Ledn Makes a Rival Offer for Troubled Crypto Lender BlockFi
- According to a rumor, BlockFi CEO Zac Prince’s business had agreed to sell to FTX for about $25 million. Prince disputed this.
- On June 13, Prince said the company will be letting go of 170 employees, or almost a fifth of its total employment.
- The story quoted sources with knowledge of the situation and contrasted Ledn’s offer with that of FTX, which is reportedly for a full acquisition.
BlockFi, which has been in the news recently for its alleged financial troubles, has reportedly been approached by Ledn and other investors with a competing offer to FTX’s. This comes as a surprise to many, as it was thought that BlockFi was all but sold to FTX.
However, it seems that Ledn is not ready to let BlockFi go without a fight. Ledn, which is itself a crypto lending platform, has apparently put together a group of investors who are willing to make an offer for BlockFi. The details of the offer are not yet known, but it is sure to be lower than FTX‘s reported bid.
Ledn’s involvement in the bidding war for BlockFi shows that it is serious about becoming a major player in the space. It will be interesting to see how this plays out. If Ledn is successful in acquiring BlockFi, it would be a major coup for the company. However, even if Ledn does not succeed in acquiring BlockFi, its involvement shows that it is poised to become a major force in the cryptocurrency lending industry.
According to the source, which relied on persons with knowledge of the situation, Ledn’s offer included a new investment round while FTX’s purported offer calls for a full purchase. A significant ownership position in BlockFi would reportedly be given to the investor as part of the fundraising, which would be up to $400 million in total and $50 million in equity.
Zac Prince, CEO of BlockFi, took to Twitter on Thursday afternoon to deny reports that his company had agreed to sell for just $25 million. CNBC had first reported the news earlier in the day. Prince said that BlockFi is not currently in talks with FTX or any other potential buyer. He added that the lender is still on track to close a funding round valued at $1 billion, despite a recent decline in valuation from $3 billion in March 2021.
BlockFi, like other cryptocurrency lenders, has been severely impacted by the sudden decline in the cryptocurrency market that culminated in a full panic in June. On June 13, Prince disclosed that the company will lay off about 170 employees, or about a fifth of its staff. Later in June, Prince claimed that FTX had granted BlockFi a $250 million loan.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
