Voyager Digital LLC recently signed an agreement with FTX exchange, one of the main competitive bidders since the commencement of the auction, wherein the latter will acquire complete ownership of Voyager’s digital assets following the successful conclusion of the auction.
The Closing of the Sale
Recently, Voyager Digital announced the conclusion of a successful auction, recognizing FTX exchange as the winner bidder. The insolvent crypto lender will soon sign a contract with FTX exchange, a renowned cryptocurrency exchange platform, to become the new owner of Voyager’s digital assets.
Voyager made the auction’s progress public, noting that there were numerous rounds of bidding due to the competition among bidders. The defunct digital asset lender determined that the North American regulated digital asset platform West Realm Shires (FTX US) submitted the best offer to acquire its virtual assets. The Official Committee of Unsecured Creditors oversaw the whole auction process and approved FTX US as the successful bidder.
FTX Wins the Conflict
FTX is thought to have submitted the highest proposal, which is anticipated to be roughly $1,422,000,000 USD. First, the fair market worth of the digital assets previously owned by Voyager, which changes according to current market conditions and sentiment, was factored into the offer calculation. At current market pricing, FTX’s total liquidated assets are projected to be worth at least $1,311,100,000,000.
Second, the theoretical aspect implies an incremental value of 111 million dollars for the newly acquired digital assets of the FTX exchange.
In the first two weeks after declaring for Chapter 11 bankruptcy, Voyager digital apparently got more than 88 bids. The offers were submitted by several financial entities, including exchanges like FTX, Binance, and Coinbase, as well as online bitcoin hedge funds like Wave Financial.
Just a week ago, Binance, the largest cryptocurrency exchange in the world, had the highest bid, which was valued at over $50 million. According to a post by The Wall Street Journal, global news outlets believed Binance’s request to be slightly more than FTX.
Prior to Binance’s bid, FTX’s bid was largely disregarded by the disabled digital asset lender, which stated that FTX’s bid was “a low-ball bid disguised as a white knight rescue.” This comment indicated that FTX exchange’s offer was too low and appeared to be an attempt to capitalize on Voyager Digital’s desperation.
Since the beginning of 2022, the significant volatility of the cryptocurrency markets has been blamed by Voyager Digital LLC. The lender also attributes the failure of Three Arrows Capital TAC, an institutional-sized bitcoin hedge fund, to Voyager’s loss of approximately $650 million when the company filed for bankruptcy. Three Arrows Capital failed with approximately $10 billion in funding from ordinary investors and institutions such as the crypto lending platform of Voyager.