FTX US Inks Deal with BlockFi and May Buy the Platform
The US division of crypto derivatives exchange FTX will issue a $400 million revolving loan to BlockFi and will receive an option to buy out the landing platform for $240 million, BlockFi CEO Zac Prince has said.
He has said that taking into account additional factors, the deal implies a total valuation of BlockFi up to $680 million.
We should remember that the agreement still must be approved by shareholders.
Prince has said that fear and uncertainty in the cryptocurrency market led to the deal with FTX US due to falling prices, problems with the crypto lending service Celsius and the default of hedge fund Three Arrows Capital (3AC).
The BlockFi CEO has said the platform lost about $80 million despite a quick liquidation and hedging response. Prince has promised to cover losses without impacting client funds.
