Morgan Creek Digital plans to raise $250 million from investors in order to purchase a majority stake in blockchain platform BlockFi, CoinDesk has reported citing the head of the venture capital company Mark Yusko.
According to the top manager, the Morgan Creek initiative is a response to the BlockFi agreement with the FTX exchange.
BlockFi CEO Zach Prince revealed on Tuesday that his company had signed a preliminary $250 million revolving line of credit with FTX.
Later, it was reported that the crypto exchange plans to acquire a stake in BlockFi.
Yusko has stressed 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.