FTX Reportedly to Acquire BlockFi for $25M in a Fire Sale

UTC by John Caroline · 2 min read
FTX Reportedly to Acquire BlockFi for $25M in a Fire Sale
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Struggling digital assets lending company, BlockFi may be selling out its remaining assets worth more than $4.5 billion for just $25 million to FTX cryptocurrency exchange.

FTX Cryptocurrency Derivatives Exchange is on the verge of closing a deal that will see it acquiring Cryptocurrency Lending Firm, BlockFi for just $25 million, according to a Thursday report from CNBC.

Information about the fire sale began to buzz the air a few days after FTX reportedly provided a $250 million emergency line of credit to BlockFi to aid its liquidity. However, the supposed acquisition deal has not yet been sealed as it awaits conclusion by the end of the week.

If signed, the deal will see BlockFi selling out its remaining assets worth more than $4.5 billion for just $25 million to FTX cryptocurrency exchange. Hence, apparently being sold at a price way below its last stock valuation with a steep discount of over 99%. Moreso, the unfortunate atmosphere has already affected BlockFi’s equity investors, as the report unveiled that they have been wiped out and are now writing their positions off at a loss.

BlockFi Not Up for $25M?

Rumors regarding BlockFi’s acquisition deal have stirred several emotions on the internet although it is yet to be confirmed.

Nonetheless, a few hours after CNBC reported the impending acquisition deal, BlockFi CEO  Zac Prince took to Twitter to deny the alleged $25 million acquisition news.

According to the tweet, Prince did not disagree with the news that BlockFi was up for a potential acquisition. However, he claimed that the digital assets lending Startup is not being sold for $25 million, although he did not state the amount the company would be sold for.

The tweet reads:

“Lots of market rumors out there – I can 100% confirm that we aren’t being sold for $25M.

I encourage everyone to trust only details that you hear directly from @BlockFi. We will share more with you as soon as we can.”

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John Caroline

Caroline is a zealous writer who recently picked interest in Bitcoin and the cryptocurrency community. She's always learning about the industry and aims to provide timely and accurate information about the latest developments in the crypto space

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