Ledn Puts Competing Bid To Acquire Troubled Crypto Lender BlockFi

Ledn has reportedly approached rival lender BlockFi, which is already in talks with FTX, with a competing acquisition deal.

Bishal Kumar Chanda2 min read
Ledn Puts Competing Bid To Acquire Troubled Crypto Lender BlockFi

Ledn has reportedly approached rival lender BlockFi, which is already in talks with FTX, with a competing acquisition deal.

Citing anonymous sources, Bloomberg reported that Ledn's proposal involves a fresh funding round, contrary to FTX's complete acquisition. Ledn proposed to lead a funding injection of up to $400 million, including $50 million in equity.

"Given its operational strength, Ledn is currently evaluating a number of opportunities to broaden its leadership in digital asset lending and beyond," Ledn CEO Adam Reeds said. "At the moment, we cannot share any additional details."

According to the report, the deal would give Ledn a significant portion of BlockFi. Furthermore, the report stated that venture capital firm ParaFi Capital would also invest.

Just like other crypto lending platforms, BlockFi has been hit hard by the latest crypto market downturn. After revealing significant exposure to crypto hedge fund Three Arrows Capital, BlockFi's valuation has plummeted significantly in recent weeks.

BlockFi CEO Zac Prince recently announced that the firm plans to lay off 20% of its workforce to remain profitable.

Currently, the crypto lender is in talks with crypto exchange FTX and has already received a $250 million credit facility. Reportedly, the Bankman-Fried-led crypto exchange also plans to purchase a stake in BlockFi.

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