Voyager Digital Raises $60M in Private Placement Led by Alameda

The new funds will take the trading platform's liquidity to more than $225 million.

AccessTimeIconMay 16, 2022 at 1:34 p.m. UTC
Updated May 16, 2022 at 2:47 p.m. UTC

Michael Bellusci is CoinDesk's crypto payments reporter.

Crypto trading platform Voyager Digital (VOYG) raised $60 million in a private placement offering at $2.34 a share led by Alameda Research.

The placement also included participation from Galaxy Digital, Blockdaemon and Digital Currency Group, the parent company of CoinDesk. Investment bank BTIG is the sole agent and bookrunner.

Voyager said the company will have liquidity of more than $225 million, about $175 million in cash and another $50 million in crypto, when the offering is fully completed. It expects to use the proceeds for general corporate purposes.

The company also reported revenue of $102.7 million in the fiscal third quarter ended March 31, up 70% from the year-earlier period. Still, it sank to an operating loss of $43.0 million compared with income of $29.8 million the year before.

"With the recent changes to our rewards model and actively addressing our cost structure to ensure an efficient use of capital, we are working toward a goal of returning to positive operating income, after adding back stock-based compensation, in early calendar 2023," the company said in a statement.

Total assets on its platform fell to $5.8 billion from $6.0 billion at Dec. 31, 2021.

The private placement "points to a challenging operating environment," Chris Allen, a research analyst with Compass Point, told clients in a note Monday. Allen maintained a buy rating and a C$14 (US$10.83) price target on shares.

Voyager's Toronto-listed shares, which closed at C$4 on Friday, fell as much as 13% at Monday's open.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

CoinDesk - Unknown

Michael Bellusci is CoinDesk's crypto payments reporter.

Trending

1
CoinDesk - Unknown
A New Chapter of Web3: Solana Unveils Smartphone ‘Saga’; Moody’s Downgrades Coinbase

The most valuable crypto stories for Friday, June 24, 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
How Are Institutions and Companies Investing in Crypto?

From putting bitcoin on their balance sheets to setting up shop in the metaverse, the ways brands and institutions are investing in cryptocurrencies continues to expand.

CoinDesk - Unknown
3
CoinDesk - Unknown
Consensus 2022: Hollywood, Colleges, Conferences vs. Crypto

The state of crypto and economics live from Consensus 2022 in Austin, Texas.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin se estabiliza cerca de $21K; inversores esperan evitar otra caída el fin de semana

Los analistas se cuestionan si BTC podrá mantenerse por encima del umbral de $20.000 en un clima de desconfianza entre los inversores.

CoinDesk - Unknown