FTX US made a Blockfi deal with the possibility of buying a platform

The American Bitcoin-Exchange FTX unit will issue a renewable BlockFi loan of $ 400 million and will receive an option to redeem the landing platform for $ 240 million. About this was told by CEO BLOCKFI Zach Prince.

According to him У Росії зупиняється , taking into account additional factors, the transaction involves a overall Blockfi assessment to $ 680 million. The agreement awaits the approval by shareholders.

Prince clarified that the deal with FTX USA led to fear and uncertainty in the cryptocurrency market due to the fall of quotations, the problems of the Cryptoncredification Service of the Celsius and the Defolt of the Hedge Fund Three Arrows Capital (3ac).

The head of Blockfi said that the losses of the platform amounted to about $ 80 million, despite the quick reaction to eliminate positions and hedge. Prince promised to cover losses without influencing customer funds.

In the Same Week, 3ac News Spread Further Fear in the Market. While we were one of the first to fully accelerate our overcollateralized loan to 3AC, as well as liquidate and hedge all collateral, we did experience ~$80M in losses, which is a fraction of losses reported by others.

– ZAC Prince (@blockfizac) July 1, 2022

Prince claims that the transaction will not affect Blockfi products and customers. In the future, it expects to improve services through cooperation with FTX US.

“All our products and services, including the input and withdrawal of funds, a trading platform, a credit card and global institutional services, continue to work as usual, with additional financial support,” said CEO Blockfi.

The FTX US Platform and Products Are Highly Complementary to Blockfi and We Anticipate Enhancements to OURVIGHIGH INCROUGH Increased Collaboration. Expect More Exciting News to Come on this Soon.

– ZAC Prince (@blockfizac) July 1, 2022

On June 21, Blockfi agreed with the FTX on a renewable credit line for $ 250 million.

June 24 WSJ wrote about the plans of the exchange to purchase a share in the platform. According to CNBC, it was about $ 25 million.

In March 2021, the Blockfi estimate reached $ 3 billion. In June 2022, according to The Block, investors reduced the platform rating from $ 5 billion to $ 1 billion.

According to the media, the desire to enter the capital of Blockfi also expressed Morgan Creek Digital and the Ledn cryptolending platform.

Recall that in May the head of FTX Sam Bankman-Frida promised to spend “billions” on the purchase of shares in other companies.

In June, he spoke about the efforts taken by Alameda Research to mitigate the negative phenomena in the cryptocurrency market.

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