Binance.US Acquiring Voyager Digital Assets in $1.022B Deal
Binance US announced the acceptance of its revised bid for Voyager Digital. The December 19 announcement confirmed that Binance.US would take over the assets of the embattled crypto lending firm. Binance.US has the last laugh after the unsuccessful bid, where FTX.US emerged victorious with a $1.4 billion offer. Voyager’s financial woes began when defunct Three Arrows Capital defaulted on the $650M. The resulting liquidity crunch made bankruptcy filing inevitable in July.
Acceptance of Strategic Bid from Binance.US
However, the sudden collapse of the Bankman-Fried empire, citing liquidity challenges, led to an inevitable end to the acquisition process. Although a lifeline, Binance.US chief executive Brian Shroder admitted stiff competition lodged by CrossTower and INX. He echoed the late November update provided by Binance Holdings Ltd chief executive Changpeng Zhao who confirmed the resubmission of a revised bid for Voyage Digital.
The press release by Voyager Digital affirmed the acceptance of the Binance.US offer. Further, the Voyager representative indicated that the $1.022 billion offer by the autonomous arm of Binance Holdings provided a realistic and strategic bid for the assets. The update disclosed that the $1.022 billion offer involves the fair market value of the cryptos portfolio at a post-determined date. Besides, it accommodates an incremental value set at an additional consideration of $20M.
The acceptance statement agreed upon by both parties indicates awards of Voyager’s claims from Three Arrows Capital (3AC) to the bankruptcy estate. The agreement awarded proceeds from the future recovery of the claims against 3AC alongside others to the crypto lender’s creditors. The Shroder-led crypto exchange proposes refunding crypto to Voyage’s customers relative to its capabilities. The California-based crypto exchange promised to seek court approval before initiating the disbursement.
Purchase Agreement Details
The purchase agreement with Binance.US departs from the $1.4 billion offer initially submitted by FTX. The October agreement allowed full settlement of claims from seniors while the unsecured creditors could only recover 72% of the value of their accounts.
Binance.US announced the elaborate acquisition process, whose timeline ends on April 18 next year. However, the update revealed Binance committed to remit a $10 million deposit to signal good faith in the acquisition. Also, the Shroder-led crypto exchange agreed to reimburse the lender expenses incurred though capped at $15M.
Binance.US agreed to a hearing scheduled for January 5, 2023, before the bankruptcy court. The parties seek the court’s approval of the purchase agreement. Nonetheless, Shroder expressed the purchase will feature a creditors’ vote that will precede other closing procedures customary to any acquisition process.
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