Breaking Down Voyager Digital’s Notice to Three Arrows Capital
In a stunning move, crypto exchange Voyager Digital has officially declared a notice of default against Three Arrows Capital (3AC). This comes in light of 3AC’s failure to repay a loan comprising an eye-watering 15,250 Bitcoin (BTC) and 350 million USD Coin (USDC). And honestly, if I were borrowing that much virtual currency, I’d be double-checking my bank account every five minutes!
Ready to Strike Back: Legal Remedies in Play
Voyager is not taking this lying down. The company is currently exploring various legal remedies alongside its advisors to reclaim its funds from 3AC. Think of it as a game of Monopoly where someone forgot to pay rent on Boardwalk. Only this time, it’s a bit more complicated than just passing ‘Go.’
Current Financial Standing: What’s in the Vault?
So, where does Voyager stand financially amid this turbulence? According to a market update, Voyager reported having $137 million in cash and crypto assets as of late June 2022. That sounds reassuring, but with the crypto market as volatile as a cat on catnip, who can say for sure?
Help is on the Way: Meet Moelis & Company
To navigate these choppy waters, Voyager has brought on board the renowned investment bank Moelis & Company as financial advisers. They’re like the Avengers of finance, swooping in to help Voyager fortify its balance sheet while handling liquidity demands. According to CEO Stephen Ehrlich, the team is hustling hard to come up with strategies that will keep the users happy and the wallets moving.
The Alameda Lifeline: A Sigh of Relief?
Voyager has a potential lifeline to hold onto, with $500 million in available funding from a loan agreement with trading firm Alameda Research. It’s like having a friend you can rely on for financial emergencies. They have reportedly accessed $75 million from Alameda, easing some concerns, but only time will tell if it’s enough to weather this storm.
Deadline Drama: The Ticking Clock on 3AC
Last week, Voyager set strict repayment deadlines for 3AC, demanding $25 million by Friday and the rest of the balance by Monday. Spoiler alert: 3AC dropped the ball. This could mean trouble for both companies, but it’s a crowded chessboard in the crypto world, and every move counts.
Market Impact: The Ripple Effect on Voyager Shares
As if things couldn’t get crazier, Voyager’s share price took a nosedive, plummeting by 60% on Wednesday. It’s as if someone pulled the emergency brake on the roller coaster, and everyone is strapped in for a wild ride. To make matters worse, they capped withdrawal limits to $10,000, putting even more strain on users eager to access their funds. It’s like being told you can only take a small sip from a giant soda cup—you’re thirsty, but it’s just not enough!
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