FTX seeks court approval to sell 8% stake in Anthropic

FTX, the bankrupt crypto exchange, is seeking court approval to sell its 8% stake in artificial intelligence firm, Anthropic. The motion was submitted to the United States Bankruptcy Court for the District of Delaware and aims to offload Anthropic Series B Preferred Stock, including any rights or interests owned