April 21, 2024

The media learned about FTX's plans to acquire a stake in BlockFi

The media learned about FTX's plans to acquire a stake in BlockFi

Cryptocurrency exchange FTX is in negotiations to buy a stake in the BlockFi landing platform. Wall Street reports thisJournal.

According to the publication, the parties have not yet reached a final agreement.

On June 21, BlockFi signed a memorandum of understanding with FTX for a $250 million revolving line of credit. Analyst FatMan called the deal a "deal with the devil."

A BlockFi spokesperson told CoinDesk that the company "does not comment on rumours."

“We are still discussing the terms of the deal and cannot share additional information at this time. We expect details on the terms of the deal to be made public at a later date,” he said.

In June, the media reported that BlockFi was preparing to close a new funding round at a $1 billion valuation instead of the previously planned $5 billion. After that, the company announced the dismissal of a fifth of the staff.

Amid the recent market turbulence, the crypto lending platform liquidated at least some of the positions of hedge fund Three Arrows Capital, according to media reports.

How Celsius, 3AC and stETH problems will affect the price of Ethereum and the cryptocurrency market

Amid unfavorable developments in the industry, FTX CEO Sam Bankman-Fried spoke about efforts being made to mitigate negative market conditions due to the problems of Celsius and Three Arrows Capital. 

On June 18, cryptocurrency broker Voyager Digital announced that Alameda Research has provided it with a 200 million USDC loan and a 15,000 BTC (~$300 million) revolving line of credit.

Recall that at the end of May, Bankman-Fried promised to spend "billions" on the purchase of shares in other companies.

Read ForkLog bitcoin news in our Telegram - cryptocurrency news, courses and analytics.