FTX Is Close But No Cigar To A Major Deal With BlockFi

According to CNBC, FTX is on the verge of acquiring BlockFi for $25 million in a deal that is "expected to be signed by the end of the week." According to one source, the final price could change by Friday.

​BlockFi CEO Zac Prince spoke out shortly after a report claimed that crypto billionaire Sam Bankman-FTX Fried's was on the verge of purchasing the struggling crypto currency firm at a steep discount. ​

“ BlockFi’s team has always demonstrated a strong bias towards prudent risk management and swift action.

​Protecting customer assets is their top priority which allows them to operate from a position of strength. FTX is excited to partner with BlockFi, a leader in the digital asset ecosystem, to offer first-class products to customers,”

The rumored $25 million represents a 95% discount to BlockFi's most recent private valuation of $4.8 billion. BlockFi, which just last week agreed to a $250 million emergency line of credit with FTX. BlockFi representatives declined to comment further on a possible sale.

That price tag would be significantly lower than BlockFi's $3 billion valuation in March 2021. It attempted to raise capital in early June at a lower valuation of about $1 billion.

​BlockFi is among those impacted by the industry's liquidity crisis and Three Arrows Capital's problems. It had admitted that it had liquidated a large client who had failed to meet its obligations under an overcollateralized margin loan, but had not named the client.