FTX Seeks Permission To Sell FTX Japan, FTX Europe And LedgerX
BlockFi has inked a deal with FTX US that will give the crypto derivatives exchange the option to purchase the lending firm for $240 million.
iexclusivenews reports that BlockFi and FTX US signed agreements for a $400 million revolving credit facility and an option to acquire BlockFi.
“For a variable price of up to $240 million based on performance triggers,” according to BlockFi CEO Zac Prince in a Friday Twitter thread.
The agreement was made, according to the CEO, as part of BlockFi’s efforts “to bolster liquidity and secure client money.”
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The shareholders must yet approve the agreements. The decision was made, according to Prince, as a result of market instability. “Especially market developments connected to Celsius and 3AC,” which had a detrimental effect on BlockFi.
This online news outlet understands that the week after Celsius paused withdrawals. The cryptocurrency lending company lost over $80 million. And after examining “several unpleasant options” for recovery, it joined with FTX US.
“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,” said Prince.
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BlockFi denounced Thursday’s allegations that said FTX wanted to buy the company for $25 million in a blog post on Friday.
The $400 million credit facility, $240 million purchase price, and “other potential consideration” came to $680 million, according to the CEO, for a business that was valued at $5 billion in June 2021.
Prince suggested that “an illegally leaked call” and “pure personal supposition by a single source” were to blame for the report.
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Three Arrows Capital 3AC is said to have failed to meet margin requirements from its lenders, and BlockFi was one of the first companies to liquidate part of the company’s positions in June.
Meanwhile, iexclusivenews Nigeria reports that the crypto lending company said that it would be letting go of 20% of its 850-person employees.
While keeping about 600 of them amid the market downturn and significant price volatility. If FTX US were acquired, whether this choice would change is unknown.
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