SBF’s FTX is reportedly planning to acquire a stake in BlockFi

Crypto trading platform FTX is reportedly planning to acquire a portion of crypto exchange and wallet BlockFi after the former issued a $250 million credit to the latter.

According to a report by WSJ, the exchange giant is in talks with BlockFi regarding the purchase of a stake in the firm. However, the two have not disclosed any equity agreement till now. 

BlockFi recently received a $250M credit facility from FTX

The rumored discussions came after BlockFi signed a term agreement with FTX on Tuesday to get a $250 million revolving credit facility, as TheCoinRise reported. A BlockFi representative stated:

“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.”

Sam Bankman-Fried (SBF), FTX CEO and founder, is known for helping and supporting crypto projects in recent days. The bear market, which has forced tons of crypto companies to lay off their workforces, results in a stubborn situation. 

In order to cover losses from its exposure to Three Arrows Capital, trading company Alameda Research, managed by SBF, said on Wednesday that it had loaned 15,000 Bitcoin (BTC) to Voyager Digital.

The two companies “have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion” surrounding the market slump. According to SBF:

“Even if we weren’t the ones who caused it or weren’t involved in it. I think that’s what’s healthy for the ecosystem, and I want to do what can help it grow and thrive.”

VCs: "we'd love to help you backstop crypto firms and provide liquidity because we care deeply about preventing market contagion"

also VCs: "can we please do it for the one great company (after you fix it) and make a lot of money doing it, you can take the others k thx bye"

— SBF (@SBF_FTX) June 23, 2022

It’s unclear whether BlockFi’s reported financial issues or FTX’s rumored intention to buy a stake in the company were connected. Notably, the US SEC ordered BlockFi to pay $100 million to the organization and 32 state-level regulators as part of a settlement in February for purportedly unregistered securities.