Alameda Leads Voyager Digital Financing Round of $60 Million

The cryptocurrency broker Voyager Digital attracted around $60 million in a private placement of common shares. The financing round was led by Alameda Research, Sam Bankman-Fried’s firm.

Participants included: Digital Currency Group’s Barry Silbert, Galaxy Digital’s Mike Novogratz, and Blockdaemon. The sole agent and bookrunner was BTIG.

Voyager Digital will use the funding for general corporate purposes.

Completing the offering in full will enable the firm to lift its liquidity to more than $225 million in hand. Of that amount, about $50 million will be held in cryptocurrencies.

“Additional capital will support the execution of our strategic plan. Deepening relationships with industry-leading players will help us achieve the goals of expanding existing programs, as well as entering the Web 3.0 and NFT space,” said founder and CEO Steven Ehrlich.

Voyager conducted the offering at 3 CAD ($2.34) per common share.

On Monday, May 16, the company reported financial results for the first quarter. Revenue was $102.7 million, up 70% year on year. The company posted operating losses of $43 million.

From a Friday close near $3.10, Voyager shares fell to $2.25 on Monday. After a recovery, as of writing the stock was trading near $2.32.

Voyager reported that, compared with the previous quarter, the number of users rose by 9% to 3.5 million, funded accounts rose by 11% to 1.2 million. However, assets on the platform declined from $6 billion to $5.8 billion.

In October 2021, Alameda Research invested $75 million in Voyager.

As reported in January 2022, it emerged that the Canadian firm had been among the providers of crypto-lending services, against whom the began an investigation by the U.S. Securities and Exchange Commission.