Alameda rescues Voyager Digital after information of 3AC publicity

Alameda rescues Voyager Digital after information of 3AC publicity

key takeaways

  • Voyager crypto trade was uncovered to Three Arrows Capital to the tune of $667 million.
  • The corporate has already secured a mortgage from Alameda Analysis to make sure that Voyager clients will not be affected by the 3AC collapse.
  • The information despatched shares of Voyager down 63% on the day.

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Voyager Digital has been revealed to have had a $667 million publicity to Three Arrows Capital; the corporate took out a mortgage from Alameda Analysis to make sure its shoppers will not be affected by the hedge agency’s liquidation.

Voyager publicity to 3AC

Crypto trade Voyager introduced as we speak that it was closely uncovered to Three Arrows Capital.

Based on the corporate Press launchVoyager’s publicity to the crypto hedge fund consists of 15,250 BTC and $350 million USDC, totaling roughly $667 million. Voyager has requested Three Arrows Capital to pay $25 million by June 24 and the rest of its excellent steadiness by June 27; failure to finish fee inside these timeframes will probably be construed as “an occasion of default.”

Voyager (VOYG) shares tumbled after the information and are actually down -63% on the day, opening at $1.30 and at the moment buying and selling at $0.59.

Three Arrows Capital (3AC) was one of many world’s main cryptocurrency hedge funds. Its co-founders, Su Zhu and Kyle Davies, grew to become infamous within the crypto house for selling the “supercycle” thesis, arguing that Bitcoin would not expertise -80% drawdowns. They admitted final week that the hedge fund had been eradicated as a result of current market volatility.

Alameda pounces

In the identical press launch, Voyager detailed a deal it had signed with crypto buying and selling agency Alameda Analysis to “meet shopper liquidity wants.”

Alameda will lend $200M (in money and USDC) and 15,000 BTC to Voyager to make sure the solvency of the crypto trade. Voyager itself at the moment has about $172 million in liquid belongings. Due to this fact, Voyager’s shoppers shouldn’t be affected by the agency’s publicity to Three Arrows Capital.

Alameda additionally not directly owns 22,681,260 Voyager frequent shares (about 11.56% of the corporate), which he had bought for $2.34 in Might.

Voyager will not be the primary crypto agency Alameda founder Sam Bankman-Fried has bailed out. His crypto trade, FTX, too supplied a $250 million credit score to crypto lender BlockFi yesterday.

Disclosure: On the time of writing, the writer of this text owned ETH and several other different cryptocurrencies.

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