Cryptocurrency alternate FTX is in talks to accumulate a stake in crypto lender BlockFi, the Wall Road Journal reported, citing folks aware of 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 is able to 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, in accordance with the Wall Road Journal.
In a press release, 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 data presently. We anticipate sharing extra on the phrases of the cope with 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 US Federal Reserve and recession fears have led to a turmoil in equities and sparked a sell-off in cryptocurrencies.
Final weekend, the world’s greatest cryptocurrency, bitcoin, dropped beneath the important thing $20,000 stage for the primary time since December 2020.
(Apart from the headline, this story has not been edited by IHNS workers and is revealed from a syndicated feed.)