Over the past few weeks, crypto has really struggled to stay afloat. From Bitcoin crashing to different blockchains experiencing troubles and lags, such as Celsius having to freeze lending and Solend relying on what a singular whale does, it’s been rough to say the least. Last week we discussed how, through all of this, some in the crypto space have lent a helping hand. One of the best examples of this is Sam Bankman-Fried, CEO of the crypto exchange FTX. Mr. Bankman-Fried has agreed to help the crypto lending platform, BlockFi, with a new $250 million revolving credit facility. The financing from Bankman-Fried will assist BlockFi in navigating the market from a position of strength.
As of today, it looks like the deal will go through. Indeed, the term sheet for the deal is over the finish line, with an expected signing to be complete by the end of the week. FTX is expected to pay roughly $25 million, one source said, 99% below BlockFi’s last private valuation. Other’s familiar with the deal have said the price will be closer to $50 million.
What do you think about this deal and is it a good one for FTX?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.