FTX acquires Voyager Digital's distressed cryptocurrency assets
After the August 'low ball bid', FTX has secured an even larger stake in the cryptocurrency market.
The world of cryptocurrency has gone through its fair share of rises, dips and turns, with the latest change coming from a successful bid on assets. West Realms Shires Inc, known as FTX US, has officially secured the bid to purchase Voyager Digital’s cryptocurrency assets after a bidding war against other interested parties.
On September 26, 2022, Voyager Digital Ltd. announced via a press release that it has selected West Realm Shires Inc. (FTX US) as the “highest and best bid” for its cryptocurrency assets. The bid is valued at approximately $1.422 billion.
This bid was broken down in the press release into a few distinct areas. Firstly, the bid consists of Voyager’s cryptocurrency at a “fair market value”. This value is to be determined at some point in the future but the current value is estimated at $1.311 billion. Secondly, the bid includes “additional consideration” which has an estimated value of $111 million.
The press release also goes into some detail regarding the debtors and the chapter 11 bankruptcy. “FTX US's bid maximizes value and minimizes the remaining duration of the Company's restructuring by providing a clear path forward for the Debtors to consummate a chapter 11 plan and return value to their customers and other creditors,” The press release states. “FTX US's market-leading, secure trading platform will enable customers to trade and store cryptocurrency after the conclusion of the Company's chapter 11 cases.” What happens with the customers’ cryptocurrency during the process is not mentioned.
It was just on September 22 that FTX sought to raise $1 billion at a $32 billion evaluation. This follows from its initial bid to purchase Voyage Digital as well as its partnership with GameStop (GME) that was announced earlier in September. It seems like it’s been quite a busy period for the team over at FTX US.
As noted in the round of funding piece linked above, the cryptocurrency market is currently experiencing a downturn. With this new acquisition, FTX could be in quite a good position should the market winds change. We’ll be sure to keep you up to date on the latest happenings in the cryptocurrency world.
Sam Chandler posted a new article, FTX acquires Voyager Digital's distressed cryptocurrency assets