FTX US puts forward conditions to buy the BlockFi platform for $240 million
The exchange has listed a number of indicators that the company needs to achieve by a certain date in order to increase the amount of the deal
23.08.2022 - 14:10
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What’s new? The US division of the FTX exchange has allowed the purchase of crypto platform BlockFi for just $15 million. Previously, it had been speculated that the value of the deal could reach $240 million. BlockFi CEO Zac Prince said that the amount depends on performance metrics. One of them is getting Securities and Exchange Commission (SEC) approval by December 31 for the BlockFi Yield product, in that case, the exchange will add $25 million. FTX US will pay an additional $100 million if the platform's client assets reach $10 billion by October 2023.
Information on CoinDesk's website
What is known about BlockFi? In July, FTX said it would give BlockFi a $400 million revolving loan with the option to buy back the platform for up to $240 million, depending on its economic performance.
BlockFi was founded in 2017. The platform provides lending and credit services, as well as interest-bearing deposit options. The company, which was valued at $4,8 billion in July 2021, has been hit hard by liquidity problems along with cryptocurrency lenders Celsius, Voyager and Babel Finance and the CoinFLEX exchange due to a sharp market crash this year.
How does FTX operate? Exchange CEO Sam Bankman-Fried has repeatedly acted as a lender to companies experiencing liquidity problems. In addition to numerous loans of hundreds of millions of dollars, Bankman-Fried's companies also sought to acquire troubled assets. In July, FTX was in talks to buy the South Korean platform Bithumb.
In August, online broker Robinhood cut its offer to buy cryptocurrency platform Ziglu by 57% due to unfavorable market conditions. The initial offer of $170 million was made in April, but the company revised it in August, lowering the price to $72,5 million.
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