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Crypto Exchange FTX In Discussion To Buy Stake In BlockFi: Report



Crypto exchange FTX in discussion to acquire stake in BlockFi: Report

The Wall Street Journal, citing people familiar with the matter, reported that cryptocurrency exchange FTX is in talks to acquire a stake in crypto lender BlockFi.

The companies announced earlier on Tuesday that BlockFi had signed a term sheet with FTX for a $250 million revolving credit facility that would give BlockFi significant access to capital amid a slump in the digital currency market.

According to the Wall Street Journal, no equity settlement has yet been reached, and discussions are ongoing.

In a statement, a BlockFi spokesperson said that the company “does not comment on market rumours.”

A BlockFi spokesperson said, “We are still negotiating the terms of the deal and cannot share further details at this time. We look forward to sharing more on the terms of the deal with the public at a later date.” “

A spokesperson for FTX declined to comment.

Last week, BlockFi said it was slashing about 20% of its workforce, in addition to implementing other cost-cutting measures such as reducing marketing expenses and executive compensation.

Aggressive rate hikes by the US Federal Reserve and bearish fears have created volatility in equities and fueled a selloff in cryptocurrencies.

Last weekend, Bitcoin, the world’s largest cryptocurrency, fell below the key $20,000 level for the first time since December 2020.

(Except for the title, this story has not been edited by NDTV staff and is published from a syndicated feed.)