Voyager Digital Ltd - VYGVF stock

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OTC Symbol: VYGVF | Related ticker symbols: TSX:VOYG

Description

Voyager Digital Ltd. [OTCPK: VYGVQ stock] is a publicly traded cryptocurrency platform that operates in Canada and the United States. Founded in 2018, the company provides retail and institutional investors with secure access to trade over 100 crypto assets in different marketplaces under one account using its readily accessible mobile application. It enables investors to earn up to 12% on more than 40 cryptocurrencies annually. Through Coinify ApS, its subsidiary, the company advances global crypto payment solutions for consumers and merchants. The firm was initially named Voyager Digital (Canada) Ltd. and changed to Voyager Digital Ltd in July 2020. It is headquartered in New York, USA. The company’s shares are listed on OTC Pink under the VYGVQ symbol and Toronto Stock Exchange under the VOYG ticker symbol.

Summary Business Operations

The company is chartered as a money services business under the Bank Secrecy Act regulations as administered by FinCEN. Voyager is licensed to operate as a money transmitter or equivalent in states requiring such requirements. Through its US-based subsidiaries, the company operates as a cryptocurrency asset broker. Coinify Financial Services ApS, Coinify Global Solutions, Inc., HTC Trading Inc., LGO SAS, LGO Europe SAS, Voyager Digital Brokerage Ltd, Voyager I.P., LLC, Voyager European Holdings ApS, Voyager Digital Holdings, Inc., Coinify Technologies ApS, and Coinify Payments O.U. substitute Voyager's subsidiaries. The firm's platform enables investors to buy and sell crypto assets across multiple centralized crypto markets in a single account. Clients also conveniently access market data, trade execution, wallet, and custody services.

Through the company’s platform, customers can:

• Rapidly set up a trading account. The company employs third-party services on KYC and money laundering chances to ensure secure account opening
• Spontaneously trade between crypto assets and fiat in the same account
• Earn rewards associated with specific assets held in their accounts
• Initiate and execute trade across a myriad of liquidity options
• Hold crypto assets via various storage solutions while instantaneously ensuring security and availability equilibrium
• Access relevant market data to help them manage and track their holdings

The company has an Account Services Agreement with the Metropolitan Commercial Bank [NYSE: MCB]. The bank is obligated to provide each customer account in the U.S. with all services associated with the holding of and the movement of U.S. dollars. In return, the bank is entitled to fees for account and wire transactions, subject to a minimum monthly fee of $10,000.

Strategy

Voyager believes that digital assets are disrupting typical finance and investing models. The company envisions millions of people across the globe utilizing Bitcoin and Crypto assets to achieve financial freedom. Furthermore, these assets leverage the power of the internet and mobile phones to penetrate the world.

Critical Acquisitions and Strategic Investments

Voyager closed the stock and cash acquisition of Coinify ApS on August 2, 2021. Coinify is an established cryptocurrency payment platform constituted under the laws of Denmark. The company advanced $16.3 million in cash and 5,100,000 of its newly issued shares. The firm also absorbed all Coinify employees and management into its team.

Market Rebellion’s 50% investment in VYGR Digital Securities, LLC to advance brokerage services on equities, options, and futures trading via the Voyager platform was approved by FINRA on August 12, 2021. Market Rebellion provides trading education, content, and tools independent investors need to achieve optimal digital investment returns. The two companies orchestrated a broker-dealer deal rooted in providing online brokerage services for equities, options, and futures.

In October 2021, Voyager became Dallas Mavericks’ first crypto brokerage and international partner when it closed a five-year exclusive integrated partnership. Voyager and the club agreed to initiate fan-based promotions and educational and community programs to market and increase the accessibility of cryptocurrency. The company also entered a multi-year brokerage deal with The National Women's Soccer League (NWSL) in December 2021. Voyager agreed to provide NWSL players with crypto education, direct financial support, and rewards while using the NWSL to market its business.

Corporate Developments

Voyager entered a voluntary restructuring process in July 2022 to maximize customer value. After weeks of a tight multiple bidding series in a highly competitive auction process, Voyager declared on December 19, 2022, that Voyager Digital [OTCPK: VYGVQ], its operating company, had chosen U.S. exchange BAM Trading Services Inc. (Binance.US) as the highest and best bid for its assets. Binance.US, valued at approximately $1.022 billion, set a prompt to unlock Voyager customer funds. Binance.US agreed to deposit $10 million to Voyager in good faith and compensate the company up to $15 million maximum for certain expenses. Voyage, however, confirmed on April 25, 2023, that Binace.US had backed out of the deal. Binance.US cited hostile and uncertain regulatory conditions in the U.S. that sired unpredictable business operating environments. As a result, Voyager resolved to direct distributions to remit value to its customers.

Management

Executive Team

Stephen Ehrlich, Chief Executive Officer, & Director

• He is also a co-founder of the company
• As CEO of E*TRADE Professional Trading LLC., he led the company into eight mergers and acquisitions in seven years, including Lightspeed Financial, LLC buyout in 2006, becoming the latter’s CEO
• Holds a Bachelor of Science in Accounting from Franklin & Marshall College

Ashwin Prithipaul, Chief Financial Officer

• Has over 20 years of experience in the scopes of finance, accounting, treasury
• Before Voyager, he served as the CFO of DriveDigital, a subsidiary of DriveWealth focused on digital assets, CFO of  Galaxy Digital, and Director of Financial Reporting at  Assured Guaranty
• He is an FCA who also holds a BSc in Economics from the London School of Economics

Other members of the management team include:

• Pam Kramer, Chief Marketing Officer
• Rakesh Gidwani, Chief Technology Officer
• Marshall Jensen, Head of Corporate Development
• Gerard Hanshe, Chief Operations Officer

Lawsuits

Voyager Digital (OTCPK: VYGVQ) and its management are under hot pursuit from the U.S. Federal Trade Commission under alleged "deceptive and unfair" crypto marketing to the public. FTC suggested that the success of the company’s proposed $1B asset sale plan to Binance.US would secure the firm from fraud-related allegations.

On January 30, 2023, FTX, a bankrupt cryptocurrency, filed a lawsuit against Voyager Digital, a crypto lender, seeking to claw back up to $445.8 million in loan repayments made to Voyager before it went bankrupt. Voyager filed for bankruptcy in July 2022 and demanded loan repayments from FTX and Alameda Research, the latter's affiliate hedge fund. FTX later filed for bankruptcy in November 2022. FTX, on Alameda's behalf, alleged in the court filing that it remitted $248.8 million and $193.9 million in September and October 2022, respectively. It also made $3.2 million in interest payments in August. FTX claimed that since it made the payments on the verge of Voyager's bankruptcy filing, they could be clawed back to settle other FTX creditor debts.