BlockFi stake to be purchased by cryptocurrency exchange FTX: Report

According to persons familiar with the situation, the Wall Street Journal stated that crypto exchange FTX is in discussions to purchase a stake in cryptocurrency lender BlockFi.

According to persons familiar with the situation, the Wall Street Journal stated that cryptocurrency exchange FTX is in discussions to purchase a stake in cryptocurrency lender BlockFi.

BlockFi had previously inked a term sheet with FTX for a $250 million revolving credit facility, which will give BlockFi essential access to capital during a collapse in the digital currency market, the businesses had previously stated on Tuesday.

The Wall Street Journal reports that no equity agreement has yet been struck and that talks are still going on.

BlockFi “does not comment on market rumours,” a spokeswoman for the company stated in a statement.

“We are still negotiating the terms of the deal and cannot share more information at this time. We anticipate sharing more on the terms of the deal with the public at a later date,” the BlockFi spokesperson said.

A FTX representative declined to comment.

BlockFi announced last week that it was downsizing its personnel by around 20% in addition to taking other cost-saving steps like lowering marketing expenses and executive salaries.

Fears of a recession and the US Federal Reserve’s aggressive rate increases have caused instability in the stock market and a sell-off in cryptocurrencies.

The world’s most popular cryptocurrency, bitcoin, fell below the crucial $20,000 threshold over the past weekend for the first time since December 2020.