Ledn Makes Competing Bid for Troubled Crypto Lender BlockFi: Report
BlockFi CEO Zac Prince denied a story that his company had agreed to a sale to FTX for just $25 million.
Roughed-up cryptocurrency lender BlockFi – reportedly in talks over a sale to FTX, the crypto exchange led by billionaire Sam Bankman-Fried – has been approached with a competing deal by a group that includes crypto lending peer Ledn, Bloomberg reported late Thursday evening.
Whereas FTX's reported offer is for a full acquisition, Ledn's involves a fresh funding round, according to the report, which cited people with knowledge of the matter. The funding would supposedly be for up to $400 million and include $50 million in equity, which would Ledn a sizable ownership stake in BlockFi.
"Ledn is currently evaluating a number of opportunities to broaden its leadership in digital asset lending and beyond ... At the moment, we cannot share any additional details," Ledn CEO Adam Reeds said in a statement to Bloomberg:
BlockFi didn't immediately respond to a request for comment.
BlockFi CEO Zac Prince on Thursday afternoon took to Twitter to deny news first reported by CNBC that his company had agreed to a sale to FTX for just $25 million. The lender as recently as early June was set to close a funding round valuing it at $1 billion, which itself was a massive decline from its $3 billion valuation in March 2021.
Like other crypto lenders, BlockFi has been hit hard by the sharp downturn in the crypto market that turned into a full panic in June. Prince announced on June 13 that the firm would be trimming roughly a fifth of its workforce, equating to around 170 people. Later in June, Prince said BlockFi had secured a $250 million loan from FTX.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.