FTX Seeks Exit from Anthropic Holdings, Proposes Entire 8% Stake Sale

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By BitcoinWiki News

Key Takeaways:

– FTX seeking approval to sell its 8% stake in AI startup Anthropic Holdings
– Motion filed by FTX’s CEO, John Ray III
– Proposal of two possible procedures for sale: auction or private sale
– Request for shortened period for objections with court hearing scheduled for February 22
– Exact price sought for Anthropic shares redacted from filing
– Anthropic Holdings valued up to $18 billion in December 2023
– FTX aims to fully repay customer and creditor claims with funds from stake sale
– FTX filed motion to sell $175 million claim against bankrupt Genesis Global Capital
– Flexibility to sell claim in entirety or parts in most favorable market conditions
– Claims against Genesis currently selling for 65% of face value
– Sale procedure to streamline process and reduce costs
– Initial claim against Genesis reduced to $175 million in August 2023 from $3.9 billion
– Genesis filed for bankruptcy in January 2023, triggering dispute with Gemini cryptocurrency exchange
– Genesis recently reached $21 million settlement with SEC regarding Gemini Earn program

FTX Seeks Approval to Sell Stake in AI Startup Anthropic Holdings

The bankrupt cryptocurrency exchange FTX has filed a motion seeking approval to sell its 8% stake in AI startup Anthropic Holdings. The motion, filed by FTX’s current CEO, John Ray III, proposes two possible procedures for the sale – an auction or a private sale. FTX aims to expedite the deliberation process by requesting a shortened period for objections to be raised, with a court hearing scheduled for February 22.

The precise price sought for the Anthropic shares has been redacted from the filing, as FTX’s legal team believes public disclosure could hinder the potential to obtain higher offers for the stake. Anthropic Holdings achieved a reported valuation of up to $18 billion in December 2023, indicating that FTX’s 7.84% stake could be worth approximately $1.4 billion.

Victims of the FTX collapse are hopeful for full repayment, as it is anticipated that the sale of the stake in Anthropic Holdings will generate sufficient funds to fully repay all customer and creditor claims. By divesting this illiquid asset, FTX aims to maximize returns for its stakeholders and fulfill its commitments to customers and creditors.

FTX Files Motion to Sell its Claim Against Genesis Global Capital

FTX also filed a motion earlier this month to sell its $175 million claim against bankrupt digital financial services firm Genesis Global Capital. The claim was initially made by Alameda Research, FTX’s associated hedge fund. If approved, FTX will have the flexibility to sell the claim in its entirety or in parts, taking advantage of the most favorable market conditions.

Currently, claims against Genesis are selling for 65% of their face value, significantly higher than the 38% that Alameda Research claims are fetching. The motion seeks approval for a sales procedure that would apply to all sales, streamlining the process and reducing costs.

The sale price must be at least 95% of the highest price quoted by leading market-makers for general unsecured claims of Genesis Global Capital within three days of the sale date. FTX initially sought to recover $3.9 billion from Genesis in May 2023 but later negotiated the reduced claim of $175 million in August 2023, which was approved by the court in October.

Genesis Had $175M in FTX Accounts

FTX faced its own troubles when irregularities were discovered in its accounting books, leading to its collapse in November 2022. At that time, Genesis had $175 million tied up in FTX accounts, although it claimed this did not affect its market-making activities.

In a separate development, Genesis recently reached a $21 million settlement with the United States Securities and Exchange Commission regarding the Gemini Earn program. This settlement will be considered during a court hearing in New York on February 14, where Genesis debtors’ proposed bankruptcy reorganization plan will also be reviewed.

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