Voyager digital signed a new deal for a $200 million loan from Alameda Research to secure a line of credit and protect its customers’ assets from the current bear market conditions as we can see more in today’s crypto news.
Voyager digital signed the deal that will see a $200 million cash/USDC-backed credit facility as well as 15,000 BTC to safeguard its customers’ assets from the bear market. The loan will be in two parts, the first part cash with an aggregate principal amount of $200 million, and the second will be in 15,000 BTC. Voyager will use the credit facilities if needed to protect the customer assets. The credit will expire on December 31, 2024, and will have an annual interest rate of 5% payable on maturity. The CEO Stephen Ehrlich added:
“Today’s actions give Voyager more flexibility to mitigate current market conditions and strengthen our relationship with one of the industry leaders.”
In addition to the funds available under the credit facilities, Voyager said it has $200 million on its balance sheet currently. The shares of Voyager Digital were downgraded to neutral from buying by the investmetns from Compass Point company which cited headwinds across the industry and questioned how the platform’s retail investors will fare during the market rout. Voyager raised $60 million in a private placement of $2.34 per share led by Alameda Research and the stock of the broker dropped around 91% and traded at $1.34 per share on Friday.
As recently reported, The New Jersey Bureau of Securities issued a cease and desist order against Voyager Digital for selling unregistered securities via its Voyager Earn Program. Voyager is actually a centralized and crypto-based staking, trading, and lending platform. The order claims that each of the lending accounts issued through the program since 2019 is unregistered because of the promise of interest rates as high as 12%. The Bureau cited as evidence include messages on Voyager’s homepage that encourage users to grow their portfolio and journey to new frontiers in investing.
The New Jersey regulator claims that about 52,800 accounts and $187 million in assets came from users based in the state and 1.5 million of them were active with $5 billion in assets on Voyager overall. Voyager received the order after its marketing tactics got criticized as well with the regulators stating promotions for the program failed to disclose that the parent company Voyager Digital LLC is a publicly-traded company in Canada and not the US.
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