Sam Bankman-Fried’s FTX plans to complete the BlockFi acquisition deal for $ 25 million this week. The news comes from CNBC and that information comes from anonymous sources. According to CNBC, the contract termsheet is almost over and the contract could be completed this week.
Sources were willing to reveal themselves, as the transaction is currently confidential. The deal is reportedly expected to take place at $ 25 million. The transaction price is 99% lower than the previous valuation. BlockFi had a previous valuation of $ 4.8 billion. Contracts have literally gone from billions to millions. According to one source, such acquisitions can take months to complete and prices can change from now to Friday.
Rumors of FTX acquisition came out
Rumors that FTX will sign a deal with BlockFi have been published by The Block. The Wall Street Journal also initially reported on the exchange’s plans to acquire shares in BlockFi. FTX and BlockFi spokespersons did not actively speak out on this issue.
BlockFi announced on June 13 plans to reduce staff by 20% due to difficult market conditions. The team said changes in economic conditions had a negative impact on them, which prompted them to make decisions. The company also said that market conditions have deteriorated since the first quarter of 2022, resulting in a significant decline in the equity and cryptocurrency markets.
The deal news came after FTX provided BlockFi with $ 250 million in revolving credits to help the company overcome the storm and provide stability.
The bear market has proven to be very difficult as crypto companies struggle to catch up. Due to the plunge in crypto prices and the subsequent liquidity issues, some companies have been unable to respond to margin calls. FTX CEO seems to be reaching out to various companies in the midst of market turmoil.