Deal to Buy BlockFi Moving Forward – FTX and Ledn in the Mix: Report [u]

BlockFi, a crypto trading marketplace and yield generator, apparently has another suitor. As has been previously reported, FTX, founded by Sam Bankman-Fried, has provided a $250 million line of credit while entering into a discussion to potentially purchase the firm. Rumors published by CNBC indicate a significant haircut on the valuation with a deal priced at $25 million – a far cry from previous valuations in the billions of dollars.

Yeaterday, BlockFi CEO and founder Zac Prince dispelled rumors of the $25 million purchase price but alluded to discussions regarding the future of his firm.

Today, reports indicate the BlockFi is in discussion with FTX but also Ledn.

Citing “three people with knowledge of the matter” Bloomberg is reporting that Ledn is pitching a funding round of up to $400 million along with $50 million in equity. The deal would give Ledn a “significant portion of the company.”

Ledn is a Canadian Fintech, based in Toronto, that provides digital asset services like a Bitcoin Savings Account and Bitcoin-backed Loans

The report quoted Ledn CEO Adam Reed stating that they are currently evaluating a number of opportunities to broaden its leadership in digital asset lending and more. Asked specifically about BlockFi, Reed said “At the moment, we cannot share any additional details.”

During an extreme period of market volatility and an overall decline in all assets, FTX has taken the opportunity to shop for investment as there is blood in the streets. Sam Bankman-Fried has emerged as a lender of last resort, kind of like a crypto-Fed, to backstop some firms while sizing up potential acquisitions. BlockFi was a firm that has hit hard by the digital asset decline. The fact there are several firms are said to be kicking the tires of BlockFi as a potential acquisition is certainly better than a fire sale just to keep the company afloat.

Update: CNBC is reporting, once again, that BlockFi may be sold for as little as $25 million or up to $50 million. The deal is still in the works but effectively shareholder equity has been “wiped out.” A deal is expected to be signed before the holiday weekend so news may be forthcoming later today. BlockFi last raised capital at a valuation of around $4.8 billion.



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