FTX Close to Buying BlockFi for Just $25M

The beleaguered crypto lender was reportedly close to finalizing a down round valuing it at $1 billion earlier this month.

AccessTimeIconJun 30, 2022 at 5:57 p.m. UTC
Updated Jun 30, 2022 at 8:56 p.m. UTC

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

Tracy is a deputy managing editor at CoinDesk. She owns BTC, ETH, MINA, ENS, various stablecoins, and some NFTs.

Crypto exchange FTX is close to signing a deal to purchase struggling crypto lender BlockFi for $25 million, according to a person familiar with the matter. The news was first reported by CNBC.

  • The deal is expected to be signed by the end of the week, the person familiar with the matter told CoinDesk.
  • In response to the reports, BlockFi CEO Zac Prince tweeted this afternoon that "I can 100% confirm that we aren't being sold for $25M. I encourage everyone to trust only details that you hear directly from @BlockFi. We will share more [with] you as soon as we can."
  • Earlier this month, BlockFi was reportedly set to close a down round of funding at a valuation of $1 billion, compared to its previous valuation of $3 billion in March of last year.
  • FTX had previously given a $250 million credit facility to BlockFi. The lender said in mid-June it was cutting about 20% of its workforce, or roughly 170 people.

UPDATE (June 30, 18:16 UTC): Removes "report" from headline and adds information in first paragraph.

UPDATE (June 30, 19:03 UTC): Adds Zac Prince tweet in second bullet point.


Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

CoinDesk - Unknown

Tracy is a deputy managing editor at CoinDesk. She owns BTC, ETH, MINA, ENS, various stablecoins, and some NFTs.

CoinDesk - Unknown

Nelson Wang is CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

CoinDesk - Unknown

Tracy is a deputy managing editor at CoinDesk. She owns BTC, ETH, MINA, ENS, various stablecoins, and some NFTs.