FTX Agrees to $884M Anthropic Shares Sale to Investors

The bankruptcy estate of the former cryptocurrency exchange FTX has reached an agreement to sell a substantial portion of its shares in the artificial intelligence company Anthropic. This deal, worth $884 million, includes a group of institutional investors and is a crucial phase of the current bankruptcy process of FTX.

FTX Sale Details and Key Participants

The deal includes selling around two-thirds of FTX’s 8% stake in Anthropic, which is a leading AI player. One of the major purchasers is ATIC Third International Investment Company LLC, an entity tied to the Mubadala sovereign wealth fund of the United Arab Emirates that will acquire shares worth $500 million.

Stakeholders in the acquisition also consist of Jane Street, a group of funds managed by Fidelity Management and Research, venture capital firm HOF Capital, and a syndicate of twenty others.

FTX to Sell Majority of Anthropic Stake for $884 Million (1)
Mubadala, Jane Street among the 24 buyers of FTX’s haul
Sales will add to sizeable cash pile for repaying creditors
By Emily Nicolle
(Bloomberg) — The estate of bankrupt crypto exchange FTX is offloading about… pic.twitter.com/OTx4Ck6QXh

— Martin Shkreli (e/acc) (@wagieeacc) March 25, 2024

This action is being taken as part of the steps that FTX’s estate is using to liquidate assets and raise cash to repay the creditors after the exchange was declared bankrupt as a result of fraud allegations. The approval of the sale is pending in bankruptcy court, having followed an earlier endorsement by a U.S. bankruptcy judge, which allowed FTX to commence the process of selling the shares.

Background and Valuation

The start of FTX’s investment in Anthropic can be dated back to 2021, when the trading platform sanctioned $500 million to Anthropic. The stake was one of FTX’s priciest shares, especially at the time when the AI market was growing due to the increasing amount of attention and spending aimed at AI technologies development.

The anthropic itself is an object of great interest and funding, with huge investments coming in from technology titans like Amazon.com Inc. and Alphabet Inc.’s Google.

In the period of FTX’s bankruptcy, the stake in Anthropic was worth over $1 billion, which clearly showed the increasing valuations of the AI sector. The current sale contract at $884M for most of the 5% share is an indicator of continuing demand and high valuation of AI-focused companies.

Strategic Implications and Process

The decision to divest itself from almost all of its position in Anthropic represents an operational decision by the FTX bankruptcy estate to obtain cash for creditor repayments. The sale increases the estate’s cash balances, emphasizing the large stakes and strong interest in AI technology companies.

Moreover, a deal with a broad set of investors shows the wide appeal and vision of Anthropic in the booming AI segment.

However, the sale process has been carefully organized, and it would require court approval and a long process of bargaining with the potential buyers. The participation of leading investors and companies in the transaction highlights the strategic significance of Anthropic in the AI arena and the importance attached to its technological know-how and market opportunities.

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