Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, at the Bitcoin 2021 conference in Miami, Florida, on June 5, 2021.
Eva Marie Uzcategui | Bloomberg | Getty Images
FTX has signed a deal giving it the option to buy crypto lending company BlockFi.
The agreement gives FTX the ability to buy BlockFi at a maximum price of $240 million, the company announced Friday. The deal price is based on certain performance targets. The company it did not give a minimum deal price.
CNBC reported Thursday that a term sheet would be signed by the end of this week, with a source saying it could be as low as $25 million. Even at the high end of FTX’s deal price, it marks a significant decrease in the value of BlockFi. The Jersey City, New Jersey-based company was last worth $4.8 billion, according to PitchBook.
The term sheet also pads BlockFi’s balance sheet with a larger loan.
FTX increased a previous $250 million revolving credit facility to a total $400 million. BlockFi executives said the...
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