FTX US, the US division of the crypto exchange led by billionaire <a href="https://www.cryptoknowmics.com/news/sam-bankman-fried-is-the-sole-largest-shareholder-of-voyager-digital/" target="_blank" rel="noopener">Sam Bankman-Fried</a>, signed an agreement with BlockFi that includes an option to purchase the crypto lender for as much as $240 million, BlockFi Chief Executive <a href="https://twitter.com/BlockFiZac" target="_blank" rel="nofollow noopener">Zac Prince</a> said on Friday.

The deal price, however, is based on certain performance targets. The agreement also involves a $400 million revolving line of credit, for a total price of $680 million.

https://twitter.com/BlockFiZac/status/1542934040092856321

The BlockFi CEO also stated that the company looked into several different options for adding capital to its balance sheet and salvaging its operations. However, Prince says discussions with FTX US were the most productive, and the two firms moved forward with negotiations.
<blockquote><em>"Ultimately, we found a great partner in FTX US, who shares our commitment to clients. This represents the best path forward for all BlockFi stakeholders and the crypto ecosystem as a whole,"  </em>the CEO wrote in his tweet.<em>
</em></blockquote>
<h2>BlockFi's Loss Minor to Other Lenders</h2>
BlockFi said it has suffered $80 million in losses "which is a small fraction of losses publicly reported by other lenders." Its losses with the hedge fund will be part of Three Arrows' ongoing bankruptcy case, the company said.

BlockFi was last valued at roughly $4.8 billion with $1.2 billion in funding from investors that include Bain Capital, Coinbase Ventures and Tiger Global, according to data from PitchBook. A deal on the terms described in the reports would all but wipe out BlockFi's shareholders.

FTX US Reaches Deal to Buy Troubled Crypto Lender BlockFi

FTX US signed an agreement with BlockFi that includes an option to purchase the crypto lender for as much as $240 million, BlockFi CEO Zac Prince said.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

FTX US Reaches Deal to Buy Troubled Crypto Lender BlockFi

Top Picks