Morgan Creek Digital is seeking to raise $250 million from investors to acquire a majority stake in blockchain platform BlockFi. CoinDesk writes about this with reference to the head of the venture capital company Mark Yusko.
The recording of Yusko’s conversation with investors, which took place on June 21, fell into the hands of journalists. According to the top manager, the Morgan Creek initiative is a response to the BlockFi agreement with the FTX exchange.
On Tuesday, BlockFi CEO Zach Prince revealed that his company had signed a preliminary $250 million revolving line of credit with FTX.
Later, information appeared in the media about the plans of the bitcoin exchange to acquire a stake in BlockFi.
Yusko stressed that the initial agreement between the parties allows FTX to buy the landing platform “at almost zero price.” If the exchange seizes this opportunity, it will “clean up” existing shareholders, including management and employees with securities options, as well as venture capital investors.
In a conversation with CoinDesk, a BlockFi representative noted that the parties have not yet reached a final agreement and are discussing the details of the deal.
Yusko believes that if FTX decides to take over the platform after extending the credit line, only the largest investors in BlockFi’s latest funding round will get at least some of their money back.
Morgan Creek, which has participated in several investment rounds, will be in a difficult position, he explained.
“The only alternative is to raise an equivalent amount of capital, which is what we are working on. I would say the probability of this is 10%, but not zero. […] It’s not over yet, but the situation definitely looks grim,” Yusko said.
He stated that the venture company is not opposed to a joint deal with FTX, where both parties will enter the capital.
Yusko said he spoke with a potential lead investor who could write a check for $100 million, as well as two other interested parties willing to contribute up to $50 million.
Recall, on May 25, information appeared in the media about the plans of the Goldman Sachs conglomerate to raise $2 billion to buy the assets of the Celsius Network crypto-lending platform in the event of its bankruptcy.
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