Voyager Digital to sell its assets to FTX US for $1.4bn
Crypto exchange FTX US is set to acquire bankrupt Voyager Digital’s assets for approximately $1.422 billion after an auction process that lasted two weeks.
FTX US’ winning bid comprises the fair market value of all Voyager cryptocurrency at a to-be-determined date in the future, which at current market prices is estimated to be $1.311 billion, plus approximately $111 million of incremental value.
Voyager says its claims against Three Arrows Capital (3AC) will “remain with the bankruptcy estate, which will distribute any available recovery on such claims to the estate’s creditors”.
The company previously issued a notice of default to 3AC for failure to make the required payments on its previously disclosed loan of 15,250 Bitcoin (BTC) and $350 million worth of USD Coin (USDC).
Voyager Digital filed for bankruptcy protection in July. The firm says: “Since the company’s chapter 11 filing, Voyager has engaged in a dual-track process, considering both a potential sale and a standalone reorganisation.”
“Voyager received multiple bids contemplating sale and reorganisation alternatives, held an auction and based on the results of the auction, has determined that the sale transaction with FTX is the best alternative for Voyager stakeholders.”
It adds that FTX US’ bid “maximises value and minimises the remaining duration of the company’s restructuring by providing a clear path forward for the debtors to consummate a chapter 11 plan and return value to their customers and other creditors”.
Voyager Digital says that the FTX US trading platform will enable customers to trade and store cryptocurrency after the conclusion of the company’s bankruptcy protection case.
The asset purchase agreement between the two firms will be presented for approval to the United States Bankruptcy Court on 19 October. On receiving approval, they will work “promptly” to close the transaction.