Binance and FTX want to buy Voyager

Voyager Digital Holdings, a company that created a cryptocurrency lending platform, filed for bankruptcy some time ago, and now exchanges Binance and FTX appear to have offered $50 million to buy it.

Voyager Digital Holdings’ bankruptcy

The bankruptcy filing had come in early July. At the height of the bear market, Voyager Digital Holdings had filed an official petition for what is known as Chapter 11, which is the provision of bankruptcy law in the United States that allows companies a debt restructuring following a major financial failure.

Voyager’s bankruptcy is related to that of another bankruptcy, namely that of the company 3AC.

Indeed, in late June Voyager Digital Holdings had placed the Three Arrows Capital (3AC) fund in default, causing a Virgin Islands court to declare the fund bankrupt. The company demanded payment of $25 million from the fund on a $350 million loan, and after nonpayment filed for default proceedings.

In the bankruptcy filing with which Voyager is filing for Chapter 11, the company reported that it has more than 100,000 creditors, with assets valued at about $5 billion, but unfortunately cash on hand is only $110 million. 

The offer from Binance and FTX to buy Voyager

For these reasons, Binance and FTX are interested in acquiring Voyager, which further down the road could return to profitability. The offer is for about $50 million, although previously, in 2021, Voyager’s market cap was reported to be as high as $3.9 billion, at the peak of its status.

Its stock price, as the company continues to be listed, has fallen 50% over the course of 2022. It is currently down 6% in the last 24 hours.

The auction of the company’s assets began on 13 September, and Wave Financial and the trading platform CrossTower are also participating.

FTX and the relationship with Voyager due to Alameda

Another user of the lending platform was the trading firm Alameda Research, owned by Bankman-Fried, as is FTX. Alameda had borrowed about $377 million worth of cryptocurrencies from Voyager.

Voyager had also sold part of the company to Alameda. In its July bankruptcy filing, Voyager had stated that Alameda had a 9.5% stake. 

In June, Alameda extended two lines of credit to Voyager, one for $200 million in cash and a second for 15,000 Bitcoin (BTC). Alameda is thus the company’s largest creditor, with an unsecured loan of as much as $75 million.

In a document filed in court last Monday, 19 September, Alameda agreed to repay some $200 million in cryptocurrencies it had borrowed in exchange for $160 million in collateral that Voyager held.