Summary:
Bankrupt crypto exchange FTX has filed a request to the bankruptcy court to hedge its remaining assets and earn yield through various activities. The company aims to enlist Mike Novogratz and Galaxy Digital as its investment adviser to create and preserve value for the FTX estate. A significant amount of funds are currently held in cryptocurrencies, and the company plans to generate yield through derivative trading, hedging arrangements, and staking. The request also includes guidelines that must be approved by the victims of the collapsed exchange, including restrictions and allowances for the investment adviser and weekly limits to sales.
Key Points:
– FTX, a bankrupt crypto exchange, wants to put its remaining assets safe via hedging arrangements or earn yield.
– The company aims to enlist Mike Novogratz and Galaxy Digital as its investment adviser.
– A significant amount of funds are held in cryptocurrencies, and the company plans to generate yield through derivative trading, hedging arrangements, and staking.
– The request includes guidelines that must be approved by the victims of the collapsed exchange.
– These guidelines include restrictions and allowances for the investment adviser and weekly limits to sales.
Hot Take:
FTX’s filing to hedge its remaining assets and enlist Mike Novogratz and Galaxy Digital as its investment adviser shows its efforts to create value and recover funds for stakeholders. By generating yield through various activities, FTX aims to mitigate exposure to adverse price movements and utilize its idle crypto. However, the success of these efforts relies on the approval of the victims of the collapsed exchange and the implementation of the proposed guidelines.
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