{"id":1534565,"date":"2022-07-01T09:35:38","date_gmt":"2022-07-01T13:35:38","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1534565"},"modified":"2022-07-01T09:49:37","modified_gmt":"2022-07-01T13:49:37","slug":"crypto-exchange-blockfi-to-sell-for-25-million-in-fire-sale-down-99-from-last-valuation","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/crypto-exchange-blockfi-to-sell-for-25-million-in-fire-sale-down-99-from-last-valuation\/","title":{"rendered":"Crypto Exchange BlockFi to Sell for $25 Million in Fire Sale &#8211; Down 99% From Last Valuation"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">34<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fcrypto-exchange-blockfi-to-sell-for-25-million-in-fire-sale-down-99-from-last-valuation%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1534565&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<header id=\"SpecialReportArticle-PageHeaderWithTuneInText-2\" class=\"PageHeaderWithTuneInText-container PageHeaderWithTuneInText-isSpecialReport\" data-test=\"pageHeaderWithTuneInText-0\" data-analytics=\"SpecialReportArticle-pageHeaderWithTuneInText-2-0\">\n<div class=\"PageHeaderWithTuneInText-main\">\n<p><a href=\"https:\/\/www.cnbc.com\/cryptoworld\/\"><img decoding=\"async\" class=\"PageHeaderWithTuneInText-logoImg HeaderImage-regularImage\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/107010381-1644353263955-CRYPTO_WORLD_LANDER_GREY_TO_BLUE.png?v=1644353275&amp;h=80\" alt=\"Crypto World\" \/><\/a><\/p>\n<\/div>\n<div class=\"PageHeaderWithTuneInText-divider\">\n<div class=\"PageHeaderWithTuneInText-tuneInText\">Watch Daily: Monday &#8211; Friday, 3 PM ET<\/div>\n<\/div>\n<\/header>\n<\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div id=\"SpecialReportArticle-KeyPoints-5\" class=\"RenderKeyPoints-keyPoints\" data-test=\"keyPoints-1\" data-analytics=\"SpecialReportArticle-keyPoints-5-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>Crypto exchange FTX is close to finalizing a term sheet to buy BlockFi and a deal is expected to be signed by the end of this week, three sources familiar with the situation told CNBC.<\/li>\n<li>It comes after FTX provided a $250 million emergency line of credit to BlockFi.<\/li>\n<li>The price tag is well below BlockFi&#8217;s last valuation, leaving equity investors in BlockFi \u201cwiped out\u201d and writing off the value of their losses.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div id=\"SpecialReportArticle-ArticleBody-6\" class=\"ArticleBody-articleBody\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"SpecialReportArticle-articleBody-6-2\">\n<div class=\"group\">\n<p>FTX is swooping in to buy crypto lender BlockFi for pennies on the dollar, sources told CNBC.<\/p>\n<p>The term sheet is almost over the finish line and expected to be signed by the end of the week, according to three sources, who asked not to be named because the deal discussions were confidential. FTX is expected to pay roughly $25 million, one source said, 99% below BlockFi&#8217;s last private valuation. Another person with direct knowledge of the deal pegged the price closer to $50 million. Jersey City, New Jersey-based BlockFi was last valued at $4.8 billion, according to PitchBook.<\/p>\n<p>The price tag could shift between now and Friday, the source said. An acquisition could also take multiple months to close. The person added that the deal could end up being options to acquire BlockFi at a later date, pending regulatory approval.<\/p>\n<p>Friday also marks the end of the quarter, which one source said was a catalyst for getting a deal signed. The Wall Street Journal first reported that FTX was <a href=\"https:\/\/www.wsj.com\/articles\/crypto-exchange-ftx-in-talks-to-acquire-stake-in-blockfi-11656083179\" target=\"_blank\" rel=\"noopener\">seeking<\/a> an equity stake in the company, while The <a href=\"https:\/\/www.theblock.co\/post\/154929\/ftx-blockfi-deal-sources\" target=\"_blank\" rel=\"noopener\">Block<\/a> reported this week that an outright deal was in the works.<\/p>\n<p>An FTX spokesperson said the company &#8220;would not be commenting on the matter.&#8221; A BlockFi spokesperson said the company &#8220;does not comment on market rumors.&#8221; BlockFi CEO Zac Prince pushed back on the $25 million figure in a tweet calling the figure &#8220;market rumors.&#8221;<\/p>\n<p>The fire sale comes a week after FTX provided a $250 million emergency line of credit to BlockFi. FTX CEO Sam Bankman-Fried said at the time that the financing would help BlockFi &#8220;navigate the market from a position of strength.&#8221;<\/p>\n<p>It&#8217;s the latest fallout for crypto lending companies amid plunging crypto asset prices. Funds have struggled with liquidity issues as counterparties fail to meet margin calls. Celsius and CoinFlex paused customer withdrawals citing &#8220;extreme market conditions.&#8221; Major cryptocurrency hedge fund Three Arrows Capital has fallen into liquidation, CNBC <a href=\"https:\/\/www.cnbc.com\/2022\/06\/27\/three-arrows-capital-crypto-hedge-fund-defaults-on-voyager-loan.html\">reported<\/a> earlier, marking one of the biggest casualties of crypto&#8217;s bear market.<\/p>\n<p>Another source said equity investors in BlockFi are &#8220;wiped out&#8221; and are now writing off the value of their losses.\u00a0The person said multiple offers were being considered, since there was no &#8220;shop clause&#8221; in the term sheet.<\/p>\n<p>&#8220;There was more than one deal on the table,&#8221; a source told CNBC.<\/p>\n<p>Billionaire Bankman-Fried has been seen as a lender of last resort in the space. In addition to BlockFi, Bankman-Fried&#8217;s company Alameda Research <a href=\"https:\/\/www.cnbc.com\/2022\/06\/22\/sam-bankman-fried-rescues-crypto-lenders-blockfi-voyager.html\">provided<\/a> a $500 million loan to Voyager.<\/p>\n<p><em>Subscribe<\/em> <a href=\"https:\/\/www.cnbc.com\/application\/pro\/\"><em>to CNBC PRO<\/em><\/a> <em>for exclusive insights and analysis, and live business day programming from around the world.<\/em><\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Watch Daily: Monday &#8211; Friday, 3 PM ET      Crypto exchange FTX is close to finalizing<\/p>\n","protected":false},"author":1,"featured_media":1515298,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1534565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1534565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1534565"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1534565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1515298"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1534565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1534565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1534565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}