BlockFi Agrees to Deal with FTX With ‘Option to Acquire’ for 0M
FTX US has penned a deal with BlockFi that will provide the beleaguered crypto lender with a $400 million capital injection and gives the cryptocurrency exchange the option to purchase the lending firm.
In an announcement made on Twitter this Friday, BlockFi CEO Zac Prince said that his firm had signed agreements with FTX US for a $400-million revolving credit facility as well as the option to acquire BlockFi “at a variable price of up to $240 million based on performance triggers.” The CEO explained that the deal was agreed upon as part of an effort “to bolster liquidity and protect client funds” at BlockFi.
(Long thread!)
Excited to share an update on our previously announced term sheet with @FTX_US – and how we’ve broadened the scope of the initial deal for the benefit of all key @BlockFi stakeholders.
— Zac Prince (@BlockFiZac) July 1, 2022
https://platform.twitter.com/widgets.js
Prince said both parties agreed to the “definitive agreement” one day prior. While still pending shareholder approval, the total value of the deal is “up to $680 million.”
While earlier reports listed FTX takeover price at $25 million, BlockFi dismissed the rumors as the result of “an inappropriately leaked call” and “purely personal conjecture by a single party.”
Prince also clarified that recent volatility in the crypto market, “particularly market events related to Celsius and 3AC,” heavily impacted BlockFi leading to big losses. He explained that BlockFi’s products and services continue to operate:
“All of our products and services — including funding and withdrawals, our trading platform, credit card and global institutional services — continue to operate normally, with incremental capital strength behind them.”
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Source: igaming
