FTX Uses FTT To Pay $84 Million Blockfolio Acquisition Deal

Key Points:

• In order to finance the acquisition of the portfolio management platform Blockfolio in 2020, FTX employed the exchange token FTT.
• The controlling interest in Blockfolio was acquired by FTX for around $84 million in 2020, making it one of the biggest cryptocurrency acquisitions at the time. FTT tokens made up almost 94% of the payment.
• The Blockfolio purchase was reportedly financed by a combination of cash, cryptocurrency, and equity, according to news reports at the time it was disclosed. According to the financial filings, the transaction valued Blockfolio at roughly $160 million and offered it a 52% stock stake with the option to purchase the other 48% within two years.

According to Bloomberg, FTX used its own exchange token, FTT, to pay for the acquisition of the portfolio tracking website Blockfolio in 2020.

The controlling interest in Blockfolio was acquired by FTX for around $84 million in 2020, making it one of the biggest cryptocurrency acquisitions at the time. Bloomberg investigated the paperwork, and they revealed that 94% of the payment was made in FTT tokens, a cryptocurrency that FTX created.

Unreported information about the Blockfolio acquisition provides an insight into the former FTX CEO Sam Bankman-Fried‘s appetite for wacky financial engineering and an early desire to amass clients through big acquisitions. With a buyout spree for companies like Voyager and BlockFi, Bankman-Fried doubled down on that philosophy this year, but those transactions were scuppered when FTX collapsed in November.

Although it was widely reported at the time that the exchange made the payment with a combination of cash, cryptocurrency, and equity, the financial details of FTX’s acquisition of Blockfolio were previously unknown.

According to the financial filings, the transaction valued Blockfolio at roughly $160 million and offered it a 52% stock stake with the option to purchase the other 48% within two years.

The information comes in response to a tardy complaint filed yesterday by the US Securities and Exchange Commission, which asserts that FTT is a security. It made it clear that FTX used the money it received from the sale of FTT tokens to support its commercial activities.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

Coincu News