The Big Move: Binance.US Steps In
In a recent twist in the cryptocurrency saga, Binance.US is set to acquire the assets of the beleaguered Voyager Digital for a whopping $1.022 billion. This decision comes after a careful review of strategic options, and according to the firm, Binance.US represented the “highest and best bid for its assets.” So, it looks like Binance will be adding a little more crypto to its already overflowing portfolio.
What’s in the Deal?
The major chunk of the $1.022 billion bid will consist of the fair market value of Voyager’s extensive cryptocurrency portfolio. This value, however, is still to be determined at a later date. As if that wasn’t generous enough, Binance has thrown in an additional consideration of $20 million, just to sweeten the pot!
Who’s Still in the Game?
However, not everything can be wrapped up neatly with a bow. Voyager’s claims against the now-infamous Three Arrows Capital will stay with the bankruptcy estate. Any recovery that might come from those claims will be distributed to creditors, which feels a bit like playing the ultimate game of “finders keepers.” Meanwhile, Binance’s intentions with this bid appear aimed at returning crypto to customers according to court-approved disbursements.
Timelines and Conditions
Mark your calendars, folks! The deal is slated to close by April 18, 2023. Binance has put down a $10 million deposit to show it’s serious and will cover some expenses up to $15 million. However, before all the excitement can brew, a hearing with the bankruptcy court is set for January 5, 2023, to approve the purchase agreement. And let’s not forget: a vote from the creditors still looms, along with a few other routine closing conditions. Yikes!
The Background Drama
To give a little context, Voyager paused all withdrawals back in July and filed for bankruptcy due to some hefty liquidity issues, largely stemming from a $650 million loan default linked to the vanishing act of the hedge fund, Three Arrows Capital. Interestingly, in what feels like ancient history now, troubled exchange FTX US had previously made a bid of $1.4 billion for Voyager’s assets. This earlier proposal allowed senior claims to get paid in full and helped unsecured creditors recover around 72% of their accounts. A hefty sum, if only the winds had shifted a little differently!
A Word from the Experts
In light of recent events, Voyager’s committee of unsecured creditors expressed optimism about Binance’s bid. They stated on Twitter that this transaction might indeed be the best path forward, although they are still giving it a thorough once-over. After all, being notified of Voyager’s intention to accept the bid on December 8 doesn’t leave much time for deliberation. Sounds like a classic race against the clock!
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