FTX's Sale of Anthropic Stake Raises Concerns Amid Bankruptcy

Is FTX's Sale of Anthropic Stake a Sign of Trouble?

In a move that has raised eyebrows, bankrupt crypto exchange FTX is set to sell two-thirds of its stake in artificial intelligence (AI) startup Anthropic for $884 million. This comes as FTX seeks to pay off its creditors and bolster its cash reserves.

Who's Buying?

The sale involves a diverse group of buyers, including ATIC Third International Investment Company LLC, linked to the United Arab Emirates (UAE) sovereign wealth fund Mubadala, as well as Jane Street, Fidelity Management and Research, and venture capital firm HOF Capital.

FTX's Initial Investment and Anthropic's Trajectory

In 2021, a year before its bankruptcy amidst allegations of fraud, FTX invested $500 million in Anthropic. Anthropic, renowned for its AI research, has since attracted significant investments from tech titans Amazon and Alphabet Inc.'s Google in 2023, boosting its valuation to an estimated $6 billion.

FTX's Asset and Creditor Repayment Goals

The FTX bankruptcy estate currently holds an 8% stake in Anthropic, making it one of the estate's most valuable assets. As of last month, the estate's cash reserves were valued at approximately $6.4 billion.

FTX officials remain confident in their ability to repay all of the company's creditors, and the sale of the Anthropic stake is expected to make a significant contribution to that effort.

Bankruptcy Judge's Approval and Creditor Concerns

As reported earlier by Bitcoinist, US bankruptcy Judge John Dorsey approved the decision to sell the Anthropic shares in February. Initially, FTX creditors expressed reservations about the sale, alleging that FTX had acquired the shares with customer funds.

However, FTX's pledge to use the sale proceeds to repay creditors persuaded them to approve the proposal, with the condition that the proceeds be used specifically for creditor repayment.

Anthropic's Ownership Shakeup

The sale of the majority stake in Anthropic will provide FTX with a much-needed cash infusion to meet its financial obligations. For Anthropic, the sale marks a change in ownership but does not diminish its position as a key AI player, bolstered by its previous investments from Amazon and Alphabet Inc.'s Google.

Who Will Emerge as the New Majority Owner?

Following the sale of the majority of the exchange's shares in the startup, the question remains who will hold the majority ownership in Anthropic.

FTX's Reorganization Strategy

FTX's decision to sell its majority stake in Anthropic for $884 million is a pivotal step in its bankruptcy reorganization process. By selling its stake, FTX aims to fully repay its creditors and strengthen its financial position. The sale also underscores the growing interest in AI-related startups, which has significantly boosted the exchange's initial $500 million investment.

FTT's Positive Market Performance

Despite the ongoing bankruptcy saga, the native token of the exchange, FTT, has shown resilience. As of now, FTT is trading at $2.22, marking a 9% rebound in the last 24 hours. This follows its notable year-to-date surge of 74%.