Voyager Digital Secures Credit Line from Alameda, May Send Three Arrows a Notice of Default
Voyager Digital Holdings, an owner of a crypto platform, announced today that they entered into a multi-million credit line agreement with Alameda Ventures, but also that they may issue a notice of default to major crypto hedge fund Three Arrows Capital (3AC) for failure to repay its loan.
Alameda Ventures is a venture capital arm of Alameda Research, a quantitative trading firm and the parent company of the FTX exchange, the CEO of which, Sam Bankman-Fried has been making news over the past several days due to his opinion that the large crypto firms have a responsibility to help out in the time of the crypto market crisis.
Per Voyager’s announcement,
The company “entered into a definitive agreement with Alameda for a USD 200 million cash and USDC revolver and a BTC 15,000 (USD 304m) revolver.”
This confirms the deal reported today. It comes in addition to FTX providing the crypto lender BlockFi, which could be suffering from issues surrounding the 3AC and its possible insolvency, a “USD 250 million revolving credit facility” package. Typically, revolving credit facility arrangements involve an investor providing funds that can be drawn upon if and when they are needed.
Voyager stated that, as previously disclosed, the company intends to use the proceeds of the credit facility “to safeguard customer assets in light of current market volatility and only if such use is needed,” adding:
“In addition to this facility, as of June 20, 2022, Voyager has approximately USD 152 million cash and owned crypto assets on hand, as well as approximately USD 20 million of cash that is restricted for the purchase of USDC.”
Alameda currently indirectly holds an 11.56% stake in Voyager.
That’s not all Voyager had to share, as they stated that the
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