FTX CEO Sam Bankman-Fried has now bought 11% of Voyager Digital, making him the company’s sole largest shareholder.
On June 22, Voyager announced a $200 million and $15,000 Bitcoin loan from Alameda Ventures. On June 17, it sent a “early warning” notification that FTX CEO Sam Bankman-Fried had purchased 14,957,265 shares personally.
The report continued:
“Following the acquisition of the Acquired Shares, the Acquiror together with its affiliate own an aggregate of 22,681,260 Shares, representing approximately 11.56% of the outstanding Shares.”
SBF is now the largest single shareholder of Voyager Digital shares, thanks to the purchase and his “affiliate” holding through Alameda Ventures. The second largest institutional holder, according to Yahoo Finance, is Banc Funds Company, with 417,315 shares (0.21%), and the largest mutual fund is Amplify Transformational Data Sharing ETF, with 2,846,322 shares (1.45% .)
The total number of institutional shares reported is only 8.21% of the float, implying that SBF owns more shares than all other institutions combined. The current free float of shares is 60 million, with 195 million shares outstanding. SBF and Alameda Ventures now possess more than one-third of the current float, with 22.6 million shares.
SBF currently owns 7.8% of Robinhood, a platform that trades regular stocks as well as cryptocurrencies. BlockFi, a cryptocurrency wallet and lending platform, just received a $250 million financing from FTX. Because BlockFi is still a privately held firm, it is only required to report stockholders with a stake of more than 10% in SEC filings.
As a result, it is unknown whether SBF was awarded equity in exchange for this agreement. According to another SEC filing, SBF owns 8.4% of Bitwise Crypto Index Fund, an index of the top ten cryptocurrencies.
SBF looks to be interested in acquiring a share in a number of other cryptocurrency exchanges. Alameda Ventures and SBF are classified in Voyager as “insiders,” as defined by Investopedia.
“someone with either access to valuable non-public information about a corporation or ownership of stock equaling more than 10% of a firm’s equity.”
Given SBF’s status as CEO of FTX and his substantial investment in Robinhood, there may be worries about non-public information available to him. He has been accused of Bitcoin and other cryptocurrency manipulation in the past.
Because insider trading is defined as “the illegal use of non-public material information for profit,” SBF can legally possess shares on competing exchanges. There is no proof that SBF violated any regulations by purchasing shares in exchange for granting lines of credit to failing cryptocurrency startups.
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