FTX Reported Approached BlockFi Buyout for M – CEO Denies

FTX Reported Approached BlockFi Buyout for $25M – CEO Denies

Cryptocurrency exchange FTX is reportedly finalizing terms to purchase conflicting cryptocurrency lending platform BlockFi. However, the exchange is offering just $25 million, a 99% discount at BlockFi’s latest private valuation.

Sources familiar with the situation. told CNBC Thursday that the deal’s term sheet is expected to be signed by the end of the week.

The confidential deal would see BlockFi acquired for $25 million, though that number could change on Friday.
If closed, the deal would see equity investors torched. During last year’s bull market, BlockFi saw valuations in the billions of dollars, with its last valuation reported valuation at $4.8 billion, according to Pitchbook.
One of the sources said those investors are already “wiped out” and writing off their losses.
One source added that there is “more than one deal on the table”.
According to another source, having the deal signed by Friday is a high priority as it also marks the end of the quarter.

FTX told CNBC that it “would not comment on the matter,” when asked. Similarly, BlockFi did not respond to requests for comment.

BlockFi is just one of many companies seeking financial support after the crypto markets tanked in June. Venture capital firm 3AC is already considering asset sales and bailout solutions, an offer Binance has already denied them.
BlockFi has already received a $250 million revolving credit facility from FTX, designed to help the company “navigate the market from a position of strength.”

UPDATE: BlockFi CEO Zac Prince has since denied claims that BlockFi is being bought for $25 million: “I encourage everyone to only trust details you hear directly from BlockFi,” he said. additional .

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