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Source Says FTX Plans To Acquire BlockFi For $25 Million, But Zac Prince Denies Rumors

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The source assured that FTX would pay about USD $25 million to acquire BlockFi, a figure that is 99% below the company’s valuation. Given the rumours, CEO Zac Prince denied that a commercial agreement would be finalized for that price, but he did not deny that the company is for sale.

  • Source assures that FTX will buy BlockFi for USD $25 million.
  • The offering is well below the $4.8 billion BlockFi was trading at.
  • The market crash is apparently causing BlockFi big losses.
  • BlockFi CEO Zac Prince denied that the company is going to be sold for $25 million.

A source with knowledge of the case revealed that the US-based international exchange , FTX, would be contemplating acquiring the cryptocurrency-based financial services company BlockFi, which they would be buying at a price well below its listing.

FTX is about to buy BlockFi, reveals source

The information was published by the CNBC news agency , which indicates that both companies have already established the respective terms and that the acquisition could be completed by the end of this week.

But the most remarkable thing is the price for which the agreement in question would have been finalized, since the source indicated that FTX would pay approximately USD $25 million, a figure that is 99% below the most recent valuation of BlockFi, the which is located over USD $4,800 million.

Although it is not a secret that FTX is interested in acquiring a shareholding in the cryptocurrency-based financial services company, the source indicated that part of the rush to finalize this agreement is because today the second quarter of the year closes, which is why which there is much more pressure to finalize this acquisition. The market crash notably compromised BlockFi’s operations, to the point that the company chose to lay off part of its workforce in order to continue operating relatively normally.

The source also clarified that such a deal could take several months to close, so the price could change between now and the time it finally closes. At the time of publication, FTX has not commented on the matter.

Keep in mind that FTX opened a $250 million credit facility with BlockFi to support its operations, but the exchange’s CEO, Sam Bankman-Fried, recently warned that several major crypto firms could be “secretly insolvent.”

FTX’s Sam Bankman-Fried Warns More Crypto Firms Are “Secretly Insolvent”

BlockFi CEO denies that the sale is for USD $25 million

Who did come forward to deny part of the rumors was the CEO of BlockFi, Zac Prince, who denied that the company was going to be sold for USD $25 million.

“There are a lot of market rumors out there – I can confirm 100% that we are not going to be sold for $25 million. I invite everyone to trust only the details they hear directly from @BlockFi. We will be sharing more information as soon as we can.”

Previously, a BlockFi spokesperson assured that the company would not comment on such market rumors. However, neither the company nor its CEO denied that there is an intention to purchase by FTX.

Other sources assure that BlockFi ‘s situation is quite delicate, so they are considering several offers that have been presented by other entities interested in acquiring the company.

Regarding FTX, Bankman-Fried indicated that they are very interested in deepening their expansion plan despite the bear market, so they would be making important moves throughout these weeks.

It is worth noting that this week rumors also circulated about the possible purchase of Robinhood by FTX. However, it was Bankman-Fried himself who denied such rumors.

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