FTX Debt Investment Valuation Currently Approaches 80% of Face Value

Before the assessment hearing on January 25th, the trading prices of FTX's debt tokens in the cryptocurrency exchange had already increased, with creditors anticipating a ruling favorable to their claims for repayment in cryptocurrency “in-kind.”

Cherokee Acquisition, an investment bank specializing in bankruptcy claims and providing liquidity for FTX's debt tokens, indicated that the valuation of FTX debt investments (as a percentage of the face value) is currently approaching 80%.

Claims Market, an X account managed by a claims company, mentioned that as the expected court hearing on January 25th approaches, FTX will seek approval for its cryptocurrency price list, and debt token prices are expected to continue rising. Previously, FTX proposed a scheme to repay creditors based on the cryptocurrency prices on the day of bankruptcy. However, FTX creditors are still determined to accept “in-kind” payments, considering only the quantity of tokens lost, not market prices.

In earlier reports, FTX's subsidiary, Alameda Research, withdrew its lawsuit against Grayscale. Insiders revealed that FTX has sold off 22 million Grayscale GBTC shares, with a significant portion being capital outflow, totaling nearly $1 billion. Currently, FTX's GBTC holdings have dropped to zero. Analysts believe that, theoretically, FTX has completed the sale of GBTC, and subsequent market selling pressure may alleviate, as bankruptcy liquidation is a relatively unique event.