26 Jun FTX Reportedly Planning to Acquire a Stake in BlockFi
Major cryptocurrency exchange FTX is looking to purchase a stake in struggling digital asset lender BlockFi, shortly after the latter received a $250 million revolving credit from the SBF-spearheaded company.
According to a report by the Wall Street Journal, anonymous sources revealed that talks between FTX and BlockFi were still ongoing, and no decision has been made.
As recently reported by CryptoPotato, BlockFi CEO Zac Prince revealed that the crypto lender took a revolving credit worth $250 million from Sam Bankman-Fried’s FTX. Prince further said:
“This agreement also unlocks future collaboration and innovation between BlockFi & FTX as we work to accelerate prosperity worldwide through crypto financial services. This is a significant step forward in our commitment to the strength and accessibility of crypto markets.”
The BlockFi head later explained that the credit facility from FTX was both an “offensive and defensive move,” adding that the funds will be used to safeguard clients’ funds. Before the loan, BlockFi reduced its workforce by 20% in response to the bearish cryptocurrency market.
Meanwhile, billionaire Sam Bankman-Fried, also known as SBF, and his companies have offered bailouts to crypto companies affected by the market pullback.
Quantitative cryptocurrency trading firm Alameda Research issued a loan worth over $500 million in cash, USDC, and bitcoin to Voyager Digital. SBF earlier suggested that major cryptocurrency firms should step in to help “stem contagion.”