FTX is Bankruptcy proceedings are currently underway. After selling a significant portion of the cryptocurrency holdings, The company has formally requested court approval to sell its stake in the AI startup.
The company sought approval to sell Alameda Research’s stake in Anthropic Series B preferred stock, according to a recent court filing.
Alameda sells stake in Anthropic
FTX’s holdings in Anthropic stock were initially 13.8% due to Sam Bankman-Fried’s $500 million investment in May 2021. Nonetheless, Anthropic issued new securities, reducing its stake in Alameda Research to 7.84%.
“The Debtor (FTX) submits that establishing a sales process pursuant to the proposed sale process and conducting and consummating the Human Stock Sale will maximize the value of the Debtor’s assets for the benefit of all stakeholders,” FTX attorneys wrote.
FTX’s current valuation of Anthropic’s assets has ballooned from its original investment of $500 million to approximately $1.4 billion. This reflects impressive valuation growth for AI startups. It is worth noting that Anthropic is currently one of OpenAI’s main rivals.
This isn’t the first time FTX has floated the idea of selling Anthropic stock. The company halted plans to sell its stake in June 2023 for undisclosed reasons. However, the current move appears to be consistent with a broader asset liquidation strategy to meet client obligations.
Read more: Who is the infamous FTX co-founder Sam Bankman-Fried (SBF)?
FTX is prepared to work with Anthropic to facilitate the sale and is also exploring a variety of sales methods, including auction or private negotiations. Additionally, FTX is seeking a streamlined hearing period with a February 15 deadline for objections, with the goal of resolution at a February 22 hearing.
FTX Bankruptcy Process Updates
This development follows FTX’s recent sale of various assets, including more than $700 million worth of cryptocurrencies over the past three months. The defunct company also sold about 75% of its GBTC investments for about $600 million and sold a $175 million claim against bankrupt cryptocurrency lender Genesis.
FTX’s legal representative, Andy Dietderich, said the company had abandoned all plans to revive the exchange. Given the underlying issues preventing it from securing adequate funding from potential bidders, the primary focus is now on full customer refunds.
Despite the challenges, FTX has made significant progress in asset recovery and has amassed more than $7 billion in assets to date. Distribution of these recovery funds, scheduled for November 2022 at the cryptocurrency price, will take place after the asset recovery phase is completed.
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