BlockFi CEO Zac Prince dismissed on Thursday that FTX was close to acquiring his distressed cryptocurrency lender for as little as $25 million.
Prince spoke up immediately after it was reported that crypto billionaire Sam Bankman- Fried’s FTX was on the verge of buying the faltering firm at a steep discount.
When compared to BlockFi’s most recent private valuation of $4.8 billion, the rumored $25 million represents a 99% discount.
Lots of market rumors out there – I can 100% confirm that we aren’t being sold for $25M.
I encourage everyone to trust only details that you hear directly from @BlockFi.
We will share more w you as soon as we can.
— Zac Prince (@BlockFiZac) June 30, 2022
Zac Prince dismisses FTX acquisition rumors
A report from CNBC claimed the final price could change by Friday, but the outlet said that FTX is close to acquiring BlockFi for $25 million in a deal that was “expected to be signed by the end of the week.”
Another insider revealed to the publication that BlockFi’s equity investors have been “wiped out” as the lender battles to withstand a decline in cryptocurrency prices.
The potential of a sale for BlockFi, which just last week secured an agreement with FTX on a $250 million emergency line of credit, was not explicitly denied by Prince in his tweet.
In turmoil
BlockFi, whose backers include tech billionaire Peter Thiel, announced earlier this month that it would reduce its workforce by 20% due to a “dramatic shift in macroeconomic conditions.”
“We are steadfast in our commitment to ensure BlockFi is here for the long haul,” Prince said at the time. “Our clients will not experience any material changes to the quality of service they have come to expect, their funds are safeguarded, and all platforms and products continue to operate normally.”