FTX has agreed to acquire BlockFi for up to $240 million
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of U.Today. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Cryptocurrency giant FTX US has agreed to acquire embattled lender BlockFi for up to $240 million, according to Axios. The deal also includes a $400M revolving credit facility.
This is much higher than the rumored figure of $25 million that was reported by CNBC on Thursday.
Yet, it is worth mentioning that the $240 million deal is at the high end of the price range, which means that the final price of the acquisition could decline significantly. Its final price will depend on “performance triggers.”
In a Twitter thread, CEO Zac Prince says that crypto market volatility led to the deal with FTX US. He cited the implosion of hedge fund Three Arrows Capital and competing lender Celsius as the two main catalysts behind his company’s financial troubles.
He claims that it was important to bolster the company’s balance sheet with additional funding in order to protect client funds.
Prince claims that he anticipates “enhancements” to the company’s services through “increased collaboration.” He has stressed that all of the company’s products continue operating normally.