Crypto exchange giant FTX is reportedly acquiring troubled crypto broker Voyager Digital at a discounted price after placing a bid to acquire the firm earlier this week.
According to a new report by CNBC, FTX won the auction to purchase Voyager after placing a $1.42 billion bid, though the digital asset exchange will pay just $51 million in cash for the assets, intellectual property and user base of the crypto lending platform.
FTX, headed by billionaire CEO Sam Bankman-Fried, beat out Binance, the world’s largest crypto exchange platform by volume, in a bidding war to scoop up the bankrupt crypto firm.
Most of FTX’s bid was geared towards Voyager’s digital asset holdings, which are valued at about $1.3 billion and will be distributed to creditors proportionally, according to the report.
The report finds that $60 million will also be spent on giving $50 to each user who successfully makes the transition to FTX.
Furthermore, Voyager users who make the journey into FTX will receive a correlative amount of Voyager’s virtual assets based on their holdings.
Previously, Bankman-Fried had said the goal of attempting to acquire Voyager was to revive the business as well as provide relief to customers without forcing them to expose themselves to risks.
FTX’s bid is pending approval and would also transfer Voyager’s loan balances to the crypto exchange, excluding the loan of Three Arrows Capital (3AC), a crypto broker that owes the digital asset lender about $670 million.
Earlier this month, Bankman-Fried said that FTX was poised to continue its investment spree and had about $1 billion left in its coffers to do so. Earlier this week, reports suggested FTX is considering making a move on bankrupt crypto lending firm Celsius.
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