nosediving broker's shares down 26% in Friday trading

Shares of the struggling digital broker nosedived by more than 26% in U.S. trading on Friday.

Voyager Digital (VYGVF), a crypto broker, has temporarily suspended all trading, deposits, withdrawals and loyalty rewards as the company announced in a press release. The Voyager card will stop working for owners as of 2 p.m. ET.

  • In a statement, CEO Stephen Ehrlich said, "This was a tremendously difficult decision, but we believe it is the right one given current market conditions."
  • Voyager recently revealed that it had a significant exposure to Three Arrows Capital (3AC) and had issued a notice of default to the troubled hedge fund. Voyager claimed that 3AC has failed to make payments on its loan of 15,250 BTC ($294 million) and $350 million USDC. Voyager said it was seeking all available remedies for recovery from 3AC, including through a court-ordered liquidation process in the British Virgin Islands.
  • In U.S. trading on Friday, shares of Voyager fell by more than 26% to $0.33 (the firm's main listing in Canada was not trading because of the country's Canada Day holiday). Shares are down by more than 97% year to date.
  • Alameda Research, which is owned by FTX CEO Sam Bankman-Fried, provided Voyager with a cash/USDC loan of $200 million and a revolving credit facility for 15,000 bitcoin ($294 million) to safeguard its customer assets.
  • Ehrlich did not immediately respond to a request for further information.

UPDATE (July 1, 19:41 UTC): Updated with information about Three Arrows Capital in second paragraph.

UPDATE (July 1, 19:57 UTC): Updated information about Voyager's stock price movement in deck and third bullet point.

UPDATE (July 1, 20:32 UTC): New information about the Alameda Research loan was added.