Troubled crypto lender BlockFi has reportedly received a new proposal for its acquisition, said three sources familiar with the matter. This time the proposal has come from BlockFi’s Canada-based competitor Ledn challenging the already proposed bid by crypto exchange FTX.

As per an earlier report, FTX is currently negotiating with BlockFi. However, as per the CNBC report, FTX is willing to acquire BlockFi assets for just $25 million which is 99% lower than its recent valuations of $25 billion.

Challenging FTX, Canada-based crypto lender Ledn has come up with a better proposal for BlockFi. Unlike FTX which is seeking a full acquisition, Ledn proposal involves fresh funding.

The sources told Bloomberg that Ledn would lead a funding round of $400 million along with offering a $50 million equity contribution. ParaFi Capital is also likely to be another investor in the deal. Commenting on the matter, Ledn Chief Executive Officer Adam Reeds said:

“Given its operational strength, Ledn is currently evaluating a number of opportunities to broaden its leadership in digital asset lending and beyond. At the moment, we cannot share any additional details.”

For now, BlockFi has denied commenting on the matter and the circulating rumors.

BlockFi Competitor Ledn

BlockFi is a Canada-based crypto lending platform offering users the ability to earn 7.5% annual yields against lending their Bitcoin and USDC stablecoin holdings. Besides, it also allows users to swap Bitcoin for USDC.

Ledn takes a different approach from its market rivals. The crypto lender doesn’t invest in decentralized finance (DeFi) apps in order to generate yields. Some of its investors include big names like Coinbase Ventures, Valor Capital Group, and Susquehanna Private Equity Investments.

With its exposure to the insolvent Three Arrows Capital (3AC) and the overall crypto market turmoil, BlockFi has been facing a major liquidity crunch. Earlier in June 2022, FTX offered BlockFi a $250 million revolving credit line.

With too much speculations around, we can expect a BlockFi deal anytime soon.

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