Just days after rumours emerged that FTX was mulling a decision to attempt to acquire Robinhood (NASDAQ: HOOD), it appears that the crypto exchange has other firms in its sights as well. Its being reported this afternoon that the company is closing to finalizing a term sheet to acquire crypto lender BlockFi.
As per CNBC, a deal on the matter is expected to be signed by weeks end. The move follows after FTX provided a $250 million line of credit to the lender, which was to assist the lender to “navigate the market from a position of strength,” as per FTX founder Sam Bankman-Fried.
Perhaps the most shocking aspect of the potential transaction is the purchase price – FTX is reportedly to pay just $25 million for BlockFi, which last summer held a valuation of $4.8 billion. The price as a result points to a 99% decline in the value of the lender, if the transaction proceeds. The firm is reportedly searching for other potential suitors in the space given the low transaction value.
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The report also comes just hours after it was reported that the crypto exchange passed on a potential deal to acquire Celsius, another well-known crypto lender in the space. FTX reportedly passed on a deal on account of a “$2 billion hole” within the balance sheet of Celsius. Celsius, its being reported, was also difficult to deal with on the matter.
Information for this briefing was found via CNBC, CoinDesk and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
