BlockFi CEO Denies Claims of Company Being Sold to FTX for $25M
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CNBC had reported earlier today that the company was close to reaching a deal with FTX for $25 million which is 99% lower than the company's $4.8 billion valuation at its most recent funding round. However, the source said that the acquisition price would be able to fluctuate up to $50 million. Terms are allegedly still subject to change, though the deal is expected to be signed by Friday, per the report.
Shortly after the CNBC article went live, BlockFi CEO Zac Prince refuted the claims, saying:
"I can 100% confirm that we aren't being sold for $25 million. I encourage everyone to trust only details that you hear directly from BlockFi."
FTX Gave Out $250 Million Loan To BlockFi
Should the deal go through, the price tag would be notable considering the crypto lender was valued at $4.8 billion in July 2021 and expected to eventually go public. Even after the Terra-led crypto market downturn, BlockFi was still valued in early June 2022 at roughly $1 billion.
In the past week, FTX extended a $250 million line of credit to BlockFi to ensure that its customers were not affected by the company's exposure to Three Arrows Capital, the crypto hedge fund that is reeling from the very recent market meltdown.