Bulletins

BlockFi agrees to sell itself to FTX

The crypto lender has secured a $400 million credit facility from FTX. The sale could net it $240 million.

The BlockFi website on a laptop computer.

BlockFi CEO Zac Prince said the company was affected by crypto volatility and other companies' decisions to stop customer withdrawals.

Photo: Gabby Jones/Bloomberg via Getty Images

BlockFi CEO Zac Prince said his company has signed a deal giving FTX the option to buy the crypto lender for up to $240 million as part of a credit financing agreement.


BlockFi has secured a $400 million credit facility from FTX, which would also have the option to acquire the company “at a variable price of up to $240M based on performance triggers,” Prince said in a tweet on Friday.

Prince made the announcement a day after denying “market rumors” that FTX would buy the company for $25 million. The deal for a company once valued by its investors at around $5 billion is one more sign of the deepening slump in the crypto market. Cryptocurrencies have shed roughly $2 trillion in the last seven months, and the companies trading and lending against them have seen their value fall as well. BlockFi announced recently that it was slashing 20% of its workforce.

Interlocking financial relationships between crypto companies have contributed to some companies' woes, either directly or indirectly.

“Crypto market volatility, particularly market events related to Celsius and 3AC, had a negative impact on BlockFi,” Prince said.

He said that the news two weeks ago that Celsius was stopping withdrawals, swaps and transfers “started an uptick in client withdrawals from BlockFi’s platform despite us having no exposure to them.”

In its quest for a solution, Prince said BlockFi was “presented with various unattractive options where client funds would take a haircut or be behind a lender in the capital stack,” which he said were “completely unacceptable.”

The FTX deal was “the best path forward for all,” Prince said.

FTX CEO Sam Bankman-Fried didn't comment directly on the deal, but he retweeted a Twitter user who said, "Tinder, but it’s FTX swiping left or right on distressed assets."

Latest Bulletins

Block reported second-quarter earnings that just topped analysts’ estimates, but shares fell as investors digested the effect of the macroeconomic environment on the company’s core payments businesses. Bitcoin volume also dragged on total revenue.

Keep Reading Show less

Meta announced Thursday it had banned Cyber Front Z, a pro-Russia troll group that purported to mobilize harassment by supporters of Vladimir Putin's war in Ukraine through a public Telegram channel.

Keep Reading Show less

Coinbase said Thursday that it has partnered with BlackRock to give the world’s biggest asset manager’s clients access to bitcoin and other cryptocurrencies.

Keep Reading Show less

Workers at Blizzard Albany, a subsidiary of game publisher Activision Blizzard formerly known as the studio Vicarious Visions that works on the popular Diablo franchise, said on Wednesday that studio management plans to fight their decision to unionize with the Communications Workers of America.

Keep Reading Show less

Binance co-founder Yi He will take over Binance Labs, the crypto powerhouse’s multibillion-dollar venture capital arm, the company said Wednesday.

Keep Reading Show less

While the $280 billion Chips Act is largely focused on bolstering the U.S. semiconductor industry, it could also be a game changer for carbon dioxide removal. Buried within the sprawling bill is an authorization for research into the technology that, while not proven at scale, could nevertheless play an important role in addressing climate change.

Keep Reading Show less

A new Senate bill would give the Commodity Futures Trading Commission authority over the markets for bitcoin and ether, the two largest cryptocurrencies.

Keep Reading Show less

Robinhood said Tuesday that it was cutting more jobs as CEO Vlad Tenev acknowledged that the company got 2022 market trends wrong.

Keep Reading Show less

PayPal reported second-quarter earnings that beat analyst estimates, adding hopes for investors that the payments giant was seeing a bounce-back from its previous quarter, when economic jitters wiped out the company's pandemic gains.

Keep Reading Show less

Hackers stole nearly $200 million in cryptocurrency after the Nomad crypto bridge protocol was breached.

Keep Reading Show less

Robinhood has been fined $30 million by New York's top financial regulators over alleged shortcomings in the company's anti-money laundering and cybersecurity practices.

Keep Reading Show less

Real estate iBuyer Opendoor has settled charges with the FTC, agreeing to pay $62 million and cease practices the FTC called "deceptive."

Keep Reading Show less

Big Tech is trying to save college affirmative action. A slew of tech companies, including Meta, Google and Apple, filed a brief with the U.S. Supreme Court on Monday signaling support for affirmative action programs at Harvard.

Keep Reading Show less

The Nuclear Regulatory Commission is about to do something it hasn’t done in years: certify the design for a brand new reactor.

Keep Reading Show less

The SEC has filed charges against 11 people involved in an international "crypto pyramid and Ponzi scheme" that raised more than $300 million from millions of investors.

Keep Reading Show less

A bet on banking doesn't seem to have saved troubled fintech LendUp. Parent company LendUp Global has reportedly begun liquidating assets, including its neobank subsdiary, through an assignment for the benefit of creditors, a quieter alternative to a public bankruptcy.

Keep Reading Show less

After admonishing crypto lender Voyager Digital for "false and misleading" statements on the subject, the FDIC said banks must ensure that crypto firms they partner with are clear about whether customer deposits are insured.

Keep Reading Show less

The ad market is starting to get very rocky: Roku warned investors about a “significant slowdown in TV advertising spend” as it reported its second-quarter earnings Thursday.

Keep Reading Show less

Intel issued a grim quarterly report card Thursday, telling investors that the company’s ever-important data center and AI business revenue declined 16% to $4.6 billion.

Keep Reading Show less

What a difference two weeks and a name change makes: Sen. Joe Manchin left the Build Back Better Act for dead (twice). But late Wednesday, the West Virginia senator and Sen. Majority Leader Chuck Schumer said they reached an agreement to spend $369 billion to turn the climate tide. It's nowhere near enough funding to save the planet, but it will help get clean energy tech deployed more rapidly and inch the U.S. closer to meeting President Joe Biden's climate goals.

Keep Reading Show less

Sens. Dick Durbin and Roger Marshall will propose a bill as early as this week targeting credit card fees, the Wall Street Journal reports. The proposed legislation would be similar to the 2011 Durbin amendment, which capped fees debit card processing companies could charge.

Keep Reading Show less

TikTok announced on Wednesday that it’s working on new transparency tools for researchers. By the end of the year, TikTok says “selected researchers” will have access to APIs that allow them to conduct tests and study trends using anonymized data sets. Though the move will help address mounting concerns in the U.S. over TikTok’s data security, it likely comes in response to the EU's forthcoming Digital Services Act, which contains mandates for research access.

Keep Reading Show less

The Federal Trade Commission has filed a lawsuit against Meta and Within, the startup behind the VR fitness app Supernatural. The agency is asking a federal court for a preliminary injunction to stop the two companies from proceeding with an acquisition, alleging the deal would limit competition.

Keep Reading Show less

The U.S. Senate voted 64-33 Wednesday to approve a $280 billion piece of legislation that will dole out a batch of chip manufacturing subsidies and research funding that’s designed to return chip production to the U.S. in some meaningful fashion.

Keep Reading Show less

Google is buying the Thompson Center, a famed building housing government offices in downtown Chicago, for $105 million. The building will be renovated and redeveloped into a headquarters for Google's employees.

Keep Reading Show less
Bulletins