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FTX to Boost Liquidity with $1 Billion Anthropic Share Sale

FTX is set to add over $1 billion to its liquidity through the sale of its Anthropic shares, following court approval. This strategic move aims to ensure ample funds for creditor repayment amidst ongoing legal and financial restructuring.

FTX, the cryptocurrency exchange that declared bankruptcy, has received court approval to enhance its financial reserves by over $1 billion through the sale of its shares in the AI firm, Anthropic. This move comes as part of FTX's broader strategy to amass funds sufficient to settle its creditors.

Court Greenlights Sale Amid Controversy

The decision, handed down by Judge John Dorsey of the Delaware Bankruptcy Court on February 22, allows FTX to proceed with the divestiture of its stake in Anthropic. This development follows negotiations with customers who initially contested the sale, arguing that the shares were acquired with improperly used customer funds—a point highlighted during FTX co-founder Sam Bankman-Fried's criminal proceedings.

Despite these objections, an agreement was reached that permits the sale, with the condition that claimants may later seek a share of the proceeds, specifically aimed at compensating FTX users.

A Strategic Divestiture

FTX's legal representation, Andrew Dietderich of Sullivan & Cromwell, indicated the exchange's intent to liquidate its assets comprehensively, channeling the proceeds into its cash reserves. The sale of the nearly 8% stake in Anthropic is a significant part of this liquidation effort, expected to substantially bolster FTX's ability to reimburse its creditors. With $6.4 billion already in the bank, the addition from the Anthropic share sale promises to more than cover the claims of verified creditors.

Initially, FTX had invested approximately $530 million in Anthropic in April 2022. Despite a dilution of its stake from over 13.5% due to subsequent funding rounds for Anthropic, the valuation of FTX's share has surged, especially after Anthropic's valuation reached $15 billion in its latest funding round.

Repayment Plans and Future Prospects

Dietderich revealed that FTX is optimistic about fully settling its debts to creditors, negating the need to revive the exchange. However, the repayment plan hinges on cryptocurrency values at the time of FTX's bankruptcy filing over 15 months ago, a period when Bitcoin's value was significantly lower than its current rate.

Amid these developments, Sam Bankman-Fried faces sentencing on March 28, after being convicted of misappropriating over $8 billion in customer funds. Despite his impending sentence, Bankman-Fried has vowed to contest the verdict.