FTX Estate Plans to Sell Majority Stake in Anthropic for $884M

March 27, 2024 | by


FTX Estate, the bankrupt crypto exchange, has revealed its plans to sell a majority stake in the artificial intelligence startup, Anthropic, for a staggering $884 million. This move comes as part of FTX’s efforts to reimburse clients affected by its downfall in late 2022. The sale will see about two-thirds of FTX’s 8% stake in Anthropic being sold to various buyers, including ATIC Third International Investment Company, Jane Street, Fidelity Management and Research, venture capital firm HOF Capital, and several other investors. With the new CEO, John Ray III, leading the way, FTX has been actively recovering funds and assets, with over $7 billion retrieved to date.

FTX Estate Selling Stake in Anthropic

The estate of the bankrupt crypto exchange FTX has recently announced its plans to sell a majority stake in the artificial intelligence startup Anthropic for a total of $884 million. This move comes as part of the estate’s efforts to reimburse clients who were affected by FTX’s downfall. The sale is expected to involve several investors, including ATIC Third International Investment Company LLC, which is linked to the United Arab Emirates’ sovereign wealth fund Mubadala, as well as Jane Street, Fidelity Management and Research, HOF Capital, and others.

Details of the Sale

According to a report by the Wall Street Journal, ATIC Third International Investment Company is set to purchase approximately $500 million of FTX’s shares in Anthropic. The transaction also includes the participation of other buyers, such as Jane Street, Fidelity Management and Research, HOF Capital, and 20 other investors, based on an agreement dated March 22. This sale represents about two-thirds of FTX’s 8% stake in Anthropic, totaling $884 million.


Importance of Anthropic to FTX Estate

Anthropic is considered one of FTX estate’s most valuable assets. Despite the bankruptcy of FTX, officials from the estate have expressed confidence that FTX creditors will be fully compensated, thanks in part to the sale of the majority stake in Anthropic. This sale highlights the significance of Anthropic to the overall recovery efforts of FTX estate and its commitment to reimbursing affected clients.

Objective of Selling Stake in Anthropic

The primary objective of selling the stake in Anthropic is to reimburse clients who were negatively affected by FTX’s downfall. By generating funds through the sale, FTX estate aims to compensate its clients and provide them with the restitution they deserve. Additionally, this sale also serves as a means for FTX estate to recover funds and assets to rebuild its financial standing.


Significance of Anthropic’s Funding and Competitors

Anthropic has managed to secure a significant amount of funding, amounting to $7 billion, from major technology firms such as Amazon and Alphabet. This demonstrates the high value and potential of Anthropic within the AI industry. Furthermore, Anthropic’s competitor, OpenAI, has experienced rapid growth, with its market value tripling to $80 billion in less than a year. These developments highlight the importance of Anthropic as an asset to FTX estate and its potential for future success.

Leadership Changes at FTX and Recovery Efforts

Under the leadership of the new CEO, John Ray III, FTX has been actively engaged in recovery efforts. The team has successfully retrieved over $7 billion to date through various means, including the sale of assets, recovery of high-end real estate, and the retrieval of cryptocurrency. Additionally, efforts are being made to identify and recover assets that were previously unaccounted for. These recovery efforts signify FTX’s commitment to assisting affected clients and rebuilding the estate’s financial standing.


Retrieved Funds and Assets

Thus far, the FTX estate has managed to retrieve $7 billion in funds. In addition to funds, the estate has also recovered high-end real estate and cryptocurrency. Furthermore, it has been discovered that expensive gifts and real estate, worth $26 million, were given to the parents of Bankman-Fried, the founder of FTX. Additionally, $700 million was transferred to K5 Global and its founder, Michael Kives. The funds transferred to K5 Global were invested in various companies, including SpaceX, some of which have significantly increased in value.

Investments Made by K5 Global

K5 Global, a recipient of a significant portion of FTX’s funds, has made investments in several companies, including SpaceX. These investments have proven to be lucrative, with some of them experiencing an increase in value. This highlights the potential for FTX estate’s investments to yield positive returns and further contribute to the recovery efforts.


Future Prospects for FTX Estate

With the sale of the majority stake in Anthropic and the ongoing recovery efforts, there is a potential for full reimbursement of affected clients. The funds generated from the sale, combined with the retrieved assets and investments, can help rebuild the financial standing of FTX estate. This will enable the estate to overcome the challenges it faced due to FTX’s downfall and pave the way for a more stable and prosperous future.

Overall Impact on Crypto Exchange Industry

The bankruptcy of FTX and its subsequent recovery process have significant implications for the crypto exchange industry as a whole. It serves as a reminder of the risks associated with investments in the industry and emphasizes the importance of due diligence and risk management. Investors and industry players can learn valuable lessons from FTX’s downfall and subsequent recovery efforts, helping them make more informed decisions and mitigate potential risks in the future.



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