Voyager Digital has officially completed it’s auction for acquisition, with powerhouse exchange FTX securing the winning bid, according to emerging reports (and confirmed via press release) in recent hours. Reports in recent weeks had stated that the flagship exchange was in the bidding mix with competitors Binance and CrossTower, with all three supposedly in the final running for Voyager’s assets – and each of which were supposedly offering unique packages in the bidding process.
With FTX coming out on top, let’s take a look at what sort of implications can lie from this acquisition moving forward.
FTX & Acquisitions
FTX has long sought a ‘growth by acquisition’ model with mixed results. The company is working on an acquisition of CeFi Crypto lender BlockFi. It wanted to avoid the fate of competitor Celsius. FTX’s U.S. division is looking to acquire BlockFi, and can now add Voyager Digital to it’s list of new assets to build the FTX rolodex. While the aforementioned Binance and lesser-known exchange CrossTower were reportedly in the mix, it was FTX who came out with the most appetizing bid – despite rumors that Binance’s offer included a large cash sum payment.
Rumors had swirled in recent days around the deal’s closing, with commentators suggesting that FTX would shell out $50M in cash in it’s bid, and that the company desired that existing Voyager customers were moved over the FTX platform – where they could claim a pro rata share of the coins the debtors possess from the existing Voyager accounts. The outcome of this bid is yet to be determined. According to the press release, FTX’s winning bid is valued at roughly $1.4B.
Voyager Digital is traded on OTC markets, TSX. It has witnessed a decline in value that was proportional with its demise.Source: TradingView.com: Voyager Digital (VOYG) | Source: TSX: VOYG on TradingView.com
You can find out where things go from here
The closing of the deal will allow FTX to finalize acquisition of Voyager’s assets, but the timeline around these processes is still murky. Voyager can now still move forward with it’s Chapter 11 filing and look to reconcile debtors and former customers to some degree – but certainly not wholly. Nonetheless, FTX will see all of Voyager’s assets and customer accounts moved under their umbrella.
This move will likely be viewed as a victory for FTX who had submitted a bid for Voyager Digital in July but was unsuccessful.
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