FTX US Gains 'Option to Acquire' BlockFi for Up to $240M

The agreement reached with the FTX unit has a total value of "up to $680 million," according to BlockFi's CEO.

AccessTimeIconJul 1, 2022 at 6:16 p.m. UTC
Updated May 11, 2023 at 4:24 p.m. UTC

BlockFi and FTX US have reached a deal that will provide the embattled crypto company with a $400 million credit facility.

The deal also gives FTX US, a unit of Sam Bankman-Fried's FTX crypto exchange, the right to acquire BlockFi and will, according to BlockFi CEO Zac Prince, "protect client funds."

  • Legal Expert on Pitfalls of FTX's Bankruptcy Plan
    13:45
    Legal Expert on Pitfalls of FTX's Bankruptcy Plan
  • How the Top One-Third of FTX Creditors Are Boosting the Payouts for Everyone Else
    08:50
    How the Top One-Third of FTX Creditors Are Boosting the Payouts for Everyone Else
  • Will All FTX Creditors Get Their Funds Back in Cash? Gronk to Pay $1.9M for Crypto Investor Suit
    01:44
    Will All FTX Creditors Get Their Funds Back in Cash? Gronk to Pay $1.9M for Crypto Investor Suit
  • Generative Art Platform Art Blocks Acquires NFT Marketplace Sansa
    14:04
    Generative Art Platform Art Blocks Acquires NFT Marketplace Sansa
  • In a tweet Friday, Prince said the parties agreed to the "definitive agreement" one day prior. He said it is still subject to shareholder approval. The deal has a total value of "up to $680 million."

    BlockFi's valuation would appear to be a moving target. While earlier reports listed it at $25 million, the terms agreed to Friday give BlockFi a "variable price of up to $240 million based on performance triggers." Prince said BlockFi has not drawn from the credit facility.

    "As a matter of principle, we fundamentally believe in protecting client funds. Not only because it’s absolutely the right thing to do, but this also benefits the ongoing health and adoption of crypto financial services worldwide. Therefore, it was important to add capital to our balance sheet to bolster liquidity and protect client funds," Prince said in the tweet.

    This is a developing story and will be updated.




    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.