Ledn puts in rival bid to acquire ailing lender BlockFi: Bloomberg

Quick Take

The proposal rivals an attempt by FTX, the exchange operator, to acquire BlockFi outright.
It would involve a funding injection of up to $400 million, according to a Bloomberg report.

Crypto startup Ledn has reportedly approached rival lender BlockFi about a potential acquisition.

Ledn proposed to lead a funding injection of up to $400 million, with a $50 million equity contribution, according to a report by Bloomberg, citing anonymous sources.

"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 in an emailed statement to The Block. "At the moment, we cannot share any additional details."

If accepted, the deal would give Ledn a significant portion of BlockFi, per the report. The report stated that ParaFi Capital, the venture capital firm, would also invest.

BlockFi has seen its valuation collapse in recent weeks after it emerged that the company had significant exposure to Three Arrows Capital, the troubled hedge fund. BlockFi is already engaged in talks with exchange operator FTX, which The Block revealed is looking acquire the lender outright after handing it a $250 million credit facility in late June.

BlockFi didn't immediately return a request for comment.

Updates with comment from Ledn.

Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.