Three Arrows Capital's Interest in Deribit Is Only $25 Million

Three Arrows Capital's bankruptcy court filings disclose that its Deribit stake is worth $500 million, or half of its remaining assets. But a person familiar with the matter said the shares were worth just shy of $25 million, not $500 million. The difference is said to be due to the fact that Three Arrows Capital does not own shares in Deribit directly, but rather owns about 70 percent of a Singaporean special purpose vehicle (SPV) called 3AC QCP Deribit SPV, and that 3AC QCP Deribit SPV is estimated to own more than 23 percent of Deribit. The value of SPV shares is significantly lower than Deribit shares due to the multiple heavy ownership burdens placed on SPV shares. In addition, the owners of SPV shares may not sell or transfer the underlying Deribit shares without the unanimous consent of all SPV shareholders.