Crypto exchange FTX in discussion to acquire stake in BlockFi- WSJ

By Hannah Lang

(Reuters) -Cryptocurrency trade FTX is in talks to amass a stake in crypto lender BlockFi, the Wall Road Journal reported, citing folks accustomed to the matter.

The businesses had beforehand introduced on Tuesday that BlockFi had signed a time period sheet with FTX for a $250 million revolving credit score facility, which can give BlockFi essential entry to capital amid a rout within the digital foreign money market.

No fairness settlement has but been reached, and discussions are ongoing, based on the Wall Road Journal.

In an announcement, a BlockFi spokesperson stated the corporate “doesn’t touch upon market rumors.”

“We’re nonetheless negotiating the phrases of the deal and can’t share extra info right now. We anticipate sharing extra on the phrases of the take care of the general public at a later date,” the BlockFi spokesperson stated.

A spokesperson for FTX declined to remark.

Final week, BlockFi stated it was decreasing its headcount by about 20%, along with implementing different cost-cutting measures like decreasing advertising spending and govt compensation.

Aggressive price hikes by the U.S. Federal Reserve and recession fears have led to a turmoil in equities and sparked a sell-off in cryptocurrencies. Final weekend, the world’s largest cryptocurrency, bitcoin, dropped beneath the important thing $20,000 degree for the primary time since December 2020.

(Reporting by Hannah Lang in Washington; Enhancing by Elaine Hardcastle and Alistair Bell)

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