Update, July 3 at 10:18 UTC. BlockFi Co-Founder Zac Prince said in a tweet that the company signed definitive agreements with FTX US for selling at a "variable price" of up to $240 million based on "performance triggers."
Cryptocurrency exchange FTX is reportedly set to acquire crypto lender BlockFi for $25 million, CNBC has learned, citing three sources familiar with the matter. According to the report, the parties are planning to sign the deal by the end of this week.
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The conditions of the deal remain unclear, as the exchange is about to buy BlockFi for 99% below the company's last private valuation. After the latest investment round, BlockFi valuation hit $4.8 billion.
A person close to the matter said that the acquisition could take several months to close. It is also unclear why BlockFi choose FTX as people close to the deal said that there was "more than one deal on the table."
iHodl earlier reported that BlockFi secured a $250 million revolving credit facility from FTX. BlockFi Co-Founder Zac Prince said that the credit will provide the company with access to capital that further bolsters its "balance sheet and platform strength."
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