26 Mar, 2024

FTX to Sell $1B Anthropic Stake Amid Bankruptcy Settlement

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Sam is our pioneering figure in affiliate marketing and the blockchain space (prior to co-founding Coinweb.com). His ventures, including Netpixel Media and Captana, have set new benchmarks in the affiliate marketing industry, leading to a notable acquisition by Speqta AB for 31.5 million Norwegian kroner ($3.8 million USD). Farao's foray into blockchain technology is marked...
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Tim actively participates in the cryptocurrency and non-fungible tokens (NFTs) world. His journey began in 2017, and today, he serves as the CEO of Lunar Strategy, a marketing agency focusing on crypto and Web3. In addition to his role at Lunar Strategy, Haldorsson shares his insights by writing for various crypto publications such as Cointelegraph,...
FTX to Sell
Key Takeaways
  • Anthropic, with backing from Google and Amazon, is currently considering various sovereign wealth funds as potential buyers for FTX’s stake.
  • The FTX shares were jointly acquired in 2021 for $500 million but are worth $1 billion at today’s valuations.

Multiple Investors Line Up to Purchase FTX’s Anthropic Stake

Investors line up to acquire FTX's Anthropic stake.
Anthropic | Source: Shutterstock

In a new report from CNBC, the defunct crypto exchange FTX is selling its stake in artificial intelligence firm Anthropic.

Multiple investors, including sovereign wealth funds, are lining up to get the opportunity to buy the shares.

The sale of the Anthropic stake is part of a deal to settle FTX’s bankruptcy debt.

Notably, the sale should wrap up within a couple of weeks. FTX’s Anthropic shares will be purchased through a special purpose vehicle (SPV).

This may be due to the fact that FTX is bankrupt. SPVs are separate corporate legal entities that ensure parent companies meet legal obligations in times of insolvency.

The move marks a huge step in FTX’s efforts to settle bankruptcy debts.

Judge Ruled FTX Could Sell its Shares

FTX given the go-ahead to sell its shares  by judge.
FTX | Source: Shutterstock

The news comes after FTX lawyers had reiterated at the time of bankruptcy that the defunct exchange expects to pay back customers. Its customers will receive 100% of the value of their holdings.

A fact that CEO Sam Bankman-Fried has tried to use to his advantage to get a significantly shorter sentence. SBF is facing a maximum of 40-50 years sentence recommended by federal prosecutors.

Interestingly, FTX and Alameda jointly acquired an 8% stake in AI Anthropic for roughly $500 million in 2021.

Today, the said shares have an approximate value of $1 billion, and the class B share does not include voting rights.

Delaware Bankruptcy Court Judge John Dorsey agreed to FTX’s lawyer’s plea to sell off FTX’s assets to write off its debt in Feb 2024.

In June 2023, an attempt to sell the shares ultimately failed because the due diligence process encountered delays for months.

Saudi Arabia Locked out of Contention

Despite Saudi Arabia’s attractiveness in sovereign wealth funds, it’s locked out of contention due to alleged national security concerns.

CNBC’s report didn’t specify whether only to state investors. It needs to highlight whether individual or corporate investors in the region are similarly barred.

The report should also clearly explain the operation of citizens’ companies in foreign territories, especially because these companies have Class B non-voting shares.

Interestingly, the report doesn’t rule out investments from other sovereign wealth funds, including the United Arab Emirates’ Mubadala.

This latest development comes just ahead of FTX CEO Sam Bankman-Fried sentencing hearing scheduled on March 28, 2024.

In November, a court found SBF guilty on seven counts. 2023 against his customers and Alameda Research lenders. U.S. Attorney Damian Williams describes Bankman-Fried’s crimes as among the largest financial frauds in history.

He emphasizes that the scheme, designed to crown Bankman-Fried as the king of crypto, involved billions of dollars.

Notably, Saudi Arabia’s exclusion and SBF sentencing hearing add layers of complexity to the situation. It cements the intricate legal and financial landscape of the crypto industry.

Will Anthropic find the right investor to purchase FTX’s stake?