Multicoin Capital Has A Stake In FTX Worth $25 Million
According to a letter obtained by The Block, Multicoin Capital, a top-tier crypto venture capital firm, has revealed its more than $25 million stake in FTX through its $430 million venture fund.
Based on the correspondence, the crypto venture capital firm’s third venture fund invested $25 million in FTX US, representing 5.8% of the fund. In July, Multicoin announced the $430 million fund. The founders, Kyle Samani and Tushar Jain, were the fund’s largest LPs, along with other anonymous institutional backers.
“This position will be evaluated at the end of Q4 in accordance with VF3’s valuation policy, at which time we will determine if a markdown is appropriate,”the letter said, referring to the venture fund.
In addition to the $25 million investment in FTX US, the venture fund held about $2 million in FTX International. It stated that it held these funds because some of its investments were funded by sending USDC over the exchange’s crypto rails rather than via USD wire.
The letter mentions Binance‘s ongoing acquisition, implying that it was written before the deal fell through last Wednesday. At the time, the firm stated that they expected to recoup the entire position. “The situation remains fluid, and there is still a possibility that the transaction will not close. In that case, we may not receive a full recovery of the USD held at FTX International, and recovery would most likely be delayed further.” the letter stated. Despite this, the letter reiterated that the company is “well-capitalized.”
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