March 28, 2024

FTX intends to buy troubled BlockFi platform at a big discount

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FTX intends to buy troubled BlockFi platform at a big discount

Crypto exchange FTX plans to finalize a deal to purchase digital asset platform BlockFi for just $25 million, with the company’s market valuation at $3 billion.

Sources at BlockFi announced the planned merger. Platform CEO Zac Prince responded very reservedly to journalists’ questions about the possible sale of the business:

“There are a lot of market rumors, but I can 100% confirm that we are not being sold for $25 million. We will tell you more details as soon as we can."

Zach Prince didn't reject the very idea of ​​the possibleBlockFi acquisitions. Earlier it became known that FTX is ready to acquire the Robinhood trading platform. FTX's acquisition of companies significant to the cryptocurrency industry could turn the exchange into one of the largest on the planet.

The successful completion of the transaction with the owners of BlockFi is supported by the fact that it is FTX’s money in the form of a revolving credit line of $250 million that keeps BlockFi’s business afloat.

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At the same time, the investment company MorganCreek Digital, the main shareholder of BlockFi, is taking active measures to counter the takeover of the platform by the FTX exchange. Morgan Creek is confident that the sale will mean financial losses for all BlockFi shareholders and investors.