Controlling The Chaos: Alameda Ventures Bails Out Voyager With $200M & 15K BTC
June 23 2022 - 3:09AM
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Apparently, Voyager Digital is out of the woods. The company ran
into liquidity issues when Three Arrows Capital failed to pay a
huge loan to them. Welcome to another chapter of the crypto death
spiral caused by the Terra/ Luna collapse. Who came to the rescue
this time? Sam Bankman-Fried’s other company, Alameda Ventures. Is
this man bailing out crypto or is he taking total control of the
industry? In a recent press release, Voyager Digital announced that
it “entered into a definitive agreement with Alameda Ventures Ltd.
related to the previously disclosed credit facility, which is
intended to help Voyager meet customer liquidity needs during this
dynamic period.” That’s a way to put it. The company received
“US$200 million cash and USDC revolver and a 15,000 BTC revolver.”
This morning, we announced a definitive agreement with Alameda
Ventures for a $200 million dollar cash / USDC revolver and a
15,000 BTC revolver. Read today’s release: https://t.co/8wPfzcaI6K
— Voyager (@investvoyager) June 22, 2022 As a reminder, yesterday
transpired that FTX, also owned by Bankman-Fried, bailed out
BlockFi with $250M. At the time, we described the situation as
follows: “Over the last few weeks, the crypto market has been
trending down. The contagion effect of the Terra/ Luna extinction
event rocked every company out there, most of all those who offered
yield on cryptocurrency deposits like BlockFi and Celsius and hedge
funds like Three Arrows Capital. These companies’ problems and
possible liquidation of assets, in turn, sent the crypto market
into even more turmoil.” The Voyager case fits right into that
description. Sam Bankman-Fried’s Loan To Voyager, The Conditions
The rumors were already flying. On June 16th, analyst Dylan LeClair
tweeted “Speculation here, but in its quarterly report, Voyager had
loaned $320m to a singapore based entity named “counterparty b”.
One has to wonder whether “counterparty b” was 3AC and if so, how
much of a hit Voyager took?” The answer came quicker than anyone
thought. Speculation here, but in its quarterly report,
Voyager had loaned $320m to a singapore based entity named
"counterparty b". One has to wonder whether "counterparty b" was
3AC and if so, how much of a hit Voyager took? $VOYG shares are
down 33% over the last two days… pic.twitter.com/sCiYskwLEq — Dylan
LeClair 🟠 (@DylanLeClair_) June 16, 2022 In the press release,
Voyager explained the loan: “As previously disclosed, the proceeds
of the credit facility are intended to be used to safeguard
customer assets in light of current market volatility and only if
such use is needed. In addition to this facility, as of June 20,
2022, Voyager has approximately US$152 million cash and owned
crypto assets on hand, as well as approximately US$20 million of
cash that is restricted for the purchase of USDC.” The loan comes
with “certain conditions,” among them: “No more than US$75
million may be drawn down over any rolling 30-day period.” “The
Company’s corporate debt must be limited to approximately 25
percent of customer assets on the platform, less US$500
million.” “Additional sources of funding must be secured
within 12 months.” Voyager Digital price chart on OTC |
Source: TradingView.com It’s All About Three Arrows Capital Right
Now The press release confirms the rumors, the Singapore-based
entity named “counterparty b” was 3AC. “Voyager concurrently
announced that its operating subsidiary, Voyager Digital, LLC, may
issue a notice of default to Three Arrows Capital (“3AC”) for
failure to repay its loan.” In a recent article, our sister site
Bitcoinist broke down the hedge fund’s situation: “The crypto fund
had been directly in the crosshairs of the Luna crash with exposure
of more than $200 million and speculated to be as high as $450
million. At first, the firm had appeared to bounce back from the
Luna collapse but it would be soon obvious that 3AC was in a more
perilous position than investors thought.” The Voyager situation
makes it even more obvious. The company’s “exposure to 3AC consists
of 15,250 BTC and $350 million USDC”. So, the Alameda loan covers
most of it. What did they have to give in return, though? Formally,
“Alameda currently indirectly holds 22,681,260 common shares of
Voyager (“Common Shares”), representing approximately 11.56% of the
outstanding Common and Variable Voting Shares”. If everything goes
well, Voyager has nothing to worry about. But, what if it doesn’t?
Voyager levered 3AC up with 650million of their customers money,
leaving them with only 150million cash reserves. Who tf is in
charge of risk over there, Merrill Lynch? — Tyler (@ApeDurden) June
22, 2022 In any case, for those that like gossip, here’s the story
as narrated by Voyager: “The Company made an initial request for a
repayment of $25 million USDC by June 24, 2022, and subsequently
requested repayment of the entire balance of USDC and BTC by June
27, 2022. Neither of these amounts has been repaid, and failure by
3AC to repay either requested amount by these specified dates will
constitute an event of default. Voyager intends to pursue recovery
from 3AC and is in discussions with the Company’s advisors
regarding the legal remedies available.” Answers And Conclusions
The crypto industry as a whole is in a precarious situation. And
there’s one question at the center of it, is Sam Bankman-Fried
controlling the chaos or is he taking total control of the
industry? Featured Image by Sebastian Herrmann on Unsplash | Charts
by TradingView
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