CNBC reported Thursday that FTX is close to a deal to buy BlockFi for about $25 million, a deal that values the company far below its previous valuation.
Sam Bankman- Fried is the CEO of FTX.
A source tells CNBC that the deal is expected to close next week.
A $350 million Series D funding round last March valued the company at $3 billion, and The Information reported last June that BlockFi was seeking a $5 billion valuation.
The vice president of communications for BlockFi said in a statement to Forbes that the company doesn't comment on market rumors.
FTX, founded by a 30-year-old billionaire CEO, didn't reply to Forbes' request for comment.
According to The Wall Street Journal, FTX was looking to acquire a stake in BlockFi, while The Block reported that FTX was looking to buy the lender. FTX extended a credit line to BlockFi. It was reported earlier this month that BlockFi was looking for $100 million in new funding. The company cut its workforce by 20% due to a "dramatic shift in macroeconomic conditions" that had a negative impact on the company's growth rate. In the year 2022, the market for cryptocurrencies has crashed and is currently worth less than it was a year ago.
It's 20 billion. Forbes calculates that Bankman-Fried is the 75th wealthiest person in the world because of his stake in FTX and his firm. The firm was valued at $32 billion after raising $400 million in January.
Bankman-Fried told Forbes last week that his company was willing to do a bad deal if it meant stabilizing the situation and protecting customers.
Bankman- Fried Warns that some of the exchanges are already insolvent.
FTX is close on a deal to buy BlockFi for $25 million.
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