BlockFi denied claims from CNBC that FTX was in talks to buy the firm for $25 million. The CEO of BlockFi, Zac Prince, took to Twitter to dispel the rumors. The founder said in his tweet:
Prince said that his team would share more information with the public when they can. An anonymous source told CNBC about a private deal between FTX and BlockFi that was almost complete and due to be signed by the end of the week.
According to the alleged deal, BlockFi will be sold to FTX for around $25 million. This price would be a very steep discount since it is 99% lower than BlockFi's last private valuation of $4.8 billion. After the recent decline in the value of the market for cryptocurrencies, BlockFi was still valued at around one billion dollars at the beginning of June 2022.
The deal would take several months to complete and the price could change between now and Friday, with the end of Q 2 falling on Friday being the main reason for the deal being signed, according to the report by CNBC. The report did mention comments from BlockFi saying they would not speak on market rumors as well as a statement from FTX saying they would not have anything to say about the deal.
A week before the rumored deal, BlockFi received a $250 million line of credit from FTX to help the company. Prince said that the line of credit would bolster their balance sheet and platform strength. In March 2021, the platform's value was valued at $3 billion after raising $350 million in a Series D round.