Three days ago, Bitcoin.com News reported on publicly traded company Voyager Digital after the crypto firm announced it owed $655 million worth of digital assets. Now, according to a Voyager press release, the company has secured funding from Alameda Ventures to increase access to liquidity.
Voyager borrows $500 million from Alameda
Voyager Digital Holdings, Inc. revealed its collaboration with Alameda Ventures, which provided Voyager with a line of credit. The funding is “intended to help Voyager meet the liquidity needs of its clients during this dynamic time,” according to the company. Last week, it was reported that Voyager was in financial distress due to its exposure to Three Arrows Capital (3AC). In a note to investors, Voyager said it owes 15,250BTCand 350 million USDC in BTCand the company has given 3AC a deadline to repay the funds.
Voyager’s TSE-listed shares plummeted after the announcement, losing more than 50% of their value in less than 24 hours. By borrowing from Alameda, Voyager will use the funds to meet the liquidity needs of its clients and enhance its operations during the volatility of the crypto markets.” Voyager has “entered into a definitive agreement with Alameda for US$200 million in cash and USDC revolver and 15,000 BTCrevolver,” Voyager said in a statement. The company added:
As previously disclosed, the proceeds of the line of credit are intended to be used to protect customer assets only when such use is necessary given the current market volatility.
Alameda applies certain financing terms
Meanwhile, the news follows crypto lender Blockfi securing a $250 million line of credit from FTX. After the loan, areport published by the Wall Street Journalclaims that FTX is discussing purchasing a stake in Blockfi; Alameda is providing funds to Voyager, but there are also conditions that Voyager must abide by. For example, “Alameda’s obligation to provide funding is subject to certain conditions, including not to withdraw more than US$75 million during the 30-day rolling period. “38} The Summary of the Loan Agreement further states.
[Voyager’s] corporate obligations must be limited to approximately 25% of client assets on the platform, not to exceed US$500 million, and additional funding sources must be secured within 12 months.
Voyager still intends to pursue assets from 3AC and has discussed “available legal remedies.” In its announcement, Voyager notes that it “is unable to assess at this time the amount recoverable from 3AC. “On June 21, Voyager’s shares listed on the TSX were trading at $1.23 per unit; today, they are trading at $0.58 per unit. Alameda also indirectly owns 22,681,260 common shares of Voyager, representing 11.56% of the outstanding common shares and variable voting shares.
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