$4.8 billion valued crypto lending platform BlockFi will be acquire by crypto exchange FTX.us.
On 1 June, Zac Prince, chief executive officer of BlockFi, took to Twitter to inform the crypto industry that BlockFi firm agreed with the FTX.US’ deal to acquire BlockFi.
Under this agreed deal, FTX.US will purchase BlockFi for $240 million, which is the expected price of BlockFi under the current critical situation due to extreme market conditions.
FTX.US will provide $400 million credit to BlockFi, to handle the situation. So the total acquisition value of BlockFi is revolving around $680 million.
BlockFi CEO also said that they are working normally as they did in the past and also they didn’t use the credit facility. But noted that they increased the interest rate for the customers, to increase the inflow of funds.
Prince claimed that the present situation for BlockFi did not happen because of its operations. Indeed, particular events with Three Arrow Capital & Celsius acted as a catalyst to create panic among the people, who use crypto lending platforms.
So according to BlockFi’s CEO, the majority of the crypto lending platform users are in panic and are withdrawing their funds and that negative impact can be seen with BlockFi.
Further, Prince added that efforts by BlockFi will always remain in favor of the safety of customers’ funds. And the latest step will not only increase the health of BlockFi but also will help to push the adoption of crypto financial services globally.
Read also: El Salvador purchased 80 Bitcoins