Binance to Buy Voyager Digital's Assets at Discount From FTX's Offer

Binance US is acquiring Voyager Digital’s assets with an offer of US$1.022 billion.

According to a press release, Binance US will acquire Voyager’s assets after offering the “highest and best bid.”

The bid is 27% lower than FTX‘s bid, which came in at $1.4 billion before the exchange collapsed last month.

Voyager Digital declared bankruptcy in June, citing heavy exposure to 3AC.

Binance‘s bid comprised of the fair market value of Voyager’s cryptocurrency portfolio, determined at a future date, as well as an additional consideration equal to $20m of incremental value.

Its bid aims to “return crypto to customers in kind, in accordance with court-approved disbursements and platform capabilities” according to the release and “sets a clear path forward for Voyager customer funds to be unlocked as soon as possible.”

The deal is set to close on 18 April 2022. Binance will make a $10m deposit in good faith and will reimburse Voyager for expenses up to a maximum of $15m.

The presiding bankruptcy court will hold a hearing to approve the deal on 5 January 2023.

With FTX falling at its wayside and other crypto industry giants scrambling to piece their remains together, Binance is taking the opportunity to increase its dominance in the space. Coupled with Binance’s success in muscling out its competitors, crypto winter has discouraged firms from expanding, allowing Binance to pounce. For all its flaws, FTX’s initial $1.4 billion bid was likely to have been a reasonable price, of which Binance has now low-balled.

Binance’s growth is encouraging for the space, demonstrating that companies can still thrive amid crypto winter. However, whether the crypto industry needs such a dominant player in the space is yet to be determined.