The businesses had beforehand introduced on Tuesday that BlockFi had signed a time period sheet with FTX for a $250 million revolving credit score facility, which is able to give BlockFi essential entry to capital amid a rout within the digital currency market.
No fairness settlement has but been reached, and discussions are ongoing, in response to the Wall Road Journal.
In an announcement, a BlockFi spokesperson stated the corporate “doesn’t touch upon market rumors.”
“We’re nonetheless negotiating the phrases of the deal and can’t share extra data at the moment. We anticipate sharing extra on the phrases of the take care of the general public at a later date,” the BlockFi spokesperson stated.
A spokesperson for FTX declined to remark.
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Final week, BlockFi stated it was lowering its headcount by about 20%, along with implementing different cost-cutting measures like lowering advertising and marketing spending and govt compensation.
Aggressive price hikes by the U.S. Federal Reserve and recession fears have led to a turmoil in equities and sparked a sell-off in cryptocurrencies. Final weekend, the world’s largest cryptocurrency, bitcoin, dropped under the important thing $20,000 stage for the primary time since December 2020.
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