FTX closes in on a deal to buy embattled crypto lender BlockFi for $25 million in a fire sale
— Reported, Fire sale comes, Based blockfi, Speaks, Source told cnbc, One source, Strength, Extreme market conditions .", Live business day programming, Meet margin calls — 1 min read
FTX is swooping in to buy crypto lender BlockFi for pennies on the dollar, sources say. Term sheet is almost over the finish line and expected to be signed by the end of the week. FTX will pay roughly $25 million — 99% below BlockFi's last private valuation. BlockFi was last valued at $4.8 billion, according to PitchBook. The fire sale comes a week after FTX provided a $250 million emergency line of credit to BlockFi. It's the latest fallout for crypto lending companies amid plunging crypto asset prices. Funds have struggled with liquidity issues as counterparties fail to meet margin calls. A major cryptocurrency hedge fund Three Arrows Capital has fallen into liquidation, CNBC reported earlier. Source