Not way more than a 12 months after elevating funds at a $3 billion valuation, cryptocurrency participant BlockFi is on the verge of being acquired by FTX in a deal price as little as $25 million, in accordance with CNBC.
An settlement could possibly be signed by the tip of the quarter on Friday, says CNBC, citing sources.
In a tweet, BlockFi CEO Zac Prince, disputed the $25 million price ticket:
Numerous market rumors on the market – I can 100% affirm that we aren’t being offered for $25M.
I encourage everybody to belief solely particulars that you simply hear straight from @BlockFi.
We’ll share extra w you as quickly as we are able to.
— Zac Prince (@BlockFiZac) June 30, 2022
The potential acquisition comes days after FTX prolonged a $250 million emergency line of credit score to BlockFi.
That got here simply weeks after BlockFi was reported to be closing in on a funding spherical at a $1 billion valuation and introduced it was slicing 20% of its workforce.
With the trade reeling within the face of a crypto winter and wider financial downturn, FTX has discovered itself in a powerful place.
It just lately agreed to purchase Alberta-based outfit Bitvo for a push into Canada, whereas earlier as we speak The Block reported that it has handed on a deal to purchase Celsius after encountering a $2 billion gap within the troubled agency’s stability sheet.
The crypto big has even been rumoured to be wanting into shopping for Robinhood, though FTX CEO Sam Bankman-Fried – who owns a 7.6% stake within the buying and selling app – says there are “no lively M&A conversations”.