cryptocurrency
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FTX is reportedly close to buying BlockFi for $25 million

BlockFi's CEO has dismissed the talk as "market rumors."

Close-up photograph of FTX CEO Sam Bankman-Fried

FTX is reportedly in talks to buy BlockFi for $25 million.

Photo: Stefani Reynolds/Bloomberg via Getty Images

FTX is reportedly close to gobbling up BlockFi for about $25 million, though BlockFi's CEO has dismissed the talk as "market rumors."

The crypto exchange is in talks to acquire crypto lender BlockFi, which has been reeling from the market downturn, according to a CNBC report published on Thursday citing unnamed sources. The Block also reported that FTX and BlockFi were close to a deal, with FTX having previously obtained an option to buy a 50% stake in the company in exchange for extending it a $250 million line of credit. FTX would pay $25 million for the remaining shares.

The deal could take a few months to close, and the final price could change, CNBC said. But BlockFi CEO Zac Prince denied the "market rumors," saying in a tweet, "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."

BlockFi was last valued at roughly $4.8 billion with $1.2 billion in funding from investors that include Bain Capital, Coinbase Ventures and Tiger Global, according to data from PitchBook. A deal on the terms described in the reports would all but wipe out BlockFi's shareholders.

BlockFi recently announced that it was slashing 20% of its workforce. Prince said in a tweet that the company had been “impacted by the dramatic shift in macroeconomic conditions.”

The crypto lender has also faced regulatory headwinds. BlockFi settled with the SEC in February over its lending products, paying a $100 million fine and agreeing to seek a registration for a new BlockFi Yield product as a security. It stopped accepting customers for its BlockFi Interest Account in the U.S. as part of the settlement.

This story has been updated with BlockFi CEO Zac Prince's statement.

 Benjamin Pimentel

Benjamin Pimentel ( @benpimentel) covers crypto and fintech from San Francisco. He has reported on many of the biggest tech stories over the past 20 years for the San Francisco Chronicle, Dow Jones MarketWatch and Business Insider, from the dot-com crash, the rise of cloud computing, social networking and AI to the impact of the Great Recession and the COVID crisis on Silicon Valley and beyond. He can be reached at bpimentel@protocol.com or via Google Voice at (925) 307-9342.

cryptocurrency blockfi ftx m&a crypto crash
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