Voyager disclosed 15,250 BTC and $350 million USDC exposure to Three Arrows

Voyager Digital disclosed on June 22, 2022 that its exposure to Three Arrows Capital consisted of 15,250 bitcoin and $350 million in USD Coin, while warning that it could not determine how much of the loan it would recover.

The cryptocurrency broker simultaneously announced a definitive credit agreement with Alameda Ventures intended to help meet customer liquidity needs during severe market volatility. Together, the disclosures connected the distress surrounding a major crypto hedge fund to the balance sheet of a customer-facing platform and showed how bilateral institutional lending could transmit risk through the digital-asset industry.

Repayment deadlines had not yet passed

Voyager said its operating subsidiary had initially requested repayment of $25 million USDC by June 24, 2022. It subsequently demanded repayment of the entire USDC and bitcoin balance by June 27, 2022.

According to Voyager’s announcement, neither requested amount had been repaid as of June 22. The company said failure to meet either specified deadline would constitute an event of default and that it was discussing possible legal remedies with advisers.

That chronology matters. On June 22, Voyager had disclosed exposure and threatened a default notice, but the repayment deadlines remained in the future. The public record did not yet establish that Three Arrows had legally defaulted, what assets it retained, whether it disputed the balance or how much Voyager might ultimately collect. Three Arrows did not immediately respond to Reuters’ request for comment.

A credit line with conditions

Voyager Digital Holdings entered a definitive agreement with Alameda for two revolving facilities: up to $200 million in cash and USDC, and up to 15,000 BTC. Voyager described the facilities as available to safeguard customer assets and address liquidity needs if required.

Access was not unrestricted. The company said no more than $75 million could be drawn during any rolling 30-day period. Its corporate debt also had to remain below a formula tied to customer assets, and Voyager had to secure additional funding sources within 12 months.

Voyager reported approximately $152 million in cash and crypto assets owned by the company as of June 20, plus about $20 million in cash restricted to purchasing USDC. These were management-reported figures rather than an independently audited, real-time reserve statement. The disclosure did not provide a complete maturity schedule, collateral ledger or customer-liability reconciliation.

Alameda indirectly held 22,681,260 Voyager common shares, representing approximately 11.56% of outstanding common and variable-voting shares. Voyager consequently treated the facility as a related-party transaction under Canadian securities rules and said its board had approved the agreement.

Measuring the exposure in the June 22 market

CoinMarketCap’s June 22 historical snapshot listed bitcoin at $19,987.03, down 3.49% over its displayed 24-hour window and 11.46% over seven days. Applying that snapshot price to 15,250 BTC produces an illustrative value of approximately $304.8 million. Adding $350 million for the USDC component at a nominal $1 per token gives approximately $654.8 million.

That calculation is interpretation, not Voyager’s loan valuation. CoinMarketCap’s snapshot is an aggregated daily observation rather than an executable price on a named exchange, bitcoin traded continuously, and the loan’s recoverable value depended on timing, custody, legal priority and Three Arrows’ ability to pay. USDC also traded at $1.0001 in the same snapshot rather than exactly $1.

The comparison nevertheless shows the scale of the concentration: the marked exposure substantially exceeded Voyager’s reported $152 million of company-owned cash and crypto assets on hand. It did not prove insolvency, but it made counterparty recovery and continued access to external liquidity central questions for Voyager on June 22.

Later context

Voyager announced on June 27, 2022 that it had issued Three Arrows a notice of default after the required payments were not made. That later development confirms the seriousness of the June 22 warning but was not yet known when the exposure and repayment deadlines were first disclosed.