Encryption platform Voyager Digital shares fall 60% after revealing $ 665 million exposure to a harsh hedge fund; considering issuing default

Cryptoplatform Voyager Digital Ltd. VOYG,
-52.50%
shares fell more than 60% on Wednesday after the company said its subsidiary Voyager Digital LLC could issue a default notice to the struggling crypto hedge fund Three Arrows Capital for non-repayment of its loan.

Voyager’s exposure to Three Arrows includes 15,250 bitcoins, or about $ 315 million based on the cryptocurrency’s latest price, and $ 350 million of the stable currency USDC, the lender said in a statement Wednesday. Bitcoin traded at around $ 20,629 on Wednesday, down 4.6% over the past 24 hours, according to CoinDesk data.

The debtor has not yet repaid any of the debt after the lender initially requested a repayment of $ 25 million USDC by June 24 and later of the full balance of USDC and BTC by June 27, according to Voyager.

Voyager said it is in discussions with Three Arrows’ advisors on available legal remedies.

Read: Crypto-crash: Celsius, Three Arrows potential contagion worries investors. Here’s what to look for

Meanwhile, Voyager Digital said another subsidiary of Voyager Digital Holdings, Inc. has entered into a final agreement to raise a $ 200 million cash and USDC revolver and a 15,000 BTC revolver from Alameda Ventures, according to the same statement. The proceeds will be used to “protect customer assets in light of current market volatility and only if such use is necessary,” according to Voyager.

As of June 20, Voyager has about $ 152 million in cash and cryptocurrencies plus about $ 20 million in cash limited to the purchase of USDC, the company said.

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