FTX US Reaches Deal to Buy Troubled Crypto Lender BlockFi

FTX US, the US division of the crypto exchange led by billionaire Sam Bankman-Fried, signed an agreement with BlockFi that includes an option to purchase the crypto lender for as much as $240 million, BlockFi Chief Executive Zac Prince said on Friday. The deal price, however, is based on certain performance targets. The agreement also involves a $400 million revolving line of credit, for a total price of $680 million. 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 funds, and2. An option to acquire BlockFi at a variable price of up to $240M based on performance triggers. — Zac Prince (@BlockFiZac) July 1, 2022 The BlockFi CEO also stated that the company looked into several different options for adding capital to its balance sheet and salvaging its operations. However, Prince says discussions with FTX US were the most productive, and the two firms moved forward with negotiations. “Ultimately, we found a great partner in FTX US, who shares our commitment to clients. This represents the best path forward for all BlockFi stakeholders and the crypto ecosystem as a whole,” the CEO wrote in his tweet. BlockFi’s Loss Minor to Other Lenders BlockFi said it has suffered $80 million in losses “which is a small fraction of losses publicly reported by other lenders.” Its losses with the hedge fund will be part of Three Arro...