The post FTX or Canada-Based Ledn Which Firm Will Acquire Struggling Crypto Lender BlockFi? appeared first on Coinpedia – Fintech & Cryptocurreny News Media| Crypto Guide
As per Bloomberg reports, the struggling cryptocurrency lender BlockFi Inc., which is currently in negotiations with industry powerhouse FTX, has been approached about a merger with a different party that includes rival Ledn.
Previously, as per CNBC reports FTX was close to signing a deal to purchase BlockFi for $25 million which is 99 percent less than prior estimates of $25 billion. On the contrary, the BlockFi CEO Zac Prince comments made the speculations clear.
“I can 100% confirm that we are not being sold for $25M”, said in response to a tweet.
Ledn Entails Fresh Funding
To challenge the powerhouse FTX, the Canadian crypto lender Ledn has come up with a better proposal for BlockFi. Ledn’s proposal incorporates new funding in contrast to FTX, which is seeking a complete takeover.
If sources are to be believed, Ledn would provide a $50 million equity contribution in addition to leading a $400 million funding round. Another potential investor in the deal is ParaFi Capital.
Commenting on the matter, Ledn Chief Executive Officer Adam Reeds said:
“Ledn is now assessing a number of options to expand its leadership in financing for digital assets and beyond because of its operational strength. We are unable to provide any additional information at this time.”
At the moment, BlockFi issued a response claiming that it does not comment on market speculation.
Users can borrow money from Canadian startup Ledn and earn interest rates of up to 7.5 % annually on their Bitcoin and USDC stablecoins. Through this method, users can swap Bitcoin for USDC.
Like some of its rivals, Ledn doesn’t invest in decentralized finance (DeFi) apps to boost returns. Few of his investors are big bulls like Coinbase Ventures, Valor Capital Group, and Susquehanna Private Equity Investments.
A Liquidity Crisis!
BlockFi is among the enterprises affected by troubles at Three Arrows Capital and a lack of liquidity in the industry. It had admitted, without naming the person, that FTX presented BlockFi with a $250 million revolving credit line earlier in June 2022.
We can anticipate a BlockFi agreement anytime soon because there are so many rumors floating around.
However, if FTX ultimately decides to purchase BlockFi, it won’t be the first time that it has offered a bailout as a starting point for term sheet negotiations. Similar activities were undertaken by the exchange with respect to the Japanese fintech firm Liquid Group, and in April, a deal to acquire the latter for an undisclosed sum was finally concluded.