BlockFi CEO slams Rumours it would be sold for $25M to FTX

Key Takeaways

  • BlockFi CEO Zac Prince took to twitter to confirm that the firm is not being sold to FTX.
  • CNBC recently reported that crypto billionaire Sam Bankman-Fried’s FTX was likely to buy BlockFi for $25 million- a 99% discount from BlockFi’s most recent private valuation of $4.8 billion.
  • Earlier this week, FTX provided a $250 million emergency line of credit to BlockFi.

Leading crypto lending platform BlockFi’s CEO Zac Prince has rubbished claims that the firm will be sold for $25 Million. Zac took to Twitter 100% confirming that BlockFi will not be sold for $25M. He further encouraged users to trust only details that you hear directly from BlockFi.

Discussions and speculations regarding BlockFi’s future surfaced after CNBC recently reported that crypto billionaire Sam Bankman-Fried’s FTX was likely to buy the struggling firm at a major discount. CNBC referenced anonymous sources to peg the price tag at approximately $25 million. The rumored $25 million is a an astonishing 99% discount from BlockFi’s most recent private valuation of $4.8 billion.

Apart from CNBC report, earlier media reports had also hinted at BlockFi struggling to raise cash despite offering to take a major discount on its valuation, increasing the possibility that it could be forced into bankruptcy. The latest developments comes a week after FTX provided a $250 million emergency line of credit to BlockFi. FTX CEO Sam Bankman-Fried said at the time that the financing would help BlockFi “navigate the market from a position of strength.” 

“FTX is excited to partner with BlockFi, a leader in the digital asset ecosystem, to offer first-class products to customers,” Bankman-Fried said in an earlier statement on the $250 million credit line. Earlier this month, BlockFi revealed that it would cut staff by 20% which Prince stated was owing to a “dramatic shift in macroeconomic conditions.”

The crypto currency economy is going through a bear market as investors and lending platforms are struggling to keep up with market volatility. Higher inflation rates have further increased the possibility of a recession. Cryptocurrency hedge fund Three Arrows (3AC) was ordered to liquidate this week after facing legal challenges from creditors over unpaid debts. Lending Platform Celsius is also currently exploring options for liquidity crisis after suspending withdrawals, swaps, and transfers in mid-June.

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Saniya Raahath

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