Krypto exchange FTX takes over the battered lender Blockfi
Krypto exchange FTX takes over the battered lender Blockfi
- ftx had previously awarded a credit line of $ 250 million in blockfi to stabilize its bleeding cash flows
- The crypto loan was one of several operators of recent times that were surprised by crypto markets that were surprised
According to three sources familiar with the matter, the cryptocurrency exchange FTX has accelerated its shopping spree with a soon -to -finish purchase of the stricken lender for digital assets Blockfi.
The step takes place after FTX founder Sam Bankman-Fried has provided an emergency money injection of $ 250 million for blockfi, which-like numerous competitors-is deep under water in view of the market turbulence around Celsius and Three Arrows Capital.Blockfi was a great lender for Three Arrows, which is currently undergoing a judicial restructuring.
"Three arrows really caused this infection," said one source.
The step was accelerated by competing cryptoasset managers that submitted competing offers for Blockfi-as these operators tried to prevent FTX from using converted bodies that had watered down their own shares in the company.
The takeover for Blockfi would probably have additional layoffs, said sources, and Bankman-Fried was primarily interested in benefiting from the technology to benefit from the company's investors and counterparts. A spokesman for Blockfi told Blockworks that the company "do not comment on market rumors" and denied the prospect of personnel loss, citing a statement by the company's CEO.
Earlier reports that cited a leaked investment call by the Blockfi supporter Morgan Creek Capital said that the deal would trigger a large number of layoffs.
cnbc first registered the deal, citing anonymous sources, at about 25 million To set US dollars-an astonishing decline of 99 % compared to its previous rating. The block earlier reported the likelihood of buying for the same amount.
sources for block works asked for anonymity to discuss sensitive business relationships. A spokesman for FTX did not immediately have a comment.
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The contribution Crypto Exchange FTX for the acquisition of the besieged lender Blockfi is not a financial advice.