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FTX is Rumored One Step Closer to Acquiring BlockFi According to Inside Sources
Summary: FTX is stepping in to buy troubled crypto lender Blockfi, according to 3 CNBC sources. The rumored price, $25 Million, is about 1% of the struggling crypto lender's last private valuation. The source said the acquisition could take a few months to close, and the price tag is not set in stone yet. The source ...
FTX is stepping in to buy troubled crypto lender Blockfi, according to 3 CNBC sources. The rumored price, $25 Million, is about 1% of the struggling crypto lender's last private valuation.
The source said the acquisition could take a few months to close, and the price tag is not set in stone yet. The source also noted that the approaching end of the quarter is the catalyst for the deal. Multiple sources are conflicting on the exact details, with WSJ first reporting that FTX was seeking an equity stake in Blockfi, while The Block reported earlier this week that the plan is an outright acquisition.
The panic sale of the company follows FTX providing a $250 million emergency line of credit to BlockFi just a week ago. FTX CEO Sam Bankman-Fried said the credit line hopes to help BlockFi "navigate the market from a position of strength."
Although these rumors are from allegedly trusted sources, FTX and Blockfi are trying to curb speculation regarding the deal. Blockfi CEO Zac Prince tweeted, "I can 100% confirm we aren't being sold for $25."
Furthermore, A BlockFi spokesperson said the company "does not comment on market rumors," and an FTX spokesperson said the company "would not be commenting on the matter."
Author:Garrett Meifert
Tags: BlockFi,FTX,FTX Exchange
Link: FTX is Rumored One Step Closer to Acquiring BlockFi According to Inside Sources [Copy]
