In response to fresh accusations that FTX is buying BlockFi for a pitiful sum of $25 million, BlockFi CEO Zac Prince swiftly denied the claims, calling them “market rumors”.
According to a CNBC report, cryptocurrency exchange FTX is reportedly planning to purchase BlockFi for only $25 million, 99.5% less than its prior valuation.
Although the agreement is anticipated to be inked by Friday, the terms are supposedly still susceptible to revision.
Given that BlockFi was valued at $4.8 billion in July 2021 and was anticipated to go public, this mere price would be substantial.
As the rumors started escalating Prince came in tweeting, “I can 100% confirm that we aren’t being sold for $25M. I encourage everyone to trust only details that you hear directly from BlockFi.”
The CNBC report suggests that BlockFi’s equity investors have been wiped out and are currently writing off the value of their losses.
Just two weeks back, BlockFi secured a $250M credit line from FTX after signing a term sheet providing BlockFi with access to further capital.
Also Read: Voyager Digital Issues Notice of Default to Three Arrows Capital
Long before that, Voyager Digital obtained a revolving line of credit from Alameda Research, the quant trading company that FTX CEO Bankman-Fried founded. Alameda purchased 14.96 million shares for $2.34 each.
Anyways let us watch out if FTX is really acquiring BlockFi soon or if it is really, as the BlockFi CEO stated “just rumors”!!
