Cryptocurrency exchange FTX is in talks to acquire a stake in cryptocurrency lender BlockFi, the Wall Street Journal reported, citing people familiar with the matter.
The companies had previously announced Tuesday that BlockFi had signed a term sheet with FTX for a $250 million revolving credit facility, which will give BlockFi critical access to capital amid a defeat in the digital currency market.
According to the Wall Street Journal, no share deal has yet been reached and talks are ongoing.
In a statement, a BlockFi spokesperson said the company “does not comment on market rumours.”
“We are still negotiating the terms of the deal and are unable to share more information at this time. We expect to share more about the terms of the deal with the public at a later date,” the BlockFi spokesperson said.
An FTX spokesperson declined to comment.
Last week, BlockFi said it would reduce its workforce by about 20%, in addition to implementing other cost-cutting measures, such as reducing marketing spend and executive compensation.
Aggressive rate hikes by the US Federal Reserve and fears of a recession have fueled turmoil in equities and a sell-off in cryptocurrencies.
Over the weekend, the world’s largest cryptocurrency, bitcoin, fell below its key $20,000 level for the first time since December 2020.
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