FTX US Reaches Deal to Buy Troubled Crypto Lender BlockFi
Table of contents
The deal price, however, is based on certain performance targets. The agreement also involves a $400 million revolving line of credit, for a total price of $680 million.
The BlockFi CEO also stated that the company looked into several different options for adding capital to its balance sheet and salvaging its operations. However, Prince says discussions with FTX US were the most productive, and the two firms moved forward with negotiations.
"Ultimately, we found a great partner in FTX US, who shares our commitment to clients. This represents the best path forward for all BlockFi stakeholders and the crypto ecosystem as a whole," the CEO wrote in his tweet.
BlockFi's Loss Minor to Other Lenders
BlockFi said it has suffered $80 million in losses "which is a small fraction of losses publicly reported by other lenders." Its losses with the hedge fund will be part of Three Arrows' ongoing bankruptcy case, the company said.
BlockFi was last valued at roughly $4.8 billion with $1.2 billion in funding from investors that include Bain Capital, Coinbase Ventures and Tiger Global, according to data from PitchBook. A deal on the terms described in the reports would all but wipe out BlockFi's shareholders.
