Categories: Payment system news

Voyager Digital Secures a $500M Credit Facility Loan From Alameda Following 3AC Fiasco

Citing the need to meet customer liquidity requirements in these challenging times, the US-based crypto platform said it had secured the loan in the form of a credit facility just a day after FTX provided the same type of a loan to BlockFi.

  • The company’s statement informed of the size of the loan, which is for $200 million cash and USDC revolver, and a 15,000 BTC revolver. This makes the total amount around $500 million since the 15K BTC is valued at around $300 million as of now.
  • Voyager intends to use the fresh funds to “safeguard customer assets in light of current market volatility and only if such use is needed.” As of June 20, the firm had approximately $152 million in cash and owned crypto assets, as well as $20 million of cash restricted for the purchase of USDC.
  • The statement further explained that the loan comes due to Voyager’s exposure (350 million USDC and 15,250 BTC – over $650 million in total) to the struggling crypto-focused VC – Three Arrows Capital (3AC).
  • Voyager said it had requested repayment of $25 million in USDC by June 24 and the entire balance of USDC and BTC by June 27. However, “neither of these amounts has been repaid, and failure by 3AC to repay either requested amount by these specified dates will constitute an event of default.”

“Voyager intends to pursue recovery from 3AC and is in discussions with the company’s advisors regarding the legal remedies available. The company is unable to assess at this point the amount it will be able to recover from 3AC.”

  • This development comes just a day after BlockFi said it had secured a $250 million credit facility from the SBF-spearheaded FTX exchange.
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