Voyager Digital Seals Credit Facility Agreement with Alameda Research
Voyager Digital has entered into a loan facility agreement with Alameda Research, in a deal that the brokerage platform says will help it better protect its clients’ assets under current market conditions.
$200 million cash/USDC and 15,000 BTC
Traveler announcement on Friday that it had sealed “a non-binding term sheet” with trading firm Alameda Research, securing a revolving line of credit that provides access to fresh capital when needed.
According to the company, the loan facility will be used to provide a safety net around client assets as the market navigates the current volatility.
The credit facility consists of two parts, the first being a $200 million loan agreement denominated in cash or USDC stablecoin. In addition to this, Voyager and Alameda agreed on another credit facility of 15,000 Bitcoins (BTC).
The term of both facilities expires on December 31, 2024 and will bear annual interest of 5% payable at maturity.
Travel is “well capitalized”
The turmoil in the crypto markets has had a drastic impact on businesses and projects, with recent upheavals for Celsius and 3AC indicating potential contagion.
In light of this, the Voyager team provided asset and risk management update earlier in the week, seeking to assure his customers that all was well.
In addition to stating that he had no assets with Celsius, Voyager CEO and co-founder Steve Ehrlich noted:
“The company is well capitalized and well positioned to weather this market cycle and protect client assets. Voyager’s goal is to continue to develop secure products and services, as well as build trust and leadership in the cryptocurrency industry..”
The company has more than $200 million on its balance sheet, it said Friday.