the firm highlighted it has 10% of assets under management within its Master Fund that’s stuck on the exchange.

These were the most notable companies to have taken to hit, but the story is not yet done. More companies will disclose their exposure in the coming weeks, months, and maybe years. Once the tide settles, we will see who was swimming naked.

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