August 14, 2022

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 close a deal to buy digital asset platform BlockFi for just $25 million, with a market valuation of the company at $3 billion.

The planned merger was reported by sources in BlockFi. The platform's CEO, Zac Prince, was very reserved in responding to reporters' questions about a possible sale of the business:

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

Zach Prince did not reject the very idea of ​​the possibleBlockFi acquisitions. Earlier it became known that FTX is ready to acquire the Robinhood trading platform. Acquisition of FTX significant companies for the cryptocurrency industry can turn the exchange into one of the largest on the planet.

In favor of the successful completion of the transaction with the owners of BlockFi is the fact that it is FTX money in the form of a $250 million revolving credit line that keeps the BlockFi business afloat.

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