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HomeTechnologyFTX acquires insolvent Voyager digital at discount price of $51 million

FTX acquires insolvent Voyager digital at discount price of $51 million

US based cryptocurrency exchange FTX continues its buying streak as on September 30 the top crypto firm FTX acquired struggling cryptocurrency broker Voyager Digital at a discounted price of $51 million. after making an acquisition offer for the company earlier this week.

$51 million

As per the media report, FTX, a digital currency derivative exchange, has won the auction to buy Voyager after bidding $1.42 billion. 

The exchange will only pay $51 million in cash for the platform’s assets, intellectual property, and user base.

FTX, led by billionaire CEO Sam Bankman-Fried, defeated Binance, the largest cryptocurrency exchange platform in the world by volume, in a bidding war to acquire the insolvent cryptocurrency company.

As per the report, the majority of FTX’s offer was focused on Voyager’s holdings of digital assets, which are estimated to be worth $1.3 billion and will be allocated to creditors equally.

Moreover, the report also highlights that an additional $60 million will go toward paying $50 to each user who successfully switches to FTX.

Additionally, users of Voyager who joins FTX will get an equivalent quantity of virtual assets from Voyager based on their holdings.

Bankman-Fried earlier stated that the aim of the effort to acquire Voyager was to both revitalise the company and to relieve clients without subjecting them to dangers.

The bid from FTX, which is awaiting approval, would transfer all of Voyager’s loan amounts to the cryptocurrency exchange, with the exception of the $670 million loan from cryptocurrency broker Three Arrows Capital (3AC).

Bankman-Fried stated earlier this month that FTX was prepared to continue its investment spree and still had around $1 billion in its bank account to do so. 

According to a report from earlier this week, FTX may attempt to acquire the insolvent cryptocurrency lending company Celsius.

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