FTX is reportedly about to finalize a deal to buy insolvent lender BlockFi for just $25 million amid a crash
FTX to finalize BlockFi deal
According to a CNBC story, cryptocurrency behemoth FTX is about to finalize a deal to buy insolvent lender BlockFi for just $25 million.
In comparison to the $5 billion valuations the company sought a year ago, the aforementioned amount is really a drop in the ocean. The well-known cryptocurrency loan business also made its intentions to go public.
BlockFi received a $350 million Series D fundraising round in March of last year, raising its worth to $3 billion. According to the article, the acquisition agreement is anticipated to be signed by this week’s end.
BlockFi was able to obtain a $250 million credit line from FTX earlier this month to protect client cash in the face of liquidity issues.
BlockFi Struggles
After the bankrupt hedge fund missed a payment on a margin loan with excessive collateral, the cryptocurrency lender was forced to liquidate Three Arrows Capital.
The corporation significantly decreased its employees earlier this month in order to minimize costs.
According to a June 17 New York Post article, after Celsius failed, BlockFi struggled to find any financing.
BlockFi reached a settlement with the U.S. Securities and Exchange Commission in January, as part of which it agreed to pay a $100 million fine.
