Binance.US, a leading
cryptocurrency exchange, has announced that it will acquire the assets of bankrupt crypto lender Voyager Digital for $1.022 billion. This major development in the industry further solidifies Binance.US's position as a leader in the space, and it will be interesting to see how the acquisition impacts the exchange and the overall market in the coming months and years.
Background on Voyager Digital and Bankruptcy
Voyager Digital, a crypto lender and asset manager, paused withdrawals in July and filed for
bankruptcy due to liquidity issues arising from a $650 million loan default by defunct hedge fund Three Arrows Capital. The company's assets were put up for sale as it sought to pay off creditors and recover from the financial fallout.
Previously,
FTX US had made the largest bid for Voyager's assets, offering $1.4 billion. This deal would have enabled senior claims to be paid in full and allowed unsecured creditors to recover approximately 72% of the value of their accounts. However, after a review of strategic options, Voyager determined that Binance.US's $1.022 billion offer represented the "highest and best bid" for its assets.
Details of the Acquisition
The $1.022 billion bid from Binance.US includes the fair market value of Voyager's cryptocurrency portfolio at a future date, as well as an additional $20 million of incremental value. The deal is set to close by April 18, 2023, subject to a creditor's vote and other customary closing conditions.
In order to show good faith, Binance.US has agreed to make a $10 million deposit and will reimburse Voyager for certain expenses up to a maximum of $15 million. A hearing to approve the purchase agreement will be held by the presiding bankruptcy court on January 5, 2023.
Implications of the Acquisition
The acquisition of Voyager Digital's assets by Binance.US is a significant event in the cryptocurrency industry. Binance.US, which is a subsidiary of the popular global exchange Binance, has cemented its position as a major player in the space with this acquisition.
Voyager's assets, which include a range of cryptocurrencies and other digital assets, will bring additional value to Binance.US and allow the exchange to continue expanding its offerings to users. It will also be interesting to see how Binance.US integrates Voyager's technology and team into its operations.
Conclusion
Overall, the acquisition is a positive development for Binance.US and the cryptocurrency industry as a whole. It demonstrates the growing demand for digital assets and the continued growth and evolution of the industry. As the market continues to mature, we can expect to see more acquisitions and partnerships like this one in the future.
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