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.
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“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.
