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FTX Might Buy BlockFi For A $15M Peanut

Crypto exchange FTX is poised to hit its best buy deal this year when it finalizes terms to acquire BlockFi, a prominent crypto lending services platform following the 2021 bull run.
A new report shows that the base price of FTX. US’s buyout deal with BlockFi is set at $15 million, with the price tag increasing in line with “performance.”

According to people familiar with the situation, FTX USA could be approved to buy BlockFi for a minimum of $15 million.

This figure is lower than the $25 million announced in a report published by CNBC months ago, prompting BlockFi CEO Zac Prince to tweet, “I can 100 percent confirm we weren’t sold for $25 million.”

FTX Kit to Play with BlockFi Purchase

The sale price is a far cry from the $3 billion BlockFi raised in the company’s March investment round, where it provided $350 million.

The initial acquisition deal was made public on July 1, with Prince admitting that the $240 million deal is tied to “performance triggers” and that “crypto market volatility, including market developments associated with Celsius and 3AC, has had a detrimental effect on BlockFi.”

FTX US will receive $25 million if BlockFi gets key regulatory clearance from the U.S. Securities and Exchange Commission by December 31 for BlockFi Yield, a product that will increase interest by lending depositors cryptocurrency at a higher interest rate, sources said. He added that he would pay more ratio.

Sam Bankman-Fried: The 79th Richest Person in the World

Also, if BlockFi’s client assets reach a minimum of $10 billion by October 2023, FTX US will pay another $100 million. FTX US has reportedly agreed to pay an amount equal to one-quarter of BlockFi’s annual operating income, up to a maximum of $100 million.

Sam Bankman-Fried, founder and CEO of FTX, is estimated to be worth close to $20 billion by Forbes, placing him at number 79 on the list of the World’s richest people.

On June 27, FTX made a $250 loan to BlockFi, which has been severely affected by the ongoing bitcoin market crisis. BlockFi has since reduced its headcount by roughly 20% and has joined numerous other bitcoin companies to reduce employment.

Last year, BlockFi was estimated to be worth around $4.8 billion after a round of investment. Currently, the company is being acquired at a massive $15 million discount compared to its previous price.