Voyager Threatens to Issue a Notice of Default to Three Arrows Capital; Agrees to a $200M Cash/USDC Revolver with Alameda Ventures

Voyager Digital, a crypto exchange, announced on Wednesday that they may issue a notice of default to Three Arrows Capital (3AC) for failure to repay its loan, while the parent company, Voyager Digital Holdings, entered a definitive agreement with Alameda Ventures for a $200 million cash/USDC revolver and a 15,000 Bitcoin revolver, according to a press release. 

The crypto brokerage also took to Twitter to make their news public. 

Voyager Digital requested a repayment of $25 million USDC by June 24, 2022, with the remaining amount due by June 27. At the time of their press release, neither of these payments have been made, which will constitute an event of default. Voyager is exposed to 3AC in the form of $311 million worth of Bitcoin and $350 million of USDC. Unfortunately for Voyager, they could not assess how much crypto they will be able to recover from 3AC. 

Voyager intends to pursue recovery from 3AC and is in discussions with the Company’s advisors regarding the legal remedies available,” the press release said. “The Company is unable to assess at this point the amount it will be able to recover from 3AC.”

Voyager Digital’s potential notice of default issuance to 3AC comes a week after insolvency reports surfaced, which stemmed from over $400 million in liquidations from 3AC being carried out by undisclosed crypto lending firms. 

Voyager is not the only company connected to the recent 3AC events. BlockFi’s CEO, Zac Prince, tweeted last Thursday that they accelerated a loan and fully liquidated or hedged all associated collateral after a “large client” failed to meet its overcollateralized margin loan obligations. 

While Prince didn’t specify which “large client” of theirs failed to meet margin loan obligations, many in the industry are assuming it was 3AC. 

In addition, Genesis Trading made a similar announcement to BlockFi’s statement where they said they have liquidated funds from a “large counterparty.” FTX, Deribit and BitMEX all announced the same, while saying outright they liquidated from 3AC. 

The Loan

Voyager entered into a definitive agreement with Alameda for a $200 million cash and USDC revolver and a 15,000 BTC revolver. These proceeds will allow Voyager to better safeguard customer assets during this time of extreme uncertainty in the crypto/digital assets industry. 

Voyager also disclosed that as of June 20, they have $152 million cash and owned crypto assets on hand and $20 million dedicated to purchasing USDC. 

Alameda’s obligations to provide funding contend on numerous preset conditions, including no more than $75 million may be drawn down over any rolling 30-day period, company’s debt must be limited to 25% of customer assets on the platform, etc. 

Author: Tyler Irvin

Related Articles