FTX Seeks Court Approval to Divest Its $18 Billion Stake in Anthropic
FTX, the defunct cryptocurrency exchange, is seeking court approval to sell its 7.84% ownership in Anthropic, an artificial intelligence business valued at about $18 billion. This move is part of FTX’s efforts to recover cash and fully reimburse consumers and creditors after its collapse in November 2022. The initial investment of around $530 million was made by Sam Bankman-Fried, the former CEO of FTX, using client deposits through Alameda Research. FTX aims to reach a decision on the sale motion by February 22, 2023, during a meeting of the bankruptcy court.
A Major Opportunity for FTX to Raise Funds
The sale of FTX’s stake in Anthropic presents a significant opportunity for the company to raise the necessary funds to fulfill its financial commitments and optimize returns for stakeholders. FTX is exploring various approaches, including auctions or private discussions, to facilitate the sale. This strategic divestment aligns with FTX’s broader asset liquidation plan, which prioritizes paying client commitments and compensating affected clients.
FTX’s Ongoing Asset Liquidation Efforts
As part of its asset liquidation strategy, FTX has been actively selling cryptocurrencies worth over $700 million and disposing of its GBTC investments for more than $600 million. The company has also taken steps to sell a claim worth $175 million against the defunct cryptocurrency lender Genesis. These actions demonstrate FTX’s commitment to recovering assets and compensating customers rather than relaunching the exchange. So far, FTX has recovered over $7 billion worth of assets, which will be distributed based on cryptocurrency values from November 2022 once the asset recovery phase is completed.
Hot Take: FTX’s Divestment Strategy Signals Commitment to Repaying Stakeholders
FTX’s decision to seek court approval for divesting its stake in Anthropic is a crucial step in its post-collapse asset liquidation strategy. By selling this investment, FTX aims to repay customers and fulfill its commitments to stakeholders. The sale presents a major opportunity for FTX to raise funds and optimize returns, aligning with the company’s commitment to compensating affected clients. With ongoing efforts to liquidate assets and recover funds, FTX is prioritizing the financial well-being of its customers above relaunching the exchange.
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