FTX Closes in on a Deal To Buy Embattled Crypto Lender BlockFi for $25 Million in a Fire Sale

FTX is swooping in to buy crypto lender BlockFi for pennies on the dollar, CNBC reported Thursday, citing sources familiar with the matter. From a report: The term sheet is almost over the finish line and expected to be signed by the end of the week, according to one source, who asked not to be named because the deal discussions were confidential. FTX will pay roughly $25 million -- 99% below BlockFi's last private valuation. Jersey City, New Jersey-based BlockFi was last valued at $4.8 billion, according to PitchBook.

An acquisition could take multiple months to close, and the price tag could shift between now and Friday, a source said. Friday also marks the end of the quarter, which the person said was a catalyst for getting a deal signed. The Wall Street Journal first reported that FTX was seeking an equity stake in the company, while the Block reported this week that an outright deal was in the works. Update: BlockFi has denied the reporting. ' I can 100% confirm that we aren't being sold for $25M,' the company chief executive said.

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