FTX Seeks to Sell Stake in AI Startup Amid Bankruptcy
The embattled cryptocurrency exchange, FTX, has filed a motion to expedite the sale of its 7.84% stake in artificial intelligence startup, Anthropic, as part of its bankruptcy liquidation strategy. This move comes as FTX continues its efforts to recover from financial distress and fulfill obligations to its customers and creditors.
A Race Against Time
FTX’s stake in Anthropic, valued at approximately $1.4 billion, represents a significant part of the exchange’s asset base. The request for expedited court proceedings has set an objection deadline of February 15, with the exchange aiming for a resolution by February 22. The urgency underscores the criticality of this sale in FTX’s plan to reimburse its customers and creditors.
Anthropic’s Growing Value
Anthropic, a rapidly growing AI company, saw a $500 million investment from FTX’s founder Sam Bankman-Fried in May 2021. Since then, despite the dilution of FTX’s stake from an initial 13.8% to current 7.84%, the value of these shares has appreciably increased, reflecting the significant growth and potential of Anthropic in the AI industry.
FTX’s Liquidation Strategy
FTX’s proposed sale of its Anthropic stake aligns with its broader strategy to liquidate assets to fulfill client obligations. Amid bankruptcy proceedings, the exchange has already made substantial asset sales, including over $700 million in cryptocurrencies, 75% of its GBTC investments for around $600 million, and a $175 million claim against the bankrupt crypto lender Genesis. Despite the challenges, FTX has accumulated over $7 billion in recovered assets, with distribution based on November 2022 crypto prices set to commence once the asset recovery phase concludes.
This news is republished from another source. You can check the original article here