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BlockFi CEO Denies $25M Sale Price as FTX Deal Approaches for Crypto Lender

BlockFi’s chief denied a report Thursday that FTX was close to buying its cryptocurrency lender for just $25 million amid “crypto winter” conditions and soaring bitcoin prices that have angered investors.

BlockFi CEO Zach Prince spoke after reports that crypto billionaire Sam Bankman-Fried’s FTX is days away from buying the struggling firm at a major discount.

The rumored $25 million is a 99% discount from BlockFi’s recent private valuation of $4.8 billion.

“There are a lot of market rumors – I can confirm 100% that we are not selling for $25M. I encourage everyone to only believe the details you hear directly from @BlockFi,” Prince said. “We will share more with you as soon as possible.”

The Post has also reached out to FTX for comment.

CNBC reports that FTX is close to buying BlockFi for $25 million in a deal “expected to be signed by the end of the week.” A source noted that the final price tag could change by Friday.

Another source told the outlet that BlockFi’s equity investors have been “wiped out” as the lender struggles to survive a downward spiral in cryptocurrency prices.

FTX
FTX recently extended a $250 million loan for BlockFi.
NurPhoto via Getty Images

Prince’s tweet did not expressly rule out a sale for BlockFi, which just last week reached an agreement with FTX on a $250 million emergency loan. BlockFi representatives declined to comment further on the potential sale.

“The BlockFi team has always demonstrated a strong bias towards prudent risk management and swift action. Protecting clients’ assets is their top priority which allows them to operate from a position of strength. FTX is excited to partner with BlockFi, a leader in the digital asset ecosystem, to offer clients first-class products,” said Bankman-Fried. $250 million in a line of credit, it said in a statement.

Block Fi
BlockFi is selling for just $25 million, according to a previous report.
dpa/image alliance via Getty I

Bitcoin’s value fell below $19,000 on Thursday as investors grappled with the possibility of a recession and reacted to fears of a liquidity crunch hitting key operators within the sector. Cryptocurrency hedge fund Three Arrows was ordered into liquidation this week after facing legal challenges from creditors over unpaid loans.

Earlier this month, BlockFi – whose backers include tech billionaire Peter Thiel – revealed it would cut staff by 20% amid what Prince described as a “dramatic change in macroeconomic conditions”.

Sam Bankman-Fried
Sam Bankman-Fried is the billionaire head of FTX.
CQ-Roll Call, Inc. via Getty Images

“We are unwavering in our commitment to ensure that Blockchain is here for the long haul,” Prince said at the time. “Our customers will not experience any material changes in the quality of service they have come to expect, their money is protected and all platforms and products will continue to operate normally.”

Days later, the Post reported that BlockFi was struggling to raise money to keep its operations afloat, even after taking a steep discount on its valuation.

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