FTX Is Buying Fallen Unicorn BlockFi for Mere Pennies: Report !!!

[tokyohd]

Cryptocurrency giant FTX is finalizing a deal to acquire troubled lender BlockFi for just $25 million, according to a report published by CNBC.

The aforementioned sum is just a drop in the bucket compared to the $5 billion valuation the company sought a year ago. The prominent cryptocurrency lending company was also vocal about its plans to go public.

Last March, BlockFi landed a $350 million Series D funding round that boosted its valuation to $3 billion. The acquisition deal is expected to be inked by the end of this week, the report says.

Details:
https://u.today/ftx-is-buying-fallen-unicorn-blockfi-for-mere-pennies-report

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[cryptoaddictchie]

Thats a huge blow to blockfi when this deal materialize. Imagine a $3billion worth company now at a sudden fall off $25million price. Probably FTX seeking the moment to expand by aggresively taking advantage of the market downfall. He wouldnt buy it if he knew that there is no hope on crypto. But this is a good move also for blockfi to save some dollars. By FTX, ptobably they can support it as they are a good business exchange platform that still has a good revenue on trading fees.

[tbct_mt2]

It will be a trend when superb whales will play their gamers, kill whales and make such buying on fallen companies like FTX bought BlockFi.

It creates panic in short term, during bearish months but it is good for the market in general because it helps to eliminate weak platforms, over leveraging platforms and bad risk-managed ones. It is better for cryptocurrency in long term.

FTX is like a liquidator in cryptocurrency industry as I read from news and media. The approach of FTX and RBF are different than CZ and Binance. CZ does not like the idea to rescue bad and fallen projects. He want to let it be, survive or die, it depends on those projects and Binance does not want to release any rescue effort.

At least now, it is what Binance and CZ said but they can flip their words later. In the end of business deal, profit is all the things.

[X-ray]

That's shit. SBF is doing so well about what step that must be taken. A healthy company like FTX with active revenue can even acquisition more and more dead defi like blockfi. If this will be happening and im sure that if so many platforms will be acquired by the centralized exchange site.

Lenders must have learned from what already done by the centralized exchange site, and so far cex is always trying to acquisition more and more dead platforms in the crypto.

I just curious how much money owned by cex

[EmmaGod]

News like this reminds me of the possibilities in the cryptocurrency space. Who can imagine that a project with a networth of $3 billion few months ago would be bought for $25 million now. I doubt something of this nature happens in any other industry. Let's see if it would end up being the case or there are some other information that is undisclosed and has contributed to this development.

[tvplus006]

News like this reminds me of the possibilities in the cryptocurrency space. Who can imagine that a project with a networth of $3 billion few months ago would be bought for $25 million now. I doubt something of this nature happens in any other industry. Let's see if it would end up being the case or there are some other information that is undisclosed and has contributed to this development.

If we buy coins with a 95% discount on the bear market, then large capital makes similar purchases, buying projects for only 5% of the cost. In both cases, one goal is pursued, making a profit on the bull market. It remains obvious that FTX has more accurate information about the prospects for the revival of BlockFi, otherwise this transaction would not have taken place.

[Jackl87]

Cryptocurrency giant FTX is finalizing a deal to acquire troubled lender BlockFi for just $25 million, according to a report published by CNBC.
The aforementioned sum is just a drop in the bucket compared to the $5 billion valuation the company sought a year ago. The prominent cryptocurrency lending company was also vocal about its plans to go public.
Last March, BlockFi landed a $350 million Series D funding round that boosted its valuation to $3 billion. The acquisition deal is expected to be inked by the end of this week, the report says.

I have not heard of that news before so thanks for posting that. I have to admit though that i am still pretty doubtful if this deal will really happen. I mean i understand that the bear market has hit a lot of projects in terms of price and valuation but the numbers that are stated here just seem to far off in my opinion.
I hardly doubt that BlockFi is now worth only 1/120th of it's value that i had a year ago. This can not be explained by the current bear market or by other normal market movements. I know that Defi-projects took a hard hit after the events of Terra Luna but to lose more than 99% of the value just seems to much.

