Mining crypto

Skybridge halts withdrawals on funds exposed to private stocks and crypto – Ledger Insights

One of Anthony Scaramucci’s Skybridge Capital funds has suspended redemptions as private company stocks have become more illiquid. Sources told Bloomberg that the Legion Strategies fund now holds about 20% of its portfolio in private stocks, including crypto exchange FTX, and another 10% in cryptocurrencies. However, while these private stocks are all part of Skybridge’s portfolio, a large portion will also be tied to digital assets.

Skybridge acts as a fund of funds and owns several cryptocurrency funds, including Bitcoin and Ethereum, which are part of the Legion Strategies crypto exhibits.

Skybridge’s website lists a dozen private equity investments, but it’s unclear if all of these are included in the Legion Strategies fund. Of the twelve private companies, ten are related to crypto. Exceptions are Plaid and Klarna which recently completed funding at a valuation of $6.5 billion from a previous round of $45.6 billion.

Along with investments in FTX and FTX.US, bitcoin mining firm Genesis Digital Assets is part of the portfolio, as are bitcoin asset manager NYDIG and exchange Kraken.

Regulators pointed to minimal fallout from the crypto crash, but that could be limited.

It also remains to be seen what happens with Equities First, the asset-backed lender that was previously primarily involved in equities but now has considerable exposure to crypto. While the company claims to have returned $343 million to bankrupt crypto lender Celsius, it still owes Celsius $439 million. Celsius originally borrowed money from Equities First, which was unable to return the crypto collateral in mid-2021. Additionally, Equities First owes $162 million to bankrupt hedge fund Three Arrows Capital with only $91 million warranty.

Meanwhile, FTX has partnered with Skybridge’s SALT event to kick off the Crypto Bahamas conference in April 2022.

The amount invested in the Legion Strategies fund was $228 million and there are only 22 accredited investors. The last updated asset valuation figure was $421 million as of April 2021.