Crypto broker firm Voyager Digital Ltd VYGVF has signed a deal with Alameda Research, a quant trading firm from FTX founder Sam Bankman-Fried, to secure a credit facility to safeguard its customers' assets in line with the current market volatility, Bloomberg reports.
According to the report, Voyager will get cash and a USDC-based credit facility worth $200 million. The second revolving credit facility will be for 15,000 Bitcoin BTC/USD, currently valued at around $285 million.
Also Read: Bitcoin Breaks Below $20,000: Analyst Say 'Panic Could Be Massive,' Predicts Lower Price Target
However, Voyager will only use these credit facilities as and when needed to safeguard customer assets.
Talking about the move, Stephen Ehrlich, Chief Executive Officer, Voyager, said, "Today's actions give Voyager more flexibility to mitigate current market conditions and strengthen our relationship with one of the industry leaders."
The term sheet with Alameda Research provides revolving term credit facilities, each with a term expiring December 31, 2024. It will have an annual interest rate of 5%, payable on maturity.
Voyager had more than $200 million on its balance sheet prior to the new funds being added.
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