By Adriano Marchese
Embattled cryptocurrency platform Voyager Digital Ltd. said Wednesday that its subsidiary has signed an agreement with trading firm Alameda Ventures Ltd. for a $200 million loan to safeguard its customers' assets from a crypto market-wide liquidity crisis.
Voyager Digital said its subsidiary, Voyager Digital Holdings Inc., agreed to the $200 million cash and USDC revolver--a U.S. dollar-pegged stablecoin--and a 15,000 bitcoin revolver.
Almeda currently owns around 11.56% of Voyager shares.
Voyager has had a rough go in recent months as the entire cryptocurrency market continues to face volatility.
Since the beginning of the year, Voyager shares have been down nearly 90% to C$1.60, in step with other peers in the crypto-exchange space while the price of Bitcoin has also taken a hit, falling 57% to US$20,527.70 year-to-date.
The company said its operating subsidiary Voyager Digital LLC, may issue a notice of default to hedge fund Three Arrows Capital, or 3AC, to which its exposure consists of 15,250 BTC and $350 million USDC. Voyager has requested a payment of $25 million USDC by June 24 and subsequently requested repayment of the entire balance of USDC and BTC by June 27.
3AC has failed to make repayments owed to Voyager. 3AC has only a few days to meet its repayments to Voyager before they constitute an event of default. The company said it intends to pursue recovery from 3AC but cautioned that it doesn't know how much it will be able to recover.
Voyager said the new money is intended to be used to safeguard its customer assets "in light of current market volatility and only if such use is needed."
Voyager said it also has around $152 million in cash and owned crypto assets on hand, as well as around $20 million of cash that is restricted for the purchase of USDC.
Write to Adriano Marchese at firstname.lastname@example.org
(END) Dow Jones Newswires