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BlockFi Reaches Deal With FTX US

BlockFi Reaches Deal With FTX US

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CoinDesk Staff

BlockFi and FTX US have reached a deal that will grant the embattled crypto a $400 million credit facility, give FTX US the right to acquire BlockFi, and, according to CEO Zac Prince, "protect client funds."

In a tweet Friday, Prince said the parties agreed to the "definitive agreement" one day prior. He said it is still subject to shareholder approval. The deal is a total value of "up to $680 million."

(Long thread!)
Excited to share an update on our previously announced term sheet with @FTX_US - and how we've broadened the scope of the initial deal for the benefit of all key @BlockFi stakeholders.
— Zac Prince (@BlockFiZac) July 1, 2022

BlockFi's valuation would appear to be a moving target. While earlier reports listed it at $25 million, the terms agreed to Friday give BlockFi a "variable price of up to $240 million based on performance triggers." Prince said BlockFi has not drawn from the credit facility.

"As a matter of principle, we fundamentally believe in protecting client funds. Not only because it’s absolutely the right thing to do, but this also benefits the ongoing health and adoption of crypto financial services worldwide. Therefore, it was important to add capital to our balance sheet to bolster liquidity and protect client funds," Prince said in the tweet.

This is a developing story and will be updated.

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