FTX nears deal to acquire BlockFi for $25 million, reports say

Digital asset exchange FTX is nearing a deal to acquire crypto lender BlockFi for $25 million, or a 99% discount to its most recent private-market valuation, according to a report in CNBC.

The deal could take months to close, according to the report, but a term sheet could be signed by the end of this week. The news comes one week after BlockFi announced it had secured a $250 million line of credit with FTX to bolster its balance sheet amid broad declines in major cryptos including bitcoin and ether .

A separate report in the Block stated that the deal would involve turning the $250 million loan into equity.

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