Voyager Digital Fundsowner of a crypto platform, today announced that it has entered into a multi-million line of credit agreement with Alameda Venturesbut also that they can issue a notice of default to the leading crypto hedge fund Capital of the Three Arrows (3AC) for failure to repay its loan.
Alameda Ventures is a venture capital subsidiary of Alameda Searcha quantitative trading company and the parent company of the FTX Exchange, whose CEO, Sam Bankman-Fried, has been in the news for the past few days due to his view that big crypto firms have a responsibility to help out during a crisis in the crypto market.
According to Voyager’s announcement,
The company “has entered into a definitive agreement with Alameda for a $200 million revolver in cash and USDC and a $15,000 ($304 million) BTC revolver.”
This confirms the agreement announced today. It complements FTX providing the crypto lender BlockFi, which could suffer from problems related to 3AC and its possible insolvency, a “$250 million revolving credit facility”. Typically, revolving credit facility agreements involve an investor providing funds that can be drawn down if and when needed.
Voyager said that, as previously stated, the company intends to use proceeds from the credit facility “to protect customer assets in light of current market volatility and only if such use is necessary.” , adding:
“In addition to this facility, as of June 20, 2022, Voyager has approximately $152 million in cash and crypto assets, as well as approximately $20 million in cash that is reserved for the purchase of USDC. “
Alameda currently indirectly owns an 11.56% interest in Voyager.
That’s not all Voyager had to share, as they said the operating subsidiary, Voyager Digital, LLC, can put 3AC on notice for non-reimbursement of its loan. The company’s exposure to 3AC consists of 15,250 BTC and 350 million USDC.
Shares of Voyager Digital fell after the news:
According to Voyager, they made an initial request for a refund of 25 million USDC by June 24, then later requested a refund of the entire balance of USDC and BTC by June 27 – of which none have so far been refunded, they said. Failure by 3AC to repay such amounts by the specified dates “will constitute an event of default,” the company said, adding:
“Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors regarding available legal remedies. The Company is unable to assess at this stage the amount it will be able to recover. from 3AC.
Cryptonews.com has contacted 3AC for comment.
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(Update 14:33 UTC: A chart with Voyager Digital stock price has been added.)