Friday, October 7, 2022

Voyager Digital Receives Credit Line from Alameda Ventures

In the wake of the massive selloff that has hit the crypto market recently, crypto brokerage firm Voyager Digital has disclosed that it has signed a multi-million dollar credit line agreement with Alameda Ventures.

According to the firm, this credit agreement which covers cash of $200 million dollars and USDC revolver, and a 15,000 Bitcoins (BTC) revolver would act as a liquidity cushion during this period of market turbulence.

Voyager Digital however said that it owns a combined cash and crypto assets worth $152 million. It also has a cash stack of US$20 million which is reserved solely for purchasing USDC. The firm also mentioned that this credit line is to serve as a buffer in event of excessive liquidation. Therefore, it would only be used when needed.

Knowing that a revolving credit arrangement comes with certain terms, Alameda now indirectly owns a stake of about 11.56% in the firm. It is also worth knowing that Sam Bankman-Fried, who is the CEO of FTX, a cryptocurrency exchange, and Alameda Research, has been vocal about the role big crypto firms should play during a market crisis such as this.

Bankman-Fried holds the opinion that during periods of a market downturn, thriving crypto firms have a responsibility of supporting firms in distress.

Voyager Digital also disclosed concurrently that it may be left with no choice but to issue a notice of default to embattled Three Arrows Capital (3AC). According to the statement, 3AC has failed to repay a loan of 15,250 BTC and $350 million USDC which it received from her.

In its report, Voyager Digital said that it gave 3AC till June 24, 2022, to clear out the sum of $25 million USDC and June 27, 2022, to make the final repayment on both the USDC and BTC loans. But as both dates approach, Voyager Digital has taken talks with her advisers on the best legal approach.

Alameda Research is also known for its investments across prominent Web3 firms such as Immutable X and Starkware

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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