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.

AccessTimeIconJul 1, 2022 at 12:00 p.m. UTC
Updated May 11, 2023 at 4:24 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

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.

  • What Challenges Do Appchains Solve?
    00:59
    What Challenges Do Appchains Solve?
  • Appchain Protocol Tanssi Raises $6M
    18:57
    Appchain Protocol Tanssi Raises $6M
  • Breaking Down Internet Computer's 40% Rally
    00:59
    Breaking Down Internet Computer's 40% Rally
  • HSBC Brings Tokenized Gold to Hong Kong; Munchables Exploited for $62M
    02:14
    HSBC Brings Tokenized Gold to Hong Kong; Munchables Exploited for $62M
  • "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.

    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.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


    Learn more about Consensus 2024, 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.