Crypto broker Voyager Digital (VOYG) signed a non-binding term sheet with quant trading shop Alameda Research to secure a revolving line of credit to safeguard its customers’ assets from current bear market conditions.
The loan will be in two parts. The first is a cash/USDC-based credit facility with an aggregate principal amount of $200 million. The second revolving credit facility is for 15,000 BTC. Voyager will only use the credit facilities if needed to safeguard customer assets, the broker said in a statement on Friday.
The credit facilities will expire on Dec. 31, 2024, and will have an annual interest rate of 5% payable on maturity.
“Today’s actions give Voyager more flexibility to mitigate current market conditions and strengthen our relationship with one of the industry leaders,” said Voyager’s CEO Stephen Ehrlich.
In addition to the funds available under the credit facilities, Voyager said it has more than $200 million on its balance sheet.
On May 17, shares of Voyager Digital were downgraded to neutral from buy by boutique investment firm Compass Point, which cited headwinds across the crypto industry and questioned how the trading platform’s retail investors will fare during the market rout.
Previously, Voyager raised $60 million in a private placement offering at $2.34 a share led by Alameda Research. The stock of the broker has fallen about 91% this year, trading around C$1.34 per share on Friday, according to TradingView data.