Crypto Firm Voyager Digital Provides $500M Line Of Credit From Alameda Ventures To Cope With 3AC Exposure – Bitcoin News

Three days ago, Bitcoin.com News reported on publicly traded company Voyager Digital after the crypto firm announced it owed $655 million in digital assets. According to a press release from Voyager, the company has secured funding from Alameda Ventures to provide greater access to liquidity.

Voyager Borrows $500 Million From Alameda

Voyager Digital Holdings, Inc. has announced a collaboration with Alameda Ventures to provide a line of credit to venture firm Voyager. The funds are “aimed to help Voyager meet client liquidity needs during this dynamic period.” Last week, reports indicated that Voyager was in financial trouble due to exposure with Three Arrows Capital (3AC). Voyager said it owes investors 15,250 BTC and 350 million USDC, and has given 3AC a deadline for the company to repay the funds.

Voyager’s shares on the TSX listing plunged more than 50% in less than 24 hours after the announcement. Borrowing from Alameda, Voyager will use the funds to meet client liquidity demands and strengthen operations during crypto market volatility. “[Voyager] Voyager has signed a definitive agreement with Alameda for $200 million in cash and USDC pistols and 15,000 BTC pistols. The company added:

As previously disclosed, proceeds from the loan facility are intended to be used to protect client assets in light of current market volatility and only when such use is needed.

Alameda Applies Certain Loan Terms

Meanwhile, news follows cryptocurrency lender Blockfi securing a $250 million line of credit from FTX. A report by the Wall Street Journal after the loan claims that FTX is discussing buying a stake in Blockfi. When Alameda Voyager offers funds, there are certain conditions Voyager must meet. For example, “Alameda’s obligation to provide financing is subject to certain conditions, including: No more than $75 million may be withdrawn in any 30-day cycle.” The loan agreement summary also adds:

[Voyager’s] corporate debt should be limited to approximately 25 percent of client assets on the platform, minus $500 million; and additional sources of funding must be secured within 12 months.

Voyager still plans to track 3AC’s assets and discuss “existing legal solutions”. The announcement states that Voyager “could not assess the amount it can recover from 3AC at this point.” On June 21, Voyager shares listed on TSX were trading at $1.23 per unit, and today the stock is changing hands at $0.58 per unit. In addition, Alameda indirectly owns 22,681,260 common shares of Voyager, which is equal to 11.56% of outstanding ordinary and floating voting shares.

Tags in this story

$500M, $655M loan, 3AC, 3AC loan default, alameda, Alameda Ventures, Bitcoin (BTC), Blockfi, Line of Credit, Crypto, Cryptocurrency, defaulters, Digital Assets, ftx, loan, loan default, loans , Exchange, Three Arrows Capital, TSX listed, usd coin(USDC), voyager, VOYG-T, VOYG-T stock

What do you think about Voyager getting a line of credit from Alameda? Let us know what you think about it in the comments section below.

Jamie Redman

Jamie Redman is a News Editor at Bitcoin.com News and a financial technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols that emerged today.




Image Credit: Shutterstock, Pixabay, Wiki Commons

disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of a buy or sell offer or recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is liable, directly or indirectly, for any damage or loss allegedly caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.

Leave a Comment

Your email address will not be published.