Crypto exchange platform FTX US has reportedly entered an agreement with BlockFi offering the crypto derivatives exchange the choice to acquire the lending firm.

Specifically, Head of BlockFi, Zac Prince, reportedly tookt to Twitter to revealed that the crypto lending company had put it signature on agreements with FTX US for a $400-million revolving credit facility, together with the choice to purchase BlockFi “at a variable price of up to $240 million based on performance triggers.”

Per the CEO, the deal was reached as included in the scope of an attempt “to bolster liquidity and protect client funds” at BlockFi.

The agreements are still waiting for shareholder authorization. Prince shared that volatility in the crypto market, especially market events connected to Celsius and 3AC which had a negative effect on BlockFi, was the driving force of the decision. 

The crypto lending platform reportedly experienced an approximate loss of $80 million the week after Celsius putting temporary halting on drawals, and, after taking into account “​​various unattractive options” for recovery, teamed up with FTX US.

“All of our products and services — including funding and withdrawals, our trading platform, credit card and global institutional services — continue to operate normally, with incremental capital strength behind them,” Prince further revealed.

BlockFi reportedly expressed criticisms towards reports from June 30th claiming FTX had intentions of acquiring the company for $25 million. Per the CEO, the $400 million credit facility, $240 million acquisition price and “other potential consideration” brought the total amount to $680 million – for a company that had a $5 billion valuation in June last year. 

Prince hinted the report was due to “an inappropriately leaked call” and “purely personal conjecture by a single party.”