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FTX signs deal with option to buy BlockFi for up to $240M

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Sam Bankman-Fried’s FTX crypto change has signed a take care of an choice to purchase embattled crypto lender BlockFi for as much as $240 million, BlockFi Chief Government Zac Prince mentioned on Friday.

FTX has additionally agreed to offer BlockFi with a $400 million revolving credit score facility, Prince mentioned in a tweet. He added that BlockFi has confronted a leap in withdrawals after information of crypto lending platform Celsius Network’s freeze.

Fears of a attainable US recession as a result of aggressive rate hikes from the Federal Reserve have roiled dangerous property this yr, together with cryptocurrencies. That has sparked a meltdown in what was simply final yr a booming industry

Final month, BlockFi minimize 20% of its headcount and carried out a number of cost-cutting measures equivalent to lowering advertising spending and govt compensation.

Firms use revolving credit score services as backstop financing to fight hostile impacts on different sources of revenue. For essentially the most half, these services stay undrawn.

Zac Prince
Zac Prince’s BlockFi has confronted a leap in withdrawals after information of crypto lending platform Celsius Community’s freeze.
CNBC