FTX Acquires Voyager Digital’s Assets After Auction
- Voyager Digital has finally auctioned off its assets, and the winner of the bid is popular crypto exchange FTX after a “highly competitive” bidding round was finally put to rest after numerous rounds that lasted for over 2 weeks.
- The $50 million figure from Bloomberg turned out to be wrong as FTX US’s bid to acquire the assets of Voyager Digital is valued at around $1.422 billion.
- The case with Three Arrows Capital, which also filed for bankruptcy this year, remains at rest with the estate, “which will distribute any available recovery on such claims to the estate’s creditors.”
Crypto lending platform Voyager Digital, which had filed for bankruptcy a few months ago, has finally auctioned off its assets, and the winner of the bid is popular crypto exchange FTX, which is headed by Sam Bankman-Fried, the white knight of crypto and a billionaire entrepreneur. The “highly competitive” bidding round was finally put to rest after numerous rounds and the world’s biggest crypto exchange, Binance, had also taken part in the same.
According to the official statement from the crypto lending platform, the auction process laster for over two weeks and the top two contenders were Binance and FTX, as per a report from Bloomberg. However, as presented by the media outlet, the leading bid was Binance’s which had placed a value of around $50 million on the lending platform.
“In-line with the process outlined in court filings, Voyager received multiple bids contemplating sale and reorganization 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,”the statement reads.
The $50 million figure from Bloomberg turned out to be wrong as FTX US’s bid to acquire the assets of Voyager Digital is valued at around $1.422 billion. The valuation comprises of the following two items:
- 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, and
- Additional consideration that is estimated as providing approximately $111 million of incremental value
Earlier, FTX crypto exchange had shown interest in acquiring Voyager provided it is able to operate profitably and it seems that the deal has finally went through after a long to-and-fro movement. Additionally, the statement from Voyager also confirmed that the case with Three Arrows Capital, which also filed for bankruptcy this year, remains at rest with the estate “which will distribute any available recovery on such claims to the estate’s creditors.”
“FTX US’s bid maximizes value and minimizes 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. FTX US’s market-leading, secure trading platform will enable customers to trade and store cryptocurrency after the conclusion of the Company’s chapter 11 cases,”Voyager said.
Additionally, the purchase of assets of Voyager Digital by the crypto exchange will be presented to the United States Bankruptcy Court for the Southern District of New York on Wednesday, October 19, 2022 and is therefore, pending regulatory approval. Also, the last date and time for presenting an objection to the deal has been set at 4:00 p.m ET on October 12, 2022.