Imagine it is March 2021, and you’re leading a funding round where you’ve raised $350 million at a $3-billion valuation.
Now it’s July 2021, and you’re to raise $500 million at an almost $5 billion valuation.
Now, imagine it is June 2022 — and you’ve taken a $250-million credit line because you’re teetering on insolvency. Just days later, you’re looking at selling the company for just $25 million — to the same people who extended your credit line.
Enter, BlockFi. Enter, FTX.
A term sheet is almost completed and expected to be signed by the end of the week that will see the second-largest crypto firm, FTX, acquire embattled crypto lending platform BlockFi for a paltry $25 million, CNBC reported Thursday, citing sources familiar with the situation. — a shocking 99.5% less than its near $5-billion valuation.
CEO Zac Prince said in a tweet just before 3 p.m. Thursday that the figure reported by CNBC is incorrect.
“Lots of market rumors out there – I can 100% confirm that we aren’t being sold …
Full story available on Benzinga.com