Crypto lender Nexo reportedly provided to purchase rival BlockFi for $850M in July

Cryptocurrency lender Nexo had proposed to accumulate rival BlockFi for about $850M in July, when the latter was struggling to remain afloat within the face of an industry-wide downturn, The Block reported Thursday, citing an funding proposal doc.

BlockFi was mentioned to have turned down Nexo’s supply and moved ahead to be bailed out by FTX US, which filed for Chapter 11 final week. FTX US’s supply was value some $680M however the deal by no means went by way of. Word that BlockFi suffered deep losses throughout the summer season given its publicity to bankrupt crypto hedge fund Three Arrows Capital.

The Nexo deal included $30M for the acquisition of 51% of BlockFi, $30M for BlockFi’s current stakeholders upon the S1 registration of its yield product, and a $500M credit score line to deal with the corporate’s liquidity situation, The Block famous. It was “a greater different to the FTX proposal,” Nexo co-founder Antoni Trenchev informed The Block, “however BlockFi’s administration selected to go along with FTX.” The remaining 49% stake was value about $288M.

The troubled lender’s downfall has accelerated for the reason that summer season given its deep ties to Alameda Analysis, a buying and selling agency that was a part of Sam Bankman-Fried’s crypto empire that not too long ago fell aside. In actual fact, “Alameda was BlockFi’s largest debtor,” Trenchev added. BlockFi was then pressured to pause buyer withdrawals final week and extra not too long ago eyed chapter safety.

Neither BlockFi nor Nexo instantly responded to Looking for Alpha’s request for remark.

Beforehand, (June 21) BlockFi secured a $250M credit score line from FTX.