- Crypto alternate FTX is in talks to buy stake in BlockFi, in keeping with stories from the Wall Avenue Journal as we speak.
- BlockFi acquired a $250 million line of credit score from FTX earlier this week, suggesting the agency is in want of funding.
- FTX and associated firms have made different investments and acquisitions over the previous a number of months.
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The favored crypto alternate FTX may quickly buy a stake within the lending agency BlockFi, in keeping with the Wall Avenue Journal.
FTX Is in Talks With BlockFi
FTX and BlockFi are reportedly discussing the opportunity of the previous agency buying a stake within the latter.
Insiders counsel that discussions between the 2 firms are ongoing. No last resolution has been reached and the sum of money underneath dialogue has not been disclosed.
BlockFi secured a $250 million line of credit score from FTX earlier this week. Zac Prince, CEO of BlockFi, acknowledged that the mortgage would strengthen the agency’s steadiness sheet and platform power.
Regardless of Prince’s optimistic spin on the deal, BlockFi’s resolution to hunt out a mortgage appears to level to monetary points. Plus, the agency liquidated its place in Three Arrows Capital (3AC) and reduce 20% of its workforce this month.
These occasions have collectively provoked rumors of low liquidity at BlockFi. As such, FTX’s attainable resolution to buy a stake may present BlockFi with much-needed funding.
FTX Is Investing in Different Corporations
Sam Bankman-Fried, founder and CEO of FTX, has taken an curiosity in plenty of different cryptocurrency firms.
Alameda Analysis, additionally headed by Bankman-Fried, has acquired a stake within the Canadian crypto brokerage Voyager Digital.
Moreover, Alameda prolonged a credit score line of $200 million in money and 15,000 BTC to Voyager this month. These funds appear to be supposed to assist Voyager get well from a failed cope with Three Arrows Capital (3AC), to which it loaned that quantity. Voyager claims that 3AC owed it $667 million.
In different offers this yr, Bankman-Fried invested in Robinhood, gaining 7.6% stake for $648.3 million. FTX acquired Bitvo this month, whereas FTX.US acquired Embed Monetary.
FTX seems to be in a powerful place. CoinGecko ranks FTX because the second-largest absolutely trusted alternate, with $2 billion in buying and selling quantity over the previous 24 hours.
Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and different cryptocurrencies.