Solana-based Gaming Star Atlas Reveals It Has Material Exposure on FTX.
As a result of FTX’s collapse, Star Atlas’ cash runway was almost halved, the company’s CEO recently tweeted, Star Atlas is the latest crypto company to suffer from its collapse.
ATMTA Material Cash Exposure in FTX
CEO Michael Wagner said ATMTA, the Star Atlas development studio, has “material cash exposure” at the FTX.
“ ATMTA had material cas exposure on deposit at FTX. This was facility we utilized for cash transfer to our bank to manage operating expenses and to generate “low-risk” yield on short-term treasury assets,” cited the letter.
Star Atlas’ CEO apologized to staff and users, saying FTX betrayed his trust. There was no word on how much the company lost as a result of the FTX collapse.
“ I believed this liquid cash position to be custodied with a reliable and trustworthy institution. I put my confidence and trust into an individual i believed to be a stalwart of the industry. Clearly that trust has been betrayed. Poor timing, and a failure to have sufficient backup measures in place to respond expeditiously to situation such as this resulted in a compromised position. That is on me, and fo that, i am sorry.”
The Next Step
The CEO also shared the firm’s response to the news of potential insolvency at FTX, saying “ we rapidly mobilized an internal strike team to explore options for mid-term cash requirement. As of today, we maintain a strong balance sheet, with significant optionality in front of us, though a portion of our most immediately liquid cash assets were impacted.”
Furthermore, he said that the next step would be to reach out to all available networks in their network to communicate their capital acquisition strategy.
“we have formulated a strategy, prepared presentation materials, will initiate conversations with capital partners as early as this weekend. We are additionally exploring lending facilities, though the likelihood of securing a loan in this environment is low. And finally, we are preparing to make internal structural changes within ATMTA to ensure the continued viability of the Star Atlas vision,” he added.