FTX Close to Buying BlockFi for Just $25M

The beleaguered crypto lender was reportedly close to finalizing a down round valuing it at $1 billion earlier this month.

AccessTimeIconJun 30, 2022 at 5:57 p.m. UTC
Updated May 11, 2023 at 6:48 p.m. UTC

Crypto exchange FTX is close to signing a deal to purchase struggling crypto lender BlockFi for $25 million, according to a person familiar with the matter. The news was first reported by CNBC.

  • The deal is expected to be signed by the end of the week, the person familiar with the matter told CoinDesk.
  • In response to the reports, BlockFi CEO Zac Prince tweeted this afternoon that "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. We will share more [with] you as soon as we can."
  • Earlier this month, BlockFi was reportedly set to close a down round of funding at a valuation of $1 billion, compared to its previous valuation of $3 billion in March of last year.
  • FTX had previously given a $250 million credit facility to BlockFi. The lender said in mid-June it was cutting about 20% of its workforce, or roughly 170 people.
  • Meme Coin Liquidity Hits Record High
    00:46
    Meme Coin Liquidity Hits Record High
  • How Ledger Stax Plans to Make Self-Custody More Mainstream
    16:42
    How Ledger Stax Plans to Make Self-Custody More Mainstream
  • Why Dogecoin Is a 'Weird' Investment
    16:39
    Why Dogecoin Is a 'Weird' Investment
  • AI Tokens Surge as Nvidia Becomes World’s Most Valuable Company
    00:47
    AI Tokens Surge as Nvidia Becomes World’s Most Valuable Company
  • UPDATE (June 30, 18:16 UTC): Removes "report" from headline and adds information in first paragraph.

    UPDATE (June 30, 19:03 UTC): Adds Zac Prince tweet in second bullet point.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Nelson Wang

    Nelson Wang was CoinDesk's news editor for the East Coast. He holds BTC and ETH above CoinDesk's disclosure threshold of $1,000.

    Tracy Wang

    Tracy was the deputy managing editor at CoinDesk. She owns BTC, ETH, MINA, ENS and some NFTs.


    Read more about