Nexo once Offered To Save BlockFi For $850 M
Nexo offered to rescue BlockFi for $850 million when the company was in financial crisis.
June 25, 2009: Investment funds raise capital in order to avoid the term “agreement” with FTX.
June 30, 2009: Revelations about FTX’s deal and the number of loans that have been lent to 3AC.
July 2nd: The firm has confirmed that it will borrow $400 million from FTX. USA, including a deal for BlockFi to be acquired for $240 million
Nexo Offered To Save BlockFi For $850M 4Specifically, Nexo offered a deal of approximately $850 million that included: $30 million which represented 51% of BlockFi shares in equity;
$30 million paid to existing shareholders after successful registration of profit product S1 at the US Securities and Exchange Commission.
500 million credit line to solve liquidity problems
Nexo also has a 5-year call option for the remaining 49% equity of BlockFi, at a valuation 10 times the proposed. Also, BlockFi’s uninvested employee choices pool will be terminated. According to Antoni Trenchev, cofounder of Nexo, this provision was worth $288 million.
“I can confirm that BlockFi signed a deal with us over the summer. It was a better deal than FTX’s proposal but BlockFi’s management decided to go with FTX. We are confused and concerned about conflicts-of-interest because they chose a bad deal that doesn’t make economic sense.
Trenchev said that if BlockFi had accepted Nexo’s offer, they might not be in their current situation. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comChubbiCoincu NewsTags: 3ACBlockchainBlockFimarketNexoNexo officially