FTX Initiates Sale of $1.4 Billion Worth Shares in Anthropic Amidst Bankruptcy
FTX plans to sell its $1.4 billion worth shares of AI research company Anthropic, to recover funds and ensure repayment to its customers.
Bankrupt cryptocurrency exchange FTX submitted a court filing to the United States Bankruptcy Court for the District of Delaware to seek approval to sell its $1.4 billion stake in the AI research company Anthropic. This stake comprises Series B preferred stock and associated rights or interests held by its sister company–cryptocurrency trading firm Alameda Research.
The decision to disinvest in Anthropic aligns with FTX’s recent management strategies to recover funds and ensure complete repayment to its customers. FTX is additionally pursuing a reduction in the review timeline for its sale motion to expedite the process, aiming for a resolution during the bankruptcy court’s upcoming meeting scheduled for February 22.
“The flexibility to adjust the sale timeline will help facilitate such cooperation, allowing the Debtors to capture excess demand for Anthropic’s equity securities channeled from any of Anthropic’s financing rounds. Further, given the significant number and value of Anthropic Shares held by the Debtors, the flexibility to sell portions of Anthropic Shares at different times will help the Debtors monetize their interest,” said the court filing.
Former FTX CEO Sam Bankman-Fried invested approximately $530 in Anthropic seven months before the collapse of the exchange in 2022. During Sam Bankman-Fried’s legal trial, it was revealed that the capital used for this investment in the AI startup originated from customer deposits on FTX.
Alameda Research maintained a stake of approximately 13.56% in Anthropic following the closure of its Series B funding. Subsequent funding rounds by Anthropic involved the issuance of additional securities, resulting in a dilution of Alameda Research’s participation to 7.84%. As of December 2023, Anthropic held a valuation of $18 billion, attributing a value of approximately $1.4 billion to Alameda Research’s stake in the company.
FTX Plans Full Debt Repayments
The legal representative of the bankrupt cryptocurrency exchange announced that there is cautious optimism regarding the full repayment of users and creditors. It was emphasized that this outlook is an objective rather than a guarantee. Additionally, the firm announced its decision to abandon any plans to resurrect the exchange.
Recently, FTX submitted another court filing aimed at gathering the necessary funds to facilitate debt repayment and commence restructuring of financial obligations to creditors. It intends to sell its $175 million general unsecured claim against the defunct cryptocurrency lender Genesis.
The strategic move comes after FTX’s complete divestment from the Grayscale Bitcoin Trust ETF and the withdrawal of a lawsuit alleging that over $9 billion in investor funds became trapped in GBTC following the collapse of FTX. It is also intended to recover and optimize returns for customers who suffered losses.
Currently, the cryptocurrency exchange grapples with over 35,000 customer claims, amounting to $16 billion in lost funds. Additionally, the exchange carries debts amounting to approximately $3.1 billion, owed to its 50 corporate creditors.
In navigating a complex financial landscape, FTX strives to address customer claims and repay debts, demonstrating a determined effort to recover funds and overcome economic challenges.
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