Crypto brokerage Voyager Digital signed a non-binding term sheet with Alameda Research for a revolving line of credit providing access to further capital, in consideration of current market conditions, it said in a news release on Friday.
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The proceeds are to be used to safeguard customer assets in light of current market volatility and only if such use is needed, it said.
The first part is a cash/USDC-based credit facility of $200 million, while a second is for 15,000 in Bitcoin (BTC).
The credit facilities expire on December 31, 2024, with an annual interest rate of 5% payable on maturity.
In addition to the funds available under the credit facilities, Voyager has more than $200 million on its balance sheet.
Voyager and Alameda are working on documentation, which is expected to be completed in coming days.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Mike Millard has worked as an editor for Bloomberg and Reuters, various newspapers and websites. He lived in Asia for more than two decades and now calls the Greek island of Corfu home. He is the author of three books.
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