Tech

FTX signs deal with option to buy BlockFi for up to $240M

Sam Bankman-Fried’s FTX crypto change has signed a cope with an possibility to purchase embattled crypto lender BlockFi for as much as $240 million, BlockFi Chief Govt Zac Prince mentioned on Friday.

FTX has additionally agreed to supply BlockFi with a $400 million revolving credit score facility, Prince mentioned in a tweet. He added that BlockFi has confronted a leap in withdrawals after information of crypto lending platform Celsius Community’s freeze.

Fears of a doable US recession on account of aggressive charge hikes from the Federal Reserve have roiled dangerous belongings this 12 months, together with cryptocurrencies. That has sparked a meltdown in what was simply final 12 months a booming trade. 

Final month, BlockFi lower 20% of its headcount and applied a number of cost-cutting measures similar to decreasing advertising and marketing spending and govt compensation.

Corporations use revolving credit score services as backstop financing to fight adversarial impacts on different sources of revenue. For essentially the most half, these services stay undrawn.

Zac Prince’s BlockFi has confronted a leap in withdrawals after information of crypto lending platform Celsius Community’s freeze.
CNBC

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