Alameda Bails Out Voyager Digital on Information of 3AC Publicity

Key Takeaways

  • Crypto change Voyager was uncovered to Three Arrows Capital to the tune of $667 million.
  • The corporate has already secured a mortgage from Alameda Analysis with a purpose to be certain that Voyager clients won’t be impacted by 3AC’s meltdown.
  • The information despatched Voyager’s inventory down 63% on the day.

Voyager Digital has been revealed to have had $667 million in publicity to Three Arrows Capital; the corporate has secured a mortgage from Alameda Analysis to make sure its clients won’t be impacted by the hedge agency wipeout.

Voyager’s Publicity to 3AC

Crypto change Voyager introduced immediately that it was closely uncovered to Three Arrows Capital.

In line with the corporate’s press launch, Voyager’s publicity to the crypto hedge fund consists of 15,250 BTC and $350 million USDC, for a complete of roughly $667 million. Voyager has requested Three Arrows Capital to repay $25 million by June 24 and the remainder of their excellent steadiness by June 27; failure to finish reimbursement by these deadlines will likely be interpreted as “an occasion of default.”

Voyager’s inventory (VOYG) plummeted following the information and is now at -63% on the every day, opening at $1.30 and at present buying and selling at $0.59.

Three Arrows Capital (3AC) was one of many prime crypto hedge funds on the planet. Its co-founders, Su Zhu and Kyle Davies, turned infamous within the crypto house for pushing the “supercycle” thesis, arguing that Bitcoin would not expertise -80% drawdowns. They acknowledged final week that the hedge fund had been worn out by latest market volatility.

Alameda Swoops In

In the identical press launch, Voyager detailed an settlement it had entered with crypto buying and selling agency Alameda Analysis with a purpose to “meet buyer liquidity wants.”

Alameda will mortgage $200 million (money and USDC) and 15,000 BTC to Voyager with a purpose to make sure the crypto change’s solvency. Voyager itself at present has about $172 million in liquid belongings. Voyager clients ought to subsequently not be impacted by the corporate’s publicity to Three Arrows Capital.

Alameda additionally not directly holds 22,681,260 Voyager widespread shares (about 11.56% of the corporate), which it had purchased at $2.34 in Could.

Voyager shouldn’t be the primary crypto firm Alameda founder Sam Bankman-Fried has bailed out. His crypto change, FTX, additionally provided a $250 million credit score to crypto lender BlockFi yesterday.

Disclosure: On the time of writing, the writer of this piece owned ETH and a number of other different cryptocurrencies.

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