Crypto broker goes bankrupt, Bitcoin miner capitulates and China’s VC financing skyrockets

by James · July 8, 2022

Those of us who are eagerly awaiting a summer relief rally for Bitcoin (BTC) may have to wait a while longer. The bear market still cleanses us of our profits – and reveals the most toxic players in our industry. I’ve talked to you about Terra (LUNA) – now renamed Terra Classic (LUNC) – Celsius, Three Arrows Capital, BlockFi – What about Voyager Digital? The crypto broker filed for Chapter 11 bankruptcy this week, putting hundreds of thousands of creditors on high alert.

This week’s Crypto Biz newsletter dissects Voyager’s bankruptcy proceedings and offers some potentially good news regarding Celsius. We are also looking at the latest high-profile miner to force-sell Bitcoin and chronicle new capital raising for one of China’s most prominent venture firms.

Table of Contents

Celsius has been paying down 143 million in DAI loans since 1 July

Celsius appears to be approaching repayment of outstanding debt to the Maker (MKR) protocol after the lender posted $ 142.8 million worth of Dai (DAI) stack coins over a four-day period. Celsius repaid another $ 34.4 million in DAI on July 5, effectively increasing the collateral ratio and significantly reducing the liquidation price to less than $ 3,000 worth of Bitcoin (BTC). In other words, the price of Bitcoin must now fall below $ 3000 for Celsius to default on the loan. Although some observers took the news as a cautious optimism that Celsius is heading in the right direction, the company has not released any new updates in several weeks, and user withdrawals are still frozen from 13 June.

Voyager Digital Files for Chapter 11 Bankruptcy, Proposes Recovery Plan

Another bit in the dust: Crypto broker Voyager Digital filed for Chapter 11 bankruptcy in the Southern District Court of New York just days after the company stopped all trading activity. Voyager’s bankruptcy notice stated that the company owed more than 100,000 creditors ranging from $ 1 billion and $ 10 billion in assets. If you are a Voyager account holder, it could be anything: The company is filing for bankruptcy as part of a “reorganization” plan that will eventually pave the way for clients to access their accounts. Infection in the crypto market is a real thing – and it may not be over yet.

As part of this process, the proposed reorganization plan will resume account access and return value to customers. Under this plan, which is subject to change given ongoing discussions with other parties, and requires the approval of the court:

– Stephen Ehrlich (@ Ehrls15) July 6, 2022

Core Scientific sold $ 167 million worth of Bitcoin holdings in June

Miner capitulation is upon us. Earlier this week, US crypto mining company Core Scientific revealed that it was forced to sell more than 7,000 BTC in June to pay for current business expenses. The digital gold was relieved at an average price of $ 23,000, around 67% lower than Bitcoin’s all-time high from November last year. The good news is that the sale of miners is often seen as a reliable indicator on the bottom. But fewer investors are willing to call the bottom as the Federal Reserve plans more more aggressive rate hikes this year.

JUNE 2022 HIGHLIGHTS:
-1,106 #Bitcoin self-extracted,
-10.3 EH / s self-mined
– + 180,000 ASIC servers in operation
-7.6 EH / s co-location (hosting)
-Daily self-recovery increased by 14% from June 1 (34.8) to June 30 (39.8) https://t.co/KeypwtMEfr

– Core Scientific (@Core_Scientific) July 5, 2022

Crypto investor Sequoia Capital China is reportedly raising $ 9 billion

In the depths of the crypto winter, at least one venture capital firm continues to grow its war chest. Sequoia Capital China, the Chinese subsidiary of the cryptocurrency-focused venture firm Sequoia Capital, is reportedly raising $ 9 billion for four start-up funds. Although the details are still sparse, it was reported that 50% of the increase was oversubscribed. It remains to be seen how the funds will be distributed, but given that Sequoia China has already supported blockchain games such as Babel Finance and DeBank, we can expect blockchain and crypto startups to be well represented.

Do not miss it! What is the current state of the crypto market?

Does the bear market affect your psyche? How long is it until we reach the bottom, or do we already have? In this week’s market report, I sat down with other analysts Jordan Finneseth, Yashu Gola and Benton Yaun to discuss the current state of the crypto market and why July will be a key month for risk assets. You can see the full replay below.