According to the report, Blockfi has a new bidder in Morgan Creek
According to the report, Blockfi has a new bidder in Morgan Creek
- The FTX's proposal gives him the opportunity to acquire Blockfi at a price of zero, Mark Yusko told the investors
- he said he was working on securing a stock offer for blockfi
The asset manager Morgan Creek Digital wants to compete with the support of FTX for the battered crypto loan.
The investment company wants to raise $ 250 million from investors in order to acquire a majority stake in Blockfi. Coindesk reported on Sunday a leaked investor call.
According to reports, Morgan Creek, a long-time supporter of Blockfi, developed this plan after FTX announced a credit line of $ 250 million for the lender last week. According to the leaked audio, Mark Yusko, managing partner of Morgan Creek Digital, said that he had "phoned the whole day".The crypto billionaire and FTX CEO Sam Bankman-Fried was called the "lender of the last instance" because he tried to save the battered industry. In a Twitter on Tuesday he said that his company is committed to protecting the ecosystem digital assets and its customers. Accordingly, several risk capital funds are looking for ways to provide blockfi funds and to strengthen its balance sheet in the middle of the shaken market.
According to Yusko, the $ 250 million loan contract with Blockfi gives the occasion for concern for existing shareholders, including Morgan Creek-it offers FTX the option of purchasing blockfi free of charge. If the crypto exchange continues with this option, all existing shareholders from Blockfi, investors in previous venture rounds, management and employees would be liquidated with stock options.
If FTX had this option after extending its credit line, only investors in the oldest tranche of Blockfi's latest remedial procurement would receive a minimal amount of their investment, said Yusko. Morgan Creek would be among those who would have been in a difficult situation.
This could make the FTX deal appear difficult. But there was a reasonable reason why the founders of Blockfi accepted the conditions, said Yusko, according to Coindesk. From the many emergency financing offers that the company reported reportedly, FTX's deal was the only one who would not reduce the role of customer assets.
That means that if Blockfi made another offer, his inserts would have to wait until the new lender was paid back first. Yusko did not mention which other companies turned to Blockfi with rescue packages. In addition, the lender had not received any equity financing options until then.
The only other option, Yusko told investors at the conference call, is that Blockfi procures a corresponding amount of equity. He said he would expect a 10 percent chance that this idea will work, "but not zero".
yusko also told an investor that he was open to a deal that would make it possible to spend ftx and Morgan Creek on each of their capital.
So far, Yusko has reported to an investor who could issue a check for $ 100 million, and with two others who could finance up to $ 50 million. He warned that the efforts to offer an offer are anything but safe.Both Morgan Creek and Blockfi did not immediately answer the request from Blockworks for comment.
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The contribution "Blockfi has a new bidder in Morgan Creek, Report Says" is not a financial advice.
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