Bankrupt crypto exchange FTX seeks court approval to offload its $1.4 billion stake in AI firm Anthropic, raising funds for creditors while navigating the complexities of its financial restructuring.
In a move to raise liquidity and potentially appease creditors, bankrupt crypto exchange FTX has filed a motion with the U.S. Bankruptcy Court seeking permission to sell its 7.84% stake in artificial intelligence (AI) firm Anthropic, valued at roughly $1.4 billion. This divestment marks a strategic shift for FTX and highlights the ongoing financial complexities surrounding its collapse.
A Valuable Asset on the Auction Block
Anthropic, a research company focused on advanced AI and safety, has garnered significant interest, with its recent funding round valuing it at a staggering $18 billion. Consequently, FTX’s stake represents a highly valuable asset that could attract lucrative bids. The motion outlines two potential sale methods: an auction or a private sale depending on court approval and market conditions.
The company, currently led by CEO John Ray III, in the motion, asked a judge approve the sale of FTX’s stake in Anthropic. In another motion, it requested the shortening of the deliberation period for the sale motion so that it can be heard at the next bankruptcy court hearing on February 22. The deadline for opposition to the motion is February 15.
Raising Funds for Creditors
The proceeds from the sale, estimated to reach $1.4 billion, would contribute towards repaying FTX’s outstanding debts to creditors, potentially benefiting users and investors affected by the exchange’s downfall. This move reflects the ongoing efforts by FTX’s current leadership to recover assets and maximize value for stakeholders.
Uncertainties and Next Steps
While the potential sale offers a ray of hope for creditors, uncertainties remain. The court must first approve the motion, and the final sale price could differ from the estimated $1.4 billion depending on market interest and competition. Additionally, questions regarding the potential impact on Anthropic and its future development linger.
This development comes amidst continued scrutiny surrounding FTX’s bankruptcy proceedings. The sale of its Anthropic stake, if approved, will represent a significant step towards resolving its financial obligations and navigating the complex legal and financial landscape it currently faces.