FTX Reported to Close in on Buying BlockFi for $25 Million

Crypto exchange FTX is reportedly finalizing terms to buy out the embattled crypto lending platform, BlockFi. However, the exchange is offering just $25 million – a 99% discount on BlockFi’s latest private valuation.

Sources familiar with the situation told CNBC on Thursday that the deal’s term sheet is expected to be signed by the end of the week.
The confidential agreement would see BlockFi acquired for $25 million, though that number could change by Friday.
If closed, the deal would see equity investors torched. During last year’s bull market, BlockFi saw multi-billion dollar valuations, with its latest valuation reported at $4.8 billion, according to Pitchbook.
One of the sources said those investors are already “wiped out,” and writing off their losses.
A source added that there is “more than one deal on the table.”
According to another source, getting the deal signed by Friday is a high priority, given that it also marks the end of the quarter.
FTX told CNBC that it would “not be commenting on the matter,” when asked. Similarly, BlockFi did not respond to requests for comment.
BlockFi is just one of many firms seeking financial support after the crypto markets tanked in June. VC firm 3AC is already eying asset sale and bailout solutions, an offer they’ve already been denied by Binance.
BlockFi has already been granted a $250 million revolving credit line by FTX, designed to help the firm “navigate the market from a position of strength.”

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