FTX in talks to acquire stake in BlockFi, reports say

The cryptocurrency exchange FTX is in talks to acquire a stake in the lending platform BlockFi. The Wall Street Journal reports this.

According to the report, the parties have not yet reached final agreements.

On June 21, BlockFi signed a letter of intent with FTX regarding a $250 million revolving credit line. An analyst using the handle FatMan described the arrangements as “a deal with the devil”.

A BlockFi spokesperson told CoinDesk that the company ‘does not comment on rumors’.

“We are still discussing the terms of the deal and cannot share additional information at this time. We expect that details of the deal terms will be announced later,” he said.

In June, media reports said that BlockFi was preparing to close a new funding round at a valuation of $1 billion instead of the previously planned $5 billion. After that, the company announced the layoff of a fifth of its staff.

According to media reports, amid recent market turbulence, the crypto-lending platform ликвидировала at least part of the positions of hedge fund Three Arrows Capital.

In the wake of adverse events in the industry, FTX chief Sam Bankman-Fried said he was taking steps to mitigate negative developments in the market due to problems at Celsius and Three Arrows Capital.

On June 18, the cryptocurrency broker Voyager Digital said that Alameda Research provided it with a loan of 200 million USDC and a revolving credit line of 15,000 BTC (about $300 million).

Back in May, пообещал потратить «миллиарды» on buying stakes in other companies.

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