Voyager Digital Looks To Secure US$500 Million In Further Capital Amid Crypto Market Turmoil

Voyager Digital (TSX: VOYG) is seemingly concerned with its liquidity situation given the current state of the crypto markets. The firm announced late on Friday that it has sought additional liquidity in light of current market conditions.

This liquidity is to come from Alameda Research via a non-binding term sheet for a revolving line of credit. With an annual interest rate of 5%, the term sheets have a maturity of December 31, 2024, and will see the company receive a facility for cash/USDC, which is a stablecoin, for US$200 million.

Furthermore, a second facility for 15,000 bitcoin is also to be provided by Alameda under the term sheet. At US$20,000 bitcoin, the term sheet is valued at roughly US$300.0 million. The facilities reportedly are to only be used to safeguard client assets.

“Today’s actions give Voyager more flexibility to mitigate current market conditions and strengthen our relationship with one of the industry leaders. Safeguarding customer assets is always our top priority, and ongoing, prudent risk management as well as a strong balance sheet are two ways that we continue to demonstrate that priority,” said CEO Stephen Ehrlich.

Despite putting the facility in place, the company has stated it has more than US$200 million on its balance sheet. For the period ended March 31, the company reported cash and cash equivalents of $99.4 million, along with cash held for customers of $112.4 million.

The signing of the term sheet follows the company last week working to distance itself from Celsius amid the imploding of the crypto service provider.

Separately, Alameda Research filed on Friday that its ownership in Voyager has increased to 11.56%. The firm reportedly purchased US$35.0 million in shares in the company back in late May via a private placement in which it was the lead order.

Definitive documentation for the term sheets is expected to be entered into “in the coming days.”

Voyager Digital last traded at $1.34 on the TSX.


Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

Giant Mining Encounters Native Copper As Hole MHB-34 Hits 563 Metres Depth

Verses Hits Commercialization Stage With Genius AI Platform

Related News

Voyager Digital Looks To Distance Itself From Celsius Amid Crypto Bank Run

Voyager Digital (TSX: VOYG) is looking to distance itself from Celsius following the ongoing implosion...

Tuesday, June 14, 2022, 08:31:48 AM

Voyager Digital Estimates US$165 Million In Revenue For Q2 2022

Voyager Digital Ltd. (TSX: VOYG) reported today its preliminary revenue and user metrics for fiscal...

Wednesday, January 5, 2022, 10:58:00 AM

Binance Deal To Buy Voyager Faces Looming Threat Of US National Security Review

Binance’s plans to acquire what remains of the bankrupt crypto lender Voyager Digital could be...

Wednesday, January 4, 2023, 05:10:00 PM

Voyager Digital Halts Deposits, Withdrawals On Platform Following 3AC Loan Default

It appears that the end of Voyager Digital (TSX: VOYG) is upon us. The crypto...

Friday, July 1, 2022, 04:57:36 PM

Voyager Digital Reports At Least 36% Revenue Decline In Q3 Based On Preliminary Results

Voyager Digital (TSX: VOYG) appears to be having a rough start to 2022. After announcing...

Thursday, April 7, 2022, 08:24:36 AM