Voyager Digital (TSX: VOYG) (OTCQX: VYGVF) has issued a statement updating on challenges regarding digital asset markets and a previously announced credit facility from Alameda Ventures.
Alameda indirectly holds 22,681,260 common shares of Voyager representing about 11.56% of the outstanding common and variable voting shares. Alameda is a trading firm is owned by FTX founder and CEO Sam Bankman-Fried.
Last week, Voyager entered into an agreement with Alameda for a $200 million cash and USDC revolver along with a 15,000 BTC revolver. The proceeds are intended to be used to backstop customer assets in light of current market volatility. As of June 20, 2022, Voyager has approximately US$152 million in cash and owned crypto assets on hand, as well as approximately US$20 million of cash that is restricted for the purchase of USDC, according to the company.
Voyager has been impacted by Three Arrows Capital, a crypto hedge fund that has halted operations with questions regarding its viability. Voyager said it may issue a notice of default to Three Arrows as it has failed to repay a loan. The exposure is placed at 15,250 Bitcoin (~$308 million) and $350 million (USDC) for over $650 million in exposure.
Voyager said it made an initial request for a repayment of $25 million USDC by June 24, 2022, and subsequently requested repayment of the entire balance of USDC and BTC by June 27, 2022. So far nothing has been paid and Voyager said if Three Arrows does not cough up the money it will consider the loan in default.
Shares in Voyager sank on the news losing about half their value today having started the year trading on Toronto at over CDN $14 to around CDN $0.80 today representing an expectation that Voyager could file for bankruptcy. Currently, Voyager’s market cap is hovering around CDN $150 million – a spectacular loss in value.
Earlier this week, Bankman-Fried also provided a loan to BlockFi to help the crypto investment platform buttress its balance sheet as crypto investors unwind positions as valuations have spiraled creating a domino effect. Bankman-Fried has emerged as a bit of a crypto Fed – the lender of last resort for beleaguered digital asset trading and investing firms.