Is FTX about to buy BlockFi for $25million?

Following a $250 million emergency line of credit provided to BlockFi from FTX, CNBC recently reported the popular exchange is about to buy the lending platform, citing “sources”. The American news outlet claims the deal will be made for $25million, however, the CEO of BlockFi – Zac Prince took it to Twitter to disprove these claims, stating his company is not being sold for $25 million, but also not denying BlockFi is being sold.

Lots of market rumors out there - I can 100% confirm that we aren’t being sold for $25M.

I encourage everyone to trust only details that you hear directly from @BlockFi.

We will share more w you as soon as we can.
— Zac Prince (@BlockFiZac) June 30, 2022

The rumor, started by CNBC, has sparked discussion and speculations as the most recent private valuation of BlockFi stands at $4.8 billion. BlockFi is one of the many crypto projects that have been struggling with liquidity problems during the current bear market and worsening global economic conditions. The recent 3AC insolvency also affected BlockFi directly as the lending platform was forced to liquidate their overcollateralized margin loan. Additionally, BlockFi announced it would cut staff by 20% due to a “dramatic shift in macroeconomic conditions.” in early June.

FTX has been seen as a last resort lender in the crypto industry, providing struggling companies with much-needed funds, as such the exchange was also rumored to be in talks of making a deal with Celsius but walked away due to a $2 billion hole in its balance sheet.