Key takeaways:
The ongoing crypto drawdown with Bitcoin dropping below the crucial $20k support level has devastatingly impacted crypto lending services providers such as Celsius
and crypto hedge funds such as Three Arrows Capital .Consequently, the team at Voyager Digital Limited has announced that it has secured loans from Sam Bankman-Fried-led Alameda Research, to the tune of 200 million USDC and 15,000 Bitcoin (BTC).
According to the team at Voyager Digital, the team has signed a non-binding term sheet with Alameda Research ‘to secure a revolving line of credit providing Voyager with access to further capital.’ The term sheet was pursued due to the current volatile crypto market conditions.
Voyager’s Chief Executive Officer, Stephen Ehrlich, further emphasized that the term sheet would safeguard customer assets. He said:
Today’s actions give Voyager more flexibility to mitigate current market conditions and strengthen our relationship with one of the industry leaders.
Safeguarding customer assets is always our top priority, and ongoing, prudent risk management as well as a strong balance sheet are two ways that we continue to demonstrate that priority.
In addition, the term sheet between Alameda Research and Voyager Digital ‘provides for revolving term credit facilities, each having a term expiring December 31, 2024, and having an annual interest rate of 5% payable on maturity.’
The first credit facility has an aggregate principal amount of $200 million USDC. The second revolving credit facility is for 15,000 Bitcoin.
The team at Voyager Digital has also declared that the company already has an additional $200 million worth of assets on its balance sheet.