Over twenty parties are interested in purchasing the majority of FTX’s shares in artificial intelligence startup Anthropic, including Jane Street Global and an Abu Dhabi investment firm.
The transaction may furnish the insolvent cryptocurrency exchange with sufficient funds to reimburse creditors impacted by FTX’s demise.
Over 29 million shares of FTX will be sold from its philanthropic stake.
Court documents indicate that on March 22, FTX planned to sell an estimated quantity of 29.5 million shares in Anthropic to 24 buyers for a total of $884,109,327.
ATIC Third Investment Company LLC is at the top of the list of purchasers, offering 16,664,167 shares for approximately $500 million. ATIC is a wholly-owned subsidiary of Mubadala, an Abu Dhabi sovereign wealth fund owned by the government.
Nearly $100 million will be paid to acquire 3.3 million shares from Jane Street Global, a global quantitative trading firm where convicted FTX founder and former CEO Sam Bankman-Fried formerly worked as a trader.
Craig Falls, the Ford Foundation, and specific funds managed by Fidelity Management and Research, among others, will each contribute $45 million to acquire approximately 1.5 million shares.
Any objections to the proposed sale, which is pending bankruptcy court sanction, must be submitted by April 1, 2024.
Additional Funds to Pay Off FTX Creditors
FTX invested $500 million in Anthropic in 2021, granting the defunct cryptocurrency exchange a 7.8% ownership interest in the AI startup.
In 2023, the value of FTX’s investment increased to approximately $1.4 billion, more than doubling, due to the soaring value of Anthropic and heightened interest in the artificial intelligence industry. FTX received court approval in February 2024 to resume selling its stake in Anthropic, a transaction that had been halted since June 2023.
FTX possesses $16.4 billion in reserves, which is in addition to the anticipated revenue generated from the proposed sale of the Anthropic shares. The funds might enable the in-full repayment of the unsecured cryptocurrency company’s creditors.
Unlike its lucrative Anthropic investment, the proposed divestiture of Digital Custody, one of FTX’s subsidiaries, will incur a substantial loss.
For a sum of $10 million, the cryptocurrency exchange acquired Digital Custody. Nevertheless, subsequent to the exchange’s downfall in November 2022, the subsidiary was acquired by CoinList for $500,000. CoinList’s CEO, Terrence Culver, had originally facilitated the sale to FTX.
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