Following a $1.4 billion offer, FTX was named the successful bidder for the insolvent cryptocurrency company Voyager Digital Ltd. (OTC: VYGVQ) earlier this week.
But the amount paid for the firm itself, according to court documents, was substantially less — at $51 million.
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The majority of FTX's offer was centered on Voyager's $1.31 billion in cryptocurrency assets. According to the documents, those holdings will be allocated pro rata to qualifying creditors.
The Voyager transaction's documents demonstrate FTX's evaluation of non-crypto assets, such as:
- Its users
- Its intellectual property
- The structure of the Voyager business itself
Added up to a minimum of $111 million in total, only $51 million of that is allocated for the assets, IP, and user base of Voyager. The remaining $60 million is made up of a $20 million earn-out allowance and a cumulative $50 account credit for each Voyager user who onboards with FTX.
It's not immediately clear who the beneficiaries of the earn-out allowance would be, which is frequently utilized in acquisitions to reward the founding and management teams of the target company.
According to Voyager's bankruptcy report, the company had just under $900 million in cryptocurrency assets for clients, another $456.44 million in loans, and $173.68 million in borrower collateral.
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Users of Voyager who decided to switch to FTX's platform would be given a pro-rata distribution of the company's assets depending on their share of the company's total holdings.
If creditors accept FTX's offer, all of Voyager's loan balances — aside from the 3AC loan — would be transferred to the business.
Given FTX's assumption of customer assets and loan levels, the $51 million asking price for Voyager and its related claims would constitute a significant discount.
Disclosure: Benzinga CEO Jason Raznick is a member of the unsecured creditor committee in the Voyager Digital bankruptcy case.
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