BlockFi and FTX US announce an agreement with an "option to purchase" for $240M

Depricated as of Oct 2022

Some CRYPKYP functionalities are depricated as of October 2022 and will no longer be populated until further development and future version.
Although all here is visible and interactable you can not Contribute to those articles.
Try looking at other information on the Platform and Contributing there!

Have a great day,

BlockFi and FTX US announce an agreement with an “option to purchase” for $240M

BlockFi and FTX US announce an agreement with an "option to purchase" for $240M
Source: CoinTelegraph
1656756453 02 Jul / 10:07

The agreement between FTX US and BlockFi grants the crypto derivatives exchange the chance to acquire the loan company.

Zac Prince, CEO of BlockFi, said on Friday that the company has inked agreements with FTX US for a $400 million revolving credit facility and the option to buy BlockFi "at a variable price of up to $240 M based on performance triggers." According to BlockFi's CEO, the acquisition was made to " bolster liquidity and protect client funds."

The contracts are still contingent on shareholder approval. Prince stated that the decision was influenced by market volatility, "especially market movements relating to Celsius and 3AC," which had a detrimental impact on BlockFi. The crypto lending site lost over $80 million in the week after Celsius halted withdrawals, and after evaluating "several unappealing possibilities" for recovery, it joined with FTX US.

“All of our products and services — including funding and withdrawals, our trading platform, credit card, and global institutional services — continue to operate normally, with incremental capital strength behind them,” stated Prince.

In a blog post published Friday, BlockFi refuted Thursday’s allegations that FTX wanted to acquire the company for $25 million. According to the CEO, the sum of the $400 million credit facility, $240 million acquisition price, and “other potential considerations” for a firm valued at $5 billion in June 2021 was $680 million. Prince implied that the claim resulted from “an inappropriately leaked call” and “purely personal conjecture by a single party.”

In June, BlockFi was one of the first companies to liquidate part of Three Arrows Capital’s assets after the business failed to make margin calls from its lenders. In response to the market slump and high price volatility, the crypto lending company stated it would lay off 20% of its 850-person workforce, retaining 600 employees. It is unclear if the acquisition of FTX US would alter this decision.

Last News and Media
CRYPKYP contain links to third-party websites, resources, and advertisers. CRYPKYP does not control, sponsor, recommend or otherwise accept responsibility for any third-party content because we are not responsible for the availability of these outside resources or their contents or privacy practices. It will help if you direct any concerns regarding any third-party content to such a third party. We don't accept responsibility for the content of external websites linked to through the Site or the Services. Third-party content is accessed at the user's own risk. CRYPKYP distributes content from third-party publishers as indicated on the site from time to time mainly in Airdrops, News / Media, Whale Alerts, and Rumors. In these circumstances, CRYPKYP only provides limited stylistic input to the content. CRYPKYP does not verify and takes no responsibility for the accuracy of the content provided by any such third-party publishers.