FTX closes in on a deal to buy embattled crypto lender BlockFi for $25 million in a fire sale

FTX closes in on a deal to buy embattled crypto lender BlockFi for  million in a fire sale


FTX is swooping in to buy crypto lender BlockFi for pennies on the dollar, sources told CNBC.

The term sheet is almost over the finish line and expected to be signed by the end of the week, according to one source, who asked not to be named because the deal discussions were confidential. FTX will pay roughly $25 million — 99% below BlockFi’s last private valuation. Jersey City, New Jersey-based BlockFi was last valued at $4.8 billion, according to PitchBook. 

An acquisition could take multiple months to close, and the price tag could shift between now and Friday, a source said. Friday also marks the end of the quarter, which the person said was a catalyst for getting a deal signed. The Wall Street Journal first reported that FTX was seeking an equity stake in the company, while The Block reported this week that an outright deal was in the works. 

An FTX spokesperson said the company “would not be commenting on the matter.” A BlockFi spokesperson said the company “does not comment on market rumors.”

Sam Bankman-Fried, chief executive officer of FTX Cryptocurrency Derivatives Exchange, speaks during a House Financial Services Committee hearing in Washington, D.C., U.S., on Wednesday, Dec. 8, 2021.

Stefani Reynolds | Bloomberg | Getty Images

The fire sale comes a week after FTX provided a $250 million emergency line of credit to BlockFi. FTX CEO Sam Bankman-Fried said at the time that the financing would help BlockFi “navigate the market from a position of strength.” 

It’s the latest fallout for crypto lending companies amid plunging crypto asset prices. Funds have struggled with liquidity issues as counterparties fail to meet margin calls. Celsius and CoinFlex paused customer withdrawals citing “extreme market conditions.” Major cryptocurrency hedge fund Three Arrows Capital has fallen into liquidation, CNBC reported earlier, marking one of the biggest casualties of crypto’s bear market.

Another source said equity investors in BlockFi are “wiped out” and are now writing off the value of their losses. The person said multiple offers were being considered, since there was no “shop clause” in the term sheet. 

“There was more than one deal on the table,” a source told CNBC. 

Billionaire Bankman-Fried has been seen as a lender of last resort in the space. In addition to BlockFi, Bankman-Fried’s company Alameda Research provided a $500 million loan to Voyager.

Subscribe to CNBC PRO for exclusive insights and analysis, and live business day programming from around the world.



Source

Pentagon to become largest shareholder in rare earth miner MP Materials; shares surge 50%
World

Pentagon to become largest shareholder in rare earth miner MP Materials; shares surge 50%

The Defense Department will become the largest shareholder in rare earth miner MP Materials after agreeing to buy $400 million of its preferred stock, the company said Thursday. MP Materials owns the only operational rare earth mine in the U.S. at Mountain Pass, California, about 60 miles outside Las Vegas. Proceeds from the Pentagon investment […]

Read More
The three energy topics on everyone’s lips at the OPEC seminar
World

The three energy topics on everyone’s lips at the OPEC seminar

The blue logo of the Organization of the Petroleum Exporting Countries (OPEC) is displayed on the facade of its headquarters building in Vienna, Austria, on June 9, 2025. Nurphoto | Nurphoto | Getty Images OPEC says more than 1,000 ministers, CEOs, policymakers, analysts and journalists were invited to its biennial seminar to discuss key trends […]

Read More
Mining firms power UK stocks to record high after 50% U.S. copper tariff confirmed
World

Mining firms power UK stocks to record high after 50% U.S. copper tariff confirmed

The smelting area, where the copper is smelted and then placed in molds and cooled, at the Codelco El Teniente processing facility in Machali, Chile, on Wednesday, April 2, 2025. Bloomberg | Bloomberg | Getty Images London-listed mining firms bounced on Thursday, shaking off recent losses to drive the U.K.’s FTSE 100 index to a […]

Read More