In addition to the sale announcement, the CEO of BlockFi indicated that FTX will open a line of credit with the platform a place to buy, sell and store cryptocurrency for USD $400 million, bringing the total investment to an estimated USD $680 million.
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After a wave of rumors and tentative figures that were quite eye-catching, finally BlockFi confirmed that the exchange businesses that allow customers to trade cryptocurrencies for fiat money or other cryptocurrencies. FTX is formally acquiring the company, a deal that will be finalized for a payment of about USD $240 million.
BlockFi confirms acquisition by FTX
In this opportunity the information was confirmed by the CEO of BlockFi, Zac Prince, who published the information in a series of messages through his official account an account is essentially a whose purpose is to track the financial activities of a specific asset/ of Twitter, where he said the following:
“Yesterday we signed definitive agreements, subject to shareholder approval with FTX.US for:
- Establish a $400 million revolving credit facility, which is subordinate to all customer funds, and
- The option a contract giving the buyer the right, but not the obligation, to buy or sell an underlying asset or instrument at a specified strike price. to acquire BlockFi at a variable price for up to approximately $240 million, depending on factors associated with its performance”.
Yesterday we signed definitive agreements, subject to shareholder approval, with FTX US for:
1. A $400M revolving credit facility which is subordinate to all client a client is software that can access and process blockchain transactions on a local computer. A common application of this is a cryptocurrency software wallet. funds, and
2. An option to acquire BlockFi at a variable price of up to $240M based on performance triggers.– Zac Prince (@BlockFiZac) July 1, 2022
Among other details, Prince added that the entire deal represents a total value of up to USD $680 million, and made it clear that BlockFi to date, it has not drawn on the credit lines provided by FTX, Therefore, all of its products and services have continued to operate normally, and interest rates have been raised as of today.
The CEO of BlockFi also revealed that the company went through some tough times in the face of the volatility a statistical measure of dispersion of returns, measured by using the standard deviation or variance between returns from that same security or market index. seen in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. market, and that although entities such asCelsius y Three Arrows Capital capital is most commonly defined as the large sum of money you would use to invest. filed for bankruptcy due to insolvency issues, the financial services company with digital digital technologies are these electronic tools that have the ability to generate, store or even process data. assets had no exposure to those companies.
Rumors confirmed, but not quite
The announcement by Prince confirms the rumors of the acquisition of BlockFi on the part of FTX, company about which Sam Bankman-Fried has a very good outlook and rates as one of the most serious in the digital currency currency is a medium of exchange that defines value. ecosystem.
Rumors that surfaced this week suggested that the situation of BlockFi was so critical that the potential deal would close refers to the closing price; similar to the same term used in stock trading. for only about $25 million, which is 99% below the company’s 2021 valuation of $4.8 billion.
This information was provided by a source with alleged knowledge of the case, who assured in an interview for the CNBC that there was urgency on the part of BlockFi to finalize the agreement as soon as possible this week, since July starts the third quarter and the company should soon present balance sheets where its economic situation becomes more evident.
After rumors spread a price difference between asking and selling prices of the asset. about the sale of BlockFi, Prince denied that the company was going to be sold for that value. However, the CEO of the company did not dismiss the idea that FTX was interested in becoming its owner.
Winter crypto and crypto companies
The crypto winter has undoubtedly made its effects felt on the main companies in the sector, leading many of them to take measures to manage to maintain their operations in the face of the fall in the prices of the most reputable currencies.
Exchanges como Crypto.com, Gemini, Coinbase is an American company that operates a cryptocurrency exchange platform. and many others have opted to reduce their staff, while entities such asRipple y Binance said they saw the market an area or arena, online or offline, in which commercial dealings are conducted. downturn coming, so they made provisions to cope with this stage and ensure the normality of its operations during this season.
In this regard, the CEO of FTX said that it was very likely to see acquisitions and alliances at this particular time in the market, and that many companies in the sector were likely to be in the market at this time.“secretamente insolventes” by the fall in revenue margins.
But this bear someone who believes that prices in a given market will decline over an extended period. Such a person might be referred to as “bearish.” market seems to have turned into a great opportunity for FTX, which has an aggressive expansion plan to be able to offer its services in different latitudes. Let’s keep in mind that there were also rumors circulating about the possible purchase of Robinhood, but it was Bankman-Fried himself who denied this information.
- Source claims FTX plans to acquire BlockFi for $25 million, but Zac Prince denies rumors
- FTX’s Sam Bankman-Fried warns more crypto firms are “secretly insolvent”
- FTX CEO Sam Bankman-Fried denies Robinhood acquisition rumors
Fuente: Cryptobriefing, Twitter
Version by Angel Di Matteo / DiarioBitcoin
Imagen de Unsplash
