VoyagerWith the crypto market experiencing a downturn, companies are seeking capital to keep their operations afloat. One such company is Voyager, one of the market’s premier brokerage firms.

Last week, Voyager announced that it had secured a $500 million loan facility from Alameda Research – the quantitative research company founded by FTX’s chief executive Sam Bankman-Fried.

Voyager Gets a Lifeline

In an official announcement, Voyager confirmed that it had gotten loans from Alameda to help maintain its operations amid the market downturn. The loan facility is divided into two parts: a $200 million loan that mixes cash and the USDC stablecoin and a revolving credit facility worth 15,000 BTC.

As Voyager explained, the size of the loan was determined considering the expected volatility of the crypto market. The company expects the current bearish trend to last for a while. They determined that $500 million should be enough to keep its operations running until the market flips bullish.

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Each loan facility will expire on December 31, 2024, and they carry interest rates of 5% annually, payable at maturity. Besides Alameda’s lines of credit, Voyager has also confirmed a $200 million balance sheet. The company is betting on its roughly $700 million balance sheet to help it stabilise operations amid the choppy market climate.

Sam Bankman-Fried: Billionaire Stabilizer

The loan facility to Alameda is Sam Bankman-Fried’s latest effort to keep the market balanced. After closing the Voyager deal, the 30-year-old billionaire appeared in an interview with NPR, where he explained the role of his companies to serve as stabilisers of the market.

Since the market downturn accelerated, several crypto firms have been caught on the ropes. Celsius, one of the major lending and staking platforms, paused withdrawals and swaps last week as it was in danger of insolvency. Also, Three Arrows Capital, an up-and-coming crypto investment firm, has had to deal with margin calls as the market’s outlook continues to look bleak.

In his interview, Bankman-Fried explained that the recent spate of struggling crypto companies could worsen. In order to “stop the contagion”, he believes that stabilising the market will be healthy for the ecosystem and that companies should do what they can to help the market survive.

Bankman-Fried, true to his word, has stepped into an important role. Besides the Voyager deal, his exchange – FTX – recently offered a revolving line of credit to crypto brokerage firm BlockFi.

Announced on Tuesday, the line of credit will see FTX fund BlockFi with $250 million, which the latter will use to keep its operations afloat and weather the market’s storm.

BlockFi appears to have gotten away with a lifeline as things get worse for crypto prices.

Anti-Bailot Rhetoric Sweeps the Market

Although Bankman-Fried is looking to help struggling companies, his moves have attracted criticism.

Speaking in an interview with Forbes, Hester Pierce, the pro-crypto commissioner at the Securities and Exchange Commission (SEC), explained that the current crypto market – though painful – will help separate strong companies from the weak. She added that Bankman-Fried’s bailouts were harmful to the company as they would only protect mismanaged, over-leveraged companies.

Pierce explained that the crypto market currently doesn’t have a bailout mechanism – another difference between it and the traditional financial space. However, even if it did have such a mechanism, she would not be in support of using it when the market is struggling. She declared that companies would be much better if they allowed these scenarios to play out on their own.

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