Don't miss CoinDesk's Consensus 2022, the must-attend crypto & blockchain festival experience of the year in Austin, TX this June 9-12.
BlockFi and FTX US have reached a deal that will provide the embattled crypto company with a $400 million credit facility.
The deal also gives FTX US, a unit of Sam Bankman-Fried's FTX crypto exchange, the right to acquire BlockFi and will, according to BlockFi CEO Zac Prince, "protect client funds."
In a tweet Friday, Prince said the parties agreed to the "definitive agreement" one day prior. He said it is still subject to shareholder approval. The deal has a total value of "up to $680 million."
— Zac Prince (@BlockFiZac) July 1, 2022
BlockFi's valuation would appear to be a moving target. While earlier reports listed it at $25 million, the terms agreed to Friday give BlockFi a "variable price of up to $240 million based on performance triggers." Prince said BlockFi has not drawn from the credit facility.
"As a matter of principle, we fundamentally believe in protecting client funds. Not only because it’s absolutely the right thing to do, but this also benefits the ongoing health and adoption of crypto financial services worldwide. Therefore, it was important to add capital to our balance sheet to bolster liquidity and protect client funds," Prince said in the tweet.
This is a developing story and will be updated.