Crypto Exchange FTX Acquires Stake in Lending Firm BlockFi: Report

The top crypto move is said to be acquiring a stake in beleaguered crypto lending firm BlockFi as the crypto industry faces a slump.

According to The Wall Street Journal, FTX is currently in talks with BlockFi regarding stake in the company.

The acquisition talks came as BlockFi secured a $250 million line of credit from FTX, which the crypto industry has widely recognized as a “bailout.”

“BlockFi does not comment on market rumours. We are still negotiating the terms of the agreement and cannot share more information at this time. We plan to share more information about the terms of the agreement with the public at a later date,” a BlockFi spokesperson said. Cointelegraph.

BlockFi has signed an agreement with FTX to secure a $250 million revolving credit facility with “access to capital that further strengthens our balance sheet and the strength of our platform,” said BlockFi CEO Zac Prince.

“The credit facility proceeds are intended to be contractually subordinate to all customer balances on all account types and will be used as needed,” he said in a tweet last week.

Throughout the market volatility of the past few weeks, “I am incredibly proud of the performance of our team, our platform and the risk management protocols,” he added.

This deal also unlocks future collaboration and innovation between BlockFi and FTX.

FTX CEO Bankman-Fried, who has remained silent on the BlockFi deal, has criticized venture capitalists for their reluctance to provide funds to crypto startups during the economic downturn.


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(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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