[usekevin]

FTX was the only exchange with the no fees for most the transaction.The people who holding their funds in this wallet was very huge compared to other exchange.In other exchanges,they made the investment and staking.But in this FTX,huge bulk transaction was take place every day.When the transaction was made by this in FTX was huge,we can imagine a huge way forward in FTX.

[Psynthax]

News like this reminds me of the possibilities in the cryptocurrency space. Who can imagine that a project with a networth of $3 billion few months ago would be bought for $25 million now. I doubt something of this nature happens in any other industry. Let's see if it would end up being the case or there are some other information that is undisclosed and has contributed to this development.

That reminds me with luna even celcius as well. Nothing new in the crypto from the big project to be dumped to the bottom and become a garbage project or even bankrupt. that's why crypto is a very high risk investment and place to put your money in but really profitable enough if you can manage it very well. The world is not fine right now. There are so many problems appeared even some countries going to collapse.

[masterrex]

IMO, I believe that the FTX team is not that dumb to acquire a not performing company like BlockFi without any practical reason, it means that the FTX team has seen an opportunity for BlockFi to integrate into a larger ecosystem like FTX in that case let us give them the benefit of the doubt for that big decision and let us wait what will happens next.

[DanWalker]

IMO, I believe that the FTX team is not that dumb to acquire a not performing company like BlockFi without any practical reason, it means that the FTX team has seen an opportunity for BlockFi to integrate into a larger ecosystem like FTX in that case let us give them the benefit of the doubt for that big decision and let us wait what will happens next.

Sam is a very smart guy, this is not a rescue but a takeover. He certainly saw the potential of blockFi, this acquisition will help FTX grow stronger and will be a direct competitor to Binance and coinbase.

$25 million is too low a price compared to BlockFi's $4.8 billion valuation in its most recent funding round. IMO, this is a very difficult deal to make at such a low price.

[Rikafip]

Cryptocurrency giant FTX is finalizing a deal to acquire troubled lender BlockFi for just $25 million, according to a report published by CNBC.

Hm, I am not so sure that amount of $25 million is correct as according to Zac Prince (Blockfi CEO) total amount will be be much higher, up to $680 million which to me sounds way more realistic than that number mentioned in the article you shared.


Full twitter thread with more info https://twitter.com/BlockFiZac/status/1542934040092856321

IMO, I believe that the FTX team is not that dumb to acquire a not performing company like BlockFi without any practical reason, it means that the FTX team has seen an opportunity for BlockFi to integrate into a larger ecosystem like FTX in that case let us give them the benefit of the doubt for that big decision and let us wait what will happens next.

Even those big boys make very stupid moves, as seen by that Luna, Celsius and 3AC fiasco (and many people involved in those were far from stupid) so I wouldn't be so sure that they always know what they are doing.

[Daltonik]

3AC has already pulled Voyager Digital, which suspended all trading operations, deposits, withdrawals, as well as loyalty rewards, Voyager executive director Stephen Ehrlich called this a difficult but necessary measure caused by the difficult market situation. However, when they lent funds to 3AC, they apparently thought only about getting benefits.

https://twitter.com/Ehrls15/status/1542943887899123718



more on finance.yahoo: https://finance.yahoo.com/news/voyager-digital-provides-market-184400883.html

[tomahawk9]

3AC has already pulled Voyager Digital, which suspended all trading operations, deposits, withdrawals, as well as loyalty rewards, Voyager executive director Stephen Ehrlich called this a difficult but necessary measure caused by the difficult market situation. However, when they lent funds to 3AC, they apparently thought only about getting benefits.

https://twitter.com/Ehrls15/status/1542943887899123718

https://i.imgur.com/pRHKjYL.jpg

more on finance.yahoo: https://finance.yahoo.com/news/voyager-digital-provides-market-184400883.html

Well, that plus the fact that Voyager can and will use their customer's funds ^[1], probably means this is it, anyone who still had a glimmer of hope, it's over. Voyager might get bought by another company, but this cruel summer destroyed their reputation.

1. "Voyager will use Customer’s Cryptocurrency to engage in staking and lending activities." Source

[antsam]

What's wrong with this transaction? don't all of them have business considerations that the public can't know, and it's only natural that FTX can do it, because they have the money and power