Reported CoinDesk, Bankrupt crypto exchange FTX wants to start selling, staking and hedging its sizable crypto holdings – and is seeking to hire Mike Novogratz’s Galaxy as an advisor to help, according to court filings made late Wednesday evening.
FTX hopes careful trading can avoid denting the value of over $3 billion in crypto holdings.
“Hedging bitcoin and ether will allow the Debtors [FTX] to limit potential downside risk prior to the sale of such bitcoin or ether,” the filing by FTX lawyers said. “Staking certain digital assets… will inure to the benefit of the estates — and, ultimately, creditors — by generating low risk returns on their otherwise idle digital assets.
FTX is hoping interest on its crypto holding will add to the stock it can distribute to customers who are still waiting for their money back.
The company, now run by restructuring expert John J. Ray III, worries that selling all in one go would cause the price to plummet, to the benefit of short sellers and other market participants. It’s turning to market experts to figure out how best to avoid that, for example via weekly sales limits.
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