Express
FTX Has Reached a Deal to Acquire BlockFi
Summary: FTX has agreed with Blockfi to have an "option to acquire" the crypto lender for up to $240 million. Rumors of FTX acquiring the platform spread over a week ago, with the most recent update coming yesterday. Rumor had it yesterday that the company would be acquired for $25 million, although the CEO of BlockFi, ...
FTX has agreed with Blockfi to have an "option to acquire" the crypto lender for up to $240 million. Rumors of FTX acquiring the platform spread over a week ago, with the most recent update coming yesterday.
Rumor had it yesterday that the company would be acquired for $25 million, although the CEO of BlockFi, Zac Prince, denied those rumors, saying, "I can 100% confirm we aren't being sold for $25M." Given these new developments, he was telling the truth.
The newly proposed deal gives FTX US the right to acquire BlockFi, and, according to CEO Zac Prince, "protect client funds." In a tweet this morning, Prince said they came to a "definitive agreement" Thursday. He said the deal is still subject to shareholder approval. The deal has a total value of "up to $680 million."
This deal will help cover Blockfi's $400 debt to clients and leave some $240 Million left over to acquire the company. This $240 million purchase price is still less than 10% of the $3 Billion valuation that Blockfi received this fall.
Author: Garrett Meifert
