FTX Agrees Deal With Option to Buy BlockFi for up to $240M

Techcrunch | Lucas Matney | Jul 1, 2022

Sam Bankman-Fried’s FTX is taking advantage of rampant instability in the crypto lending market to assert itself while propping up major institutions.

The company’s U.S.-based arm has a deal in place with troubled crypto lender BlockFi that gives them the option to buy the startup, recently valued at $2 billion, for up to $240 million based on the startup’s performance. BlockFi CEO Zac Prince did not disclose what the low end of the deal could look like in a thread disclosing the term sheet on Twitter. This announcement comes after a CNBC report yesterday pegged the deal at $25 million.

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Alongside the potential for an acquisition, with the deal FTX US is giving BlockFi a $400M revolving credit facility to shore up its finances in the midst of market uncertainty.

Yesterday we signed definitive agreements, subject to shareholder approval, with FTX US for:

1. A $400M revolving credit facility which is subordinate to all client funds, and
2. An option to acquire BlockFi at a variable price of up to $240M based on performance triggers.

— Zac Prince (@CostSegZac) July 1, 2022

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