FTX Closes in on a Deal To Buy Embattled Crypto Lender BlockFi for $25 Million in a Fire Sale

FTX is swooping in to buy crypto lender BlockFi for pennies on the dollar, CNBC reported Thursday, citing sources familiar with the matter. From a report: The term sheet is almost over the finish line and expected to be signed by the end of the week, according to one source, who asked not to be named because the deal discussions were confidential. FTX will pay roughly $25 million -- 99% below BlockFi's last private valuation. Jersey City, New Jersey-based BlockFi was last valued at $4.8 billion, according to PitchBook.

An acquisition could take multiple months to close, and the price tag could shift between now and Friday, a source said. Friday also marks the end of the quarter, which the person said was a catalyst for getting a deal signed. The Wall Street Journal first reported that FTX was seeking an equity stake in the company, while the Block reported this week that an outright deal was in the works. Update: BlockFi has denied the reporting. " I can 100% confirm that we aren't being sold for $25M," the company chief executive said.

Bailing Out Friends

[Luthair]

with account holders money? Or is FTX a company that doesn't pretend its all a giant slush fund like Coinbase?

What currency are they paying with?

[muh_freeze_peach]

Surely they wouldn't put that trust in such an important purchase without the blockchain involved?

Recruitment for the next batch of the greater fool

[TightLines]

Meanwhile⦠Bitcoin broke back below $19,000 this morning to end its worst first-half of a year ever (and worst quarter since Q3 2011... One can only laugh at the greater fools as the panic sets in⦠while the biggest of them all sit back and hope they will be bailed out by the old slogans of 2008/09 - Contagion, to big to fail, etc⦠are we hearing those words coming from the mainstream, corporate puppets, financial press yet?

I'll buy

[Opportunist]

I can pay in crypto, right?

Please reply fast, my purchasing power may depend on a speedy reply.

"Valuation"

[sTERNKERN]

FTX will pay roughly $25 million -- 99% below BlockFi's last private valuation. You are worth what others are willing to pay for You. All the inflated numbers are just smoke and mirrors.

"we aren't being sold for $25M"

[splutty]

Yet.

Actual price $24,999,999?

[misnohmer]

"We are not being sold for $25M" means nothing. The statement is true if the price is a penny less, or more, or any other amount. Let's see if the source of the statement comes back with something more meaningful, like "We are being sold for more less than some price" or perhaps an actual price.