FTX concludes an agreement to take over Blockfi for up to $ 240 million
FTX concludes an agreement to take over Blockfi for up to $ 240 million
- Bankman-Fried says that he is “much more excited to save customers as shareholders”
- The takeover of Blockfi by FTX could lead to possible layoffs
ftx has completed an expected deal with Blockfi on Tuesday to acquire the battered crypto loan for up to $ 240 million, depending on the performance losses of the startup.
The agreement also includes a revolving credit line of $ 400 million with a total price of $ 620 million.
yesterday we signed the final agreements with FTX US, subject to the consent of the shareholders
1. A revolving credit facility of $ 400 million, which is subordinate to all customer funds, and
2. An option to acquire Blockfi at a variable price of up to $ 240 million based on performance triggers.- Zac Prince (@Blockfizac) 1. July 2022
Blockworks reported that the takeover will probably lead to further layoffs at Blockfi, since FTX mainly competes with the technology, investors and counterparts of the credit startup. The prospect of immediate job losses were later Disputed from Blockfi-CEO ZAC Prince and ftx-CEO sam Bankmann-Fried .
Although Prince did not announced the lower end of the takeover, CNBC reported that the deal was laid down $ $ . Prince denied the reporting of CNBC, which he described as unfounded.
Market volatility after the fall of Celsius and Three Arrows Capital (3AC) brought the lenders into a difficult situation for cryptocurrencies.
"Although we are one of the first to accelerate and secure all the collateral as one of the first of our over-the-fed loans, we suffered losses of ~ $ 80 million, which is a fraction of the losses reported by other," tweeted Prince.
jpmorgan researcher predict that debt reduction has already progressed and-with the help of crypto companies with deep pockets that intervene in order to relieve the infection-the debt-related chaos could soon end.
"We try to find out who the responsible actors who built up good business had a sustainable model and were able to use short-term liquidity that could help protect customer funds," Bankman-Fried told Bloombergtv.
Bankman-Fried added: The company is "much more excited to save customers as shareholders".
If Blockfi's assessment of over $ 240 million, the shareholders could not reject the takeover of Blockfi.
let us deselect it. It consists of two elements:
-a call option certificate with a variable exercise price that depends on indefinite performance causes
-a subordinate credit facility.
Both are bad news for regular shareholders. https://t.co/00fiuaabrk- Cassandra Schassreude (@Frances_coppola) 1. July 2022
"The focus is not on how much shareholder value we can deliver," said Banksman-Fried. "This is how we protect customers and I think that implies quite different things."
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The contribution FTX reaches the contract for the transfer of Blockfi for up to $ 240 million is not financial advice.
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