Crypto Firm Voyager Digital Secures a $500M Line of Credit From Alameda Ventures to Cope With 3AC Exposure – Bitcoin News

Bitcoin.com News published a report on Voyager Digital, a publicly traded company. The crypto company had announced it owed $655 Million in digital assets. According to Voyager’s press release, funds have been secured from Alameda Ventures to increase liquidity.

Voyager Borrows $500 million from Alameda

Voyager Digital Holdings, Inc. revealed that it has partnered with Alameda Ventures to provide Voyager a line credit. The funds are “intended to help Voyager meet customer liquidity needs during this dynamic period.” Last week, reports noted that Voyager was suffering through financial hardship due to its exposure with Three Arrows Capital (3AC). Voyager stated in an investor note that it owes 350 million USDC as well as 15,250 BTC. 3AC was given a deadline for repayment.

Voyager’s TSX-listed stock plummeted after the announcement losing more than 50% in value in less than 24 hours. Voyager has borrowed funds from Alameda and will be able to use these funds for customer liquidity requirements as well as strengthening operations during volatility in the crypto markets. “[Voyager] entered into a definitive agreement with Alameda for a US$200 million cash and USDC revolver and a 15,000 BTC revolver,” Voyager said in a statement. Further details were provided by the company:

As stated previously, proceeds from credit facilities are meant to be used for customer asset protection in the face of market volatility. However, such use will only occur if necessary.

Alameda has a few loan conditions

This news is in the wake of Blockfi, a cryptocurrency lender, securing a line credit of $250 million from FTX. According to a Wall Street Journal report, FTX may be considering buying a share in Blockfi after the loan was approved. Voyager has to adhere to certain conditions, even though Alameda offers funds for Voyager. For instance, “Alameda’s obligation to provide funding is subject to certain conditions, including: no more than US$75 million may be drawn down over any rolling 30-day period.” The loan agreement summary further adds:

[Voyager’s]Corporate debt should not exceed 25% of the customer assets, or less than US 500 million. Additional funding sources must also be available within twelve months.

Voyager still intends to pursue assets from 3AC and has been discussing the “legal remedies available.” The announcement notes that Voyager is “unable to assess at this point the amount it will be able to recover from 3AC.” On June 21, Voyager’s shares listed on TSX were trading for $1.23 per unit, and today, the stock is exchanging hands for $0.58 per unit. Alameda indirect holds 22681,260 Voyager shares. This is equivalent to 11.56 percent of all outstanding variable and common voting share.

How do you feel about Voyager getting a credit line from Alameda. Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for Bitcoin.com News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been an active member ever since. Redman is passionate about Bitcoin and open-source codes. Redman is a prolific writer for Bitcoin.com News, with over 5,000 articles on disruptive protocols.