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Voyager Digital is temporarily suspending trading, deposits, withdrawals

July 1, 2022 2:49 PM EDT

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Voyager Digital LLC, the operating platform of Voyager Digital Ltd. ("Voyager" or the "Company") (TSX: VOYG) (OTCQX: VYGVF) (FRA: UCD2), announced it is temporarily suspending trading, deposits, withdrawals and loyalty rewards, effective at 2:00 p.m. Eastern Daylight Time today.

"This was a tremendously difficult decision, but we believe it is the right one given current market conditions," said Stephen Ehrlich, Chief Executive Officer of Voyager. "This decision gives us additional time to continue exploring strategic alternatives with various interested parties while preserving the value of the Voyager platform we have built together. We will provide additional information at the appropriate time."

Voyager previously announced that its subsidiary, Voyager Digital LLC, issued a notice of default to Three Arrows Capital ("3AC") for failure to make the required payments on its previously disclosed loan of 15,250 BTC and $350 million USDC. Voyager is actively pursuing all available remedies for recovery from 3AC, including through the court-ordered liquidation process in the British Virgin Islands.

To support its exploration of strategic alternatives, the Company has engaged Moelis & Company and The Consello Group as financial advisors, and Kirkland & Ellis LLP as legal advisors.

Voyager also provided the following financial and balance sheet updates, per requirements of Canadian Securities Laws. All figures are preliminary, non-reviewed and unaudited and subject to final adjustments following completion of quarterly and year-end close procedures.

June 30, 2022

Crypto assets held (in thousands)

$ 685,373

Crypto assets loaned (in thousands)

$ 1,124,825

A

Cash held for customers (in thousands)

$ 355,725

Crypto collateral received/ held (in thousands)

$ 168,685

Note A: The balance includes $350 million of USDC and 15,250 BTC loaned to Three Arrows Capital.

As of June 30, 2022, crypto assets loaned consisted of the following (in thousands, except for number of coins):

June 30, 2022

Number of Coins

Fair Value

Fair Value Share

BTC

21,796

$ 434,779

39 %

B

USDC

401,762,866

401,763

36 %

C

ETH

170,336

182,160

16 %

Other

106,123

9 %

Total

$ 1,124,825

100 %

Note B: Includes 15,250 BTC loaned to Three Arrows Capital.

Note C: Includes $350 million USDC loaned to Three Arrows Capital.

As of June 30, 2022, crypto assets loaned disaggregated by significant borrowing counterparty was as follows (in thousands) (refer to prior filings for comparative information):

June 30, 2022

Borrowing Rates

June 30, 2022

Counterparty A

1% - 11.5%

$ 376,784

Counterparty B

3% - 10%

654,195

Counterparty C

4% - 13.5%

17,556

Counterparty D

1% - 14%

27,342

Counterparty E

1% - 30%

34,427

Counterparty F

0 %

-

Counterparty G

10.0 %

13,770

Other

4% - 8%

751

Total

$ 1,124,825

As of June 30, 2022, crypto assets loaned balances were concentrated with counterparties as follows (refer to prior filings for comparative information):

Geography

June 30, 2022

Counterparty A

British Virgin Islands

$ 376,784

Counterparty B

Singapore

654,195

D

Counterparty C

United States

17,556

Counterparty D

United Kingdom

27,342

Counterparty E

Canada

34,427

Counterparty F

United States

-

Counterparty G

United States

13,770

Other

Various

751

Total

$ 1,124,825

Note D: Represents amount loaned to Three Arrows Capital.



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