NewsletterFTX CEO SBF Acquiring Crypto Miners Next? Here’s The Truth
FTX’s CEO Sam Bankman-Fried is on an acquisition spree. After rescuing many crypto firms from insolvency risks, FTX’s U.S. subsidiary has finally entered a deal to acquire BlockFi for around $240 million. Today, FTX’s CEO SBF cleared that he is open to acquiring more firms, including beleaguered crypto miners.
SBF Lacks Interest in Acquiring Miners, But Happy to Help Them
FTX’s CEO Sam Bankman-Fried (SBF) in a tweet on July 2 said he might not be potentially looking to acquire crypto miners, but is open to having a discussion. The tweet reads:
“er to be clear I said roughly “meh not particularly looking at miners, but sure, happy to have conversations with any companies”
SBF has backed the beleaguered crypto firms including Voyager Digital and BlockFi, providing revolving credit facility through its subsidiary Alameda Research. Moreover, BlockFi which was rumored to be acquired for $25 by FTX was denied by BlockFi’s CEO Zac Prince that they aren’t up for sale for just $25 million.
Meanwhile, BlockFi received a better deal from Canada-based crypto lending firm Ledn of fundraising up to $400 million and an equity deal worth $50 million. SBF doesn’t want to leave the opportunity, so he offered to acquire BlockFi for $240 million. Currently, the total value of the deal is $680 million, as it includes a $400 million revolving credit facility.
Bloomberg on Friday reported that SBF is open to exploring acquisitions in the battered crypto-mining industry next as miners are facing financial constraints after the crypto market crash.
“There might come along a really compelling opportunity for us — I definitely don’t want to discount that possibility.”
FTX Spending Billions on Acquisitions
SBF had revealed his plans of spending billions on acquiring other companies as they look to expand its product offerings. Moreover, SBF has remained committed to his plans, while rescuing other crypto companies, despite weak market conditions. FTX has even approached Celsius for bailout, but refrained due to the crypto lender’s weak balance sheet.
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