Voyager Discloses $660 Million Exposure to Troubled Crypto Fund Voyager Digital becomes the latest crypto firm to face solvency issues as it requests loan repayment from the Singapore-based hedge fund.
In the wake of bitcoin’s recent decrease in price, Voyager Digital, a cryptocurrency brokerage, has been hit hard. Three Arrows Capital (3AC) requested today that the business return its loan after threatening to put it into “debt default” the day before.
Even at today’s prices, the connection between Voyager and 3AC puts $650 million at risk. The stablecoin USDC -0.1% is worth $350 million, according to a statement from the company. If one considers the current market price of bitcoin to be $15,250, this equates to almost $307 million in dollars in bitcoin.
The Singaporean hedging corporation was ordered to pay Voyager $25 million USDC before they claimed the whole USDC and -1.3 percent BTC on June 27. Alternatively, we may never know what the ultimate decision will be. This might happen.
Voyager does not know how much money it will be able to retrieve from 3AC.
For this reason, the corporation must design a method to reimburse its consumers for the money that they’ve placed on the platform since their desire to earn money has put them in this difficult position. Among the other advantages, users have the option of exchanging one kind of token for another, and interest rates may go as high as 9 percent. Naturally, the firm must first improve its position to raise its yields and be eligible for these awards.
The amount of effort put in by the firm to build a solid financial foundation in an increasingly unpredictable industry has grown tremendously. Trader Sam Bankman-quantitative Fried’s company, Alameda Ventures, has given its customer a credit line that may be repaid over time. FTX agreed to a $250 million revolving credit line after BlockFi’s announcement that it will lay off around 20% of its workforce. Bankman Fried has gained a reputation as a lender of last resort in the business in the previous week. Expert in crypto-rescue, Bankman Fried considers himself a rescuer of failed organizations.
With the $200 million in cash and credit facilities announced before, Alameda now has access to 15,000 bitcoins on a credit line. Voyager holds 12.5% of the company’s total worth, according to Bloomberg.
Voyager Digital shares (VOYGFVO +0.1 percent) may have benefited from this credit facility, according to an early recommendation from an equities research group. [VOYGFVO] After CEO Steve Ehrlich revealed the precise 3AC level, this exposure level was immediately modified to “Neutral,” and the alteration was implemented shortly afterward. The stock price is predicted to stay within 15% of its present level throughout the next year, according to research undertaken by the company.
Shares have dropped from a high of $0.80 on Wednesday to $0.57 as of Thursday morning. This time last year, Coinbase and Robinhood saw their stock prices plummet by 77.65 and 51.80 percent, while Voyager’s stock price plummeted by 94 percent over the same timeframe.