BlockFi’s boss denied a report Thursday that FTX was close to buying his embattled crypto lender for just $25M during ongoing crypto winter conditions & plunging BTC prices that have rattled investors
BlockFi CEO Zac Prince spoke out shortly after a report said that crypto billionaire Sam Bankman-Fried’s FTX was days away from buying the struggling firm at a major discount.
The rumored $25 million is a 99% discount from BlockFi’s most recent private valuation of $4.8 billion.
Lots of market rumors out there – I can 100% confirm that we aren’t being sold for $25M.
I encourage everyone to trust only details that you hear directly from @BlockFi,” Prince said. “We will share more w you as soon as we can.”
News reported that FTX is close to buying BlockFi for $25 million in a deal that was “expected to be signed by the end of the week.” One source noted the final price tag could shift by Friday.
Another source told the outlet that BlockFi’s equity investors are “wiped out” as the lender struggles to survive a downward spiral in cryptocurrency prices.
Prince’s tweet did not explicitly rule out the possibility of a sale for BlockFi, which reached an agreement with FTX on a $250 million emergency line of credit just last week.
BlockFi representatives declined to provide further comment on a potential sale.
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