The current market conditions have proved difficult for several small cryptocurrency firms to sustain their enterprise. Companies like Three Arrows Capital and Celsius have confessed to facing severe liquidity issues due to the current bearish sentiments. Amidst this, Voyager has managed to secure generous loans worth around $500 million from Alameda Research.
Voyager and Alameda Research
Voyager is a broker that lets users invest in cryptocurrency in an easy format. Founded in 2018, the company has been prominent for its ease to use and simple interface. The company’s founder Stephen Ehrlich has experience in finance and education. The major investors of the project include big names in the industry like Talos, USIO and Blockdaemon.
Alameda Research was founded by crypto billionaire Sam Bankman-Fried and is a private equity firm based in Hong Kong. The company provides liquidity to crypto and other digital markets.
Alameda Research has gained much traction in the past couple of years as the founder Sam Bankman-Fried, who also goes by the initials ‘SBF’ created the FTX exchange. Launched in 2017, the liquidity provider organization has active investments in top cryptocurrencies like 1inch, Akropolis, Binance Coin, Bitcoin, Solana etc.
About the Loan Secured
The insolvency of several other crypto platforms had been in the news for a while. Alameda stated that it would lend Voyager the mentioned sum in order to help the smaller player following the disastrous announcements by its counterparts.
The loan secured will be made available to Voyager in two parts specifically. $200 million will be credited to the company in a combination of cash and the stable coin USDC. The second lumpsum will be in the form of 15,000 Bitcoins, which at the time of writing is worth around $312 million. The lent amount shall mature on Dec 31st 2024, at an annual interest rate of 5%.
Sam Bankman Fried, the founder of Alameda Research who had stepped down from his position as the company’s CEO last year, mentioned that it was needed for big players to help out growing organizations at such a time even if they face some consequences. He stated his wish to help out and contribute to sustaining such organizations and encouraged other major organizations to partake in the cause.
With Voyager’s digital stock recording a decline of around 52% in the past month, the loan has come out as a relief for the organization. Voyager’s Chief Executive Stephen Ehrlich said that the funds will help Voyager in mitigating the current bearish scenario and strengthening its bond with one of the biggest crypto players in the market.
Regarding the utilization of the funds, Voyager announced that the terms for the loan were considered with respect to the current market conditions and will be used to safeguard customer assets against market volatility. However, the crypto brokerage company ensured that the money will be used only in the event that it is required.
The entire loan procurement process is expected to be carried out in an efficient manner with ample time for documentation and meetings within the coming weeks.
