The Bahamas-based digital asset exchange FTX is reportedly interested in acquiring a stake in crypto lender BlockFi.
The Wall Street Journal reports discussions between the firms are ongoing and that no equity agreement has been reached yet, according to anonymous sources.
Earlier this week, FTX agreed to provide BlockFi with a $250 million line of credit.
Zac Prince, BlockFi’s chief executive, said the money is “intended to be contractually subordinated to all client balances across all account types (BlockFi interest account, BlockFi personal yield and loan collateral) and will be used as needed.”
According to Prince, access to additional capital bolster’s the firm’s balance sheet as well as the platform’s strength.
“This agreement also unlocks future collaboration and innovation between BlockFi & FTX as we work to accelerate prosperity worldwide through crypto financial services. This is a significant step forward in our commitment to the strength and accessibility of crypto markets.”
FTX CEO Sam Bankman-Fried said the injection was designed to enable BlockFi to “navigate the market from a position of strength.”
“BlockFi has careful risk management and great leadership. So they successfully removed at-risk counterparties preemptively. BlockFi customer assets are appropriately managed, with no debt/risk from 3AC, Celsius, etc…
And, going forward, we’re excited to partner with BlockFi to offer industry leading products. We take our duty seriously to protect the digital asset ecosystem and its customers.”
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Source: https://dailyhodl.com/2022/06/25/crypto-exchange-ftx-interested-in-acquiring-a-stake-in-blockfi-report/