The bankruptcy proceedings of FTX took a significant leap forward this Thursday, following a decisive nod from the court. The green light was given for FTX to proceed with the sale of its stakes in Anthropic, an entity at the forefront of AI innovation.
FTX is set to part ways with an 8% holding in Anthropic. This is no small deal; based on last year’s valuations, the stakes are high, potentially exceeding $1.4 billion in worth for the beleaguered exchange. Yet, the waters are muddied slightly by a discrepancy in valuation figures, with a notable publication revising the startup’s worth down from the initially reported $18 billion to $15 billion. The fallout from this valuation adjustment leaves the exact financial gain from the sale somewhat in the air. Nonetheless, it’s clear that the transaction is expected to inject a substantial sum into FTX’s coffers, comfortably in the billion-dollar region.
The investment in Anthropic, made by FTX’s former CEO Sam Bankman-Fried to the tune of approximately $500 million back in 2021, now stands as a testament to the exchange’s foresight. Despite the downturn, this investment emerges as a beacon of profitability amidst the financial turmoil.
The initiative to divest the Anthropic stake was formally set in motion earlier this month, with FTX outlining its strategy to the court. The plan was to sell “all or portions of Anthropic Shares at different times, and by different means,” a flexible approach aimed at maximizing returns. This decision to sell at “optimal” times was especially highlighted as being contingent on the AI company’s capital-raising activities.
During a hearing earlier this year, optimism was voiced by the legal representatives of FTX’s estate, promising that creditors would eventually see their dues settled. However, this optimism was tempered by the acknowledgment of a failed attempt to rejuvenate the exchange. Despite efforts, no investors were forthcoming with the capital necessary for a restart, nor was a buyer found for the exchange, although the mention of “valuable customer data” still in the estate’s possession hinted at potential assets yet to be leveraged.
Interestingly, this aspect of asset recovery, including the sale of Anthropic shares, was not originally part of the bankruptcy plan laid out in Chapter 11. This development underscores the dynamic nature of the bankruptcy process, adapting to the unfolding financial landscape and opportunities for recouping losses.
In a related development, FTX has been authorized to sell its shares in Grayscale’s bitcoin ETF. This particular move has already seen the estate converting approximately $1 billion of GBTC into liquid assets. It represents another facet of FTX’s strategy to navigate its bankruptcy, showcasing the multifaceted approach being employed to address its financial obligations.
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