According to Blockfi’s co-founder Zac Prince, the company has signed definitive agreements with the crypto firm FTX and the deal is currently up to shareholder approval. The deal represents a total of $680 million, but Prince also noted that $240 million of that total could be used to acquire Blockfi at a variable price up to that amount.
This represents the full extent of the impact to Blockfi from 3AC. We have no further exposure and the limited losses we did experience will be absorbed by Blockfi with no impact to client funds.
Toward the end of Prince’s Twitter thread about the definitive agreements with FTX, the CEO said that Blockfi’s main goal has always been focused on protecting client funds. Prince further noted that it was important for Blockfi to bolster the company’s balance sheet.
What do you think about the Blockfi CEO’s Twitter thread regarding FTX giving a credit line to the company and the possibility of acquiring Blockfi for $240 million? Let us know what you think about this subject in the comments section below.