FTX, the cryptocurrency exchange that filed for bankruptcy, is in the process of selling its 8% stake in the artificial intelligence startup Anthropic. This stake, initially purchased for $500 million in 2021, is now valued at approximately $1 billion. The sale has attracted interest from global investors, including sovereign wealth funds, with the transaction expected to conclude within the next few weeks.
Proceeds Aimed at Repaying FTX Investors
The proceeds from this sale will be directed towards repaying FTX investors, aligning with the company’s goal to fully reimburse customers affected by its bankruptcy. This move comes after FTX’s lawyers announced in January the exchange’s capability to repay customers 100% of their holdings’ value at the time of the bankruptcy. This information has been leveraged by FTX’s disgraced founder, Sam Bankman-Fried, in his legal defense, as he faces a potentially lengthy prison sentence.
Sale Details and Restrictions
The 8% class B shares in Anthropic, an AI firm considered a competitor to OpenAI, do not confer voting rights to the holder. FTX’s decision to sell these shares was authorized by a New York bankruptcy court in February, following an unsuccessful attempt to sell them in June 2023 due to stalled due diligence processes.
Anthropic has expressed a specific restriction regarding potential buyers, stating it will not entertain investments from Saudi Arabia owing to national security concerns. However, investments from other sovereign wealth funds, such as the United Arab Emirates’ Mubadala, remain under consideration.
This sale represents a significant step in FTX’s efforts to resolve its bankruptcy proceedings and fulfill its commitments to its creditors and investors. It also highlights the ongoing interest and investment in AI technology from a broad spectrum of global investors.
