FTX signs deal that could buy BlockFi for up to $240 million | Crypto Craft

  • FTX signs deal that could buy BlockFi for up to $240 million

    From axios.com

    Troubled crypto lender BlockFi said Friday that it agreed to an option to be acquired by FTX for up to $240 million. It also will receive a $400 million revolving credit facility from the crypto exchange operator. What to know: The acquisition figure would include performance incentives, and BlockFi didn't specify how much would be an upfront payment. CNBC yesterday reported the base price could be as low as $25 million, compared to the $2.1 billion that BlockFi has raised in venture capital funding.

Added at 1:13pm

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Goat
Jul 1, 2022 1:26pm
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If BlockFi hasn't frozen withdrawals, how do they still have customers? Wouldn't everyone have pulled out after Celcius went down? And if so, how is a shady business with no customers worth $250M?

Can somebody tell me what I'm missing here? Hasher you got any insights??
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Goat
Jul 1, 2022 1:32pm
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Hmm. Does this mean BlockFi has a $240M stash of BTC that was bought with VC money?

That would explain why the deal is "up to $240M", as it would drop if the BTC price drops.

Just a theory. I don't see a way to acutely trade this idea.
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Hasher
Jul 1, 2022 4:46pm
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Quoting Goat
If BlockFi hasn't frozen withdrawals, how do they still have customers? Wouldn't everyone have pulled out after Celcius went down? And if so, how is a shady business with no customers worth $250M? Can somebody tell me what I'm missing here? Hasher you got any insights??
They already stopped new interest bearing accounts a while ago, if you had one before before you got grandfathered in.

BlockFi was already pivoting to Credit Cards though, had that not been the case they have ended last year? Maybe a combination of that plus managing assets well enough.

Regardless I finally got around to withdrawing the other day despite gaining interest, not your keys/not your crypto and all that... risk is too high for me.
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