FTX had filed a petition with the United States Bankruptcy Court for the District of Delaware, requesting authorization to sell, stake, and hedge its crypto holdings in order to repay creditors.
FTX, the crypto exchange grappling with Chapter 11 proceedings, has submitted a revised order to the bankruptcy court outlining plans for the sale and transfer of its significant digital asset holdings.
The proposal establishes a structured process for investment advisors to liquidate portions of FTX’s cryptocurrency stash under creditor supervision. Sales of assets like Bitcoin and Ethereum would initially be capped at $50 million weekly, later increasing to $100 million.
Stricter controls are in place for unidentified “insider-affiliated” digital tokens, requiring 10 days' notice to creditors and the U.S. Trustee before sale. Such sales may be blocked if objections arise. Additionally, FTX seeks approval to enter into cryptocurrency hedging contracts using an approved investment advisor, limited to Bitcoin and Ethereum without creditor consent.
FTX is obligated to provide detailed biweekly and monthly reports on asset transactions, balances, staking yields, and market insights to both creditors and regulators. Transparency will be further facilitated through status calls between FTX, advisors, and creditors. The proposed sales aim to inject crucial capital into FTX, allowing the company to repay its creditors and customers.
Recent reports shed light on FTX’s diverse asset portfolio, spanning various cryptocurrencies, real estate, and securities. The exchange holds over $3.4 billion in digital assets, with substantial positions in Solana ($1.16 billion) and Bitcoin ($560 million).
Additional holdings include lesser-known tokens that don't meet liquidity thresholds, a venture investment portfolio of approximately $4.5 billion, and significant investments in luxury Bahamas real estate and Grayscale’s crypto products.
Solana (SOL) is trading at $18.11 today, with a 24-hour trading volume of $364,977,420.11. This indicates a 1.40% gain in the previous 24 hours and a -7.20% decrease in the last seven days. Solana has a market valuation of $7,452,202,928 and a circulating supply of 410 million SOL.
The Solana coin price has increased in response to the Bitcoin price rising from the $25,000 support level on the daily time frame chart. This price has risen 2% in the last two days and is now trading at $18.06.
Nonetheless, this rise is being overshadowed by a larger falling-wedge pattern that has characterised SOL price moves during the last two months. This technical pattern frequently indicates a potential upward breakout from the top trendline, providing potential investors with an entry point.
If this breakout occurs, the immediate objective for Solana is $22.21, followed by $25.40.
Sam Bankman-Fried's crypto empire, now under new leadership, is striving to bolster revenue through an expanded algorithmic trading business. With over $1.2 billion in cash reserves, the bankruptcy court will evaluate the proposed sale guidelines and make a decision. While liquidating a portion of these assets could aid FTX's financial recovery, it still faces a complex restructuring process amidst ongoing mediation between creditors and stakeholders.