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Bloomberg learns of Ledn’s BlockFi offer

  • July 1, 2022
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Financially struggling crypto lending firm BlockFi has been approached by rival platform Ledn with a deal. It was reported by Bloomberg, citing sources. According to the agency, Sam

Bloomberg learns of Ledn’s BlockFi offer

Bloomberg learns of Ledn’s BlockFi offer
Bloomberg learns of Ledn’s BlockFi offer

Financially struggling crypto lending firm BlockFi has been approached by rival platform Ledn with a deal. It was reported by Bloomberg, citing sources.

According to the agency, Sam Bankman-Fried is in talks with FTX crypto exchange BlockFi about a potential acquisition. CNBC stated that the estimated purchase amount was $25 million, while in March 2021 the company’s valuation reached $3 billion.

BlockFi co-founder and CEO, Zach Prince, denied the news:

“There are a lot of rumors in the market – I can 100% confirm that we were not sold for $25 million. I urge everyone to trust only information directly from BlockFi. We will share more as soon as possible.”

According to Bloomberg sources, Ledn’s offer does not include a full buyout, but does include an additional capital allocation.

Under the terms, Ledn will spearhead a $400 million BlockFi funding round and also contribute $50 million in equity, as a result of which the company will receive a “significant stake” from a competitor.

Ledn CEO Adam Reeds said he “could not share any additional details at this time”.

“Ledn is currently evaluating a number of opportunities to expand its leadership in digital asset lending and beyond,” he said.

The Canadian platform offers the opportunity to borrow money, as well as earn up to 7.5% per year from deposits in bitcoin and USDC stablecoin. However, Bloomberg noted that unlike some competitors, Ledn does not invest in DeFi protocols to generate revenue.

BlockFi was among those affected by the liquidity crisis in the industry and the problems at Three Arrows Capital (3AC). The company admitted that they liquidated the position of a major client that did not meet the loan requirements. According to media reports, we are talking about 3AC.

Recall that journalists learned about Morgan Creek Digital’s plans to raise $ 250 million to acquire a controlling stake in BlockFi.

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Source: Fork Log

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