Cryptocurrency exchange FTX is close to purchasing digital asset lender BlockFi’s remaining assets for $25 million, according to CNBC.
Prema izvora close to the matter, BlockFi’s equity investors were wiped out and are now writing their positions off at a loss. In addition, the FTX deal could take multiple months to close, opening up the possibility that the price tag could shift over that period. In June 2021, BlockFi had a reported valuation of $5 billion.
BlockFi CEO Zac Prince has since denied these rumors, taking to Twitter on June 30 to refute speculation that the company is being sold for $25 million.
Puno tržišnih glasina – mogu 100% potvrditi da se ne prodajemo za 25 miliona dolara.
Ohrabrujem sve da vjeruju samo detaljima od kojih direktno čujete @BlockFi.
Više ćemo podijeliti s vama čim budemo mogli.
- Zac Prince (@BlockFiZac) Juni 30, 2022
Earlier this year, BlockFi had over 1 million clients, over $10 billion in assets and deposits, and had distributed more than $700 million in crypto rewards and interest. However, BlockFi’s fortunes quickly soured after it reportedly became a major creditor of the now troubled hedge fund Three Arrow Capital, also known as 3AC. As a result, it was forced to liquidate 3AC’s positions amounting to $1.33 billion, likely at a severe loss as the bear market intensified in June.
The situation was exacerbated by 3AC posting collateral for the loan in $400 million worth of Grayscale Bitcoin Investment Trust (GBTC) shares, which often trade at a discount or premium to spot Bitcoin (BTC) prices. At the time of liquidation, GBTC shares were trading at a 34% discount to the net asset value of its Bitcoin holdings, which plunged further as BlockFi began closing the position.
Povezano: FTX may be planning to purchase a stake in BlockFi
Earlier this month, BlockFi said it would fire 20% of its 850-strong staff due to profitability woes in the short term. Just last week, FTX had extended a $250 million line of credit to BlockFi and denied rumors that it was acquiring the ill-fortuned firm.
Update: Added Zac Prince’s latest Twitter update denying the company is being sold for $25 million.
Source: https://cointelegraph.com/news/ftx-on-the-verge-of-purchasingblockfi-in-25m-in-fire-sale