FTX’s $1.42 Billion Bid For Voyager Digital Now Tabled Before The Creditors

Twitter icon  •  Published 1 year ago  •  Hassan Maishera

Voyager Digital’s creditors have a month to vote on FTX’s $1.422 billion proposal to acquire the cryptocurrency lending platform.

Bankrupt crypto lender Voyager Digital has presented its proposal to its creditors after receiving initial court approval on Wednesday for a $1.42 billion sale of its assets to exchange platform FTX.

This latest development means that creditors would vote on the proposal to sell the company to FTX, one of the leading cryptocurrency exchanges in the world. 

United States Bankruptcy Judge Michael Wiles in Manhattan revealed during a court hearing that he would approve FTX’s proposal to acquire Voyager Digital once Voyager makes certain changes identifying that it remains open to higher and better offers than the one FTX proposed. 

Wiles added that the sale wouldn’t be concluded until it is approved by Voyager Digital’s creditors as part of a Chapter 11 bankruptcy plan. He said, "If the plan falls apart, there's no part of this agreement that survives."

This latest development comes roughly a month after Voyager Digital announced that it had been acquired by FTX. The lending platform sent out a press release following the sale to state that the bid was made up based on the market value of its crypto holdings “at a to-be-determined date in the future,” said to be around $1.3 billion, with additional consideration of $111 million of what it says is “incremental value.”

According to the terms of the deal, most Voyager Digital customers would migrate to FTX’s platform. The customers would also recover  72% of the cryptocurrency assets that they held with Voyager before the lending platform filed for bankruptcy. However, the value of those crypto assets could have declined since Voyager filed for Chapter 11 a few months ago.

The report added that Voyager account holders remain the primary creditors in the bankruptcy, with court documents showing that they have claims worth $1.76 billion

The creditor votes are expected to be concluded by November 29, and Voyager will seek final approval of the sale in a confirmation hearing the following month. 

FTX is also considering acquiring Celsius, another embattled cryptocurrency company. FTX reviews within and outside the United States have been positive, and its acquisition of embattled cryptocurrency companies could attract many crypto traders to the cryptocurrency trading platform. Also, the low FTX fees also mean that the cryptocurrency exchange is growing far more quickly than any other reputable crypto trading platform.

Author

Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.