By
Bhushan Akolkar
April 26th, 2024
The strategic decision by FTX to sell its Anthropic holdings comes at a time when the AI firm’s valuations have been soaring past $18 billion.
FTX is making all possible efforts to revive its crypto exchange platform and repay its debt. Over the last weekend, FTX filed a motion to sell its 8% stake in AI firm Anthropic. The move comes amid the exchange’s comprehensive plan to liquidate its key holdings and repay its customers and creditors.
Under the leadership of its newly appointed CEO John Ray III, FTX is seeking court approval to oversee the sale of Anthropic Holdings. The exchange has also proposed methods such as an auction or private sale thereby maximizing its returns from its Anthropic holdings.
The AI firm has registered strong growth over the last year. With the $750 million fundraising last month, the company’s valuation stands at a staggering $18.4 billion. Besides, Anthropic is also emerging as a strong competitor to OpenAI.
As said, the urgency of the sale by FTX is underscored by Anthropic Holdings’ significance in the AI sector. Also, FTX’s stake in the AI firm is at an estimated $1.4 billion.
A court hearing to discuss FTX’s proposal is scheduled for February 22, with the company requesting a shortened objection period to expedite the sale process. This highlights the pressing need for FTX to address its debts, including the potential full repayment of all customer and creditor claims.
FTX’s legal team wants to keep the Anthropic sale price confidential for now. They expressed concerns that public disclosure could negatively impact the bidding process thereby limiting potential offers. This way, FTX would be able to address its financial obligations as it undergoes a restructuring process.
FTX Pursues $175 Million Claim Sale Against Genesis
In a strategic move to further optimize its asset liquidation, FTX is actively seeking to sell its $175 million claim against Genesis Global Capital. This claim holds significant importance in the exchange’s broader efforts to streamline its assets under the most favorable conditions.
The decision to sell the Genesis claim becomes particularly noteworthy amid current market dynamics, where claims against Genesis are trading at a premium. This trend indicates a robust demand and suggests the potential for higher recovery for FTX through this strategic asset liquidation.
To ensure an effective and lucrative sale, FTX has outlined a comprehensive sales strategy for the Genesis claim. The procedure includes the implementation of a minimum sale price threshold based on quotes from leading market-makers. This meticulous approach aims to maximize gains for FTX by capitalizing on favorable market conditions during the claim sale. Stay tuned for further updates on FTX’s asset management and strategic initiatives in the evolving crypto landscape.