BlockFi reportedly in talks with FTX for stake

According to people familiar with the matter, the Wall Street Journal reported that FTX is in talks to acquire a stake in BlockFi.

The companies had previously announced on Tuesday that BlockFi had signed a term sheet with FTX for a $250 million revolving credit facility, which will give BlockFi access to capital amid a rout in the digital currency market.

There isn't yet a consensus on an equity agreement, and discussions are ongoing, according to the Wall Street Journal.

A BlockFi spokeswoman said the company does not comment on market rumors. We are not sharing more information at this time because we are still negotiating the terms of the deal. The BlockFi spokesperson said that they anticipate sharing more information on the terms of the deal with the public at a later date.

In addition to reducing marketing spending and executive compensation, BlockFi said it was reducing its headcount by 20% last week.

Aggressive rate hikes by the US Federal Reserve and recession fears have resulted in a turmoil in equities and caused a sell-off in cryptocurrencies.

The world's biggest criptome,Bitcoin, dropped below the $20,000 level for the first time since December 2020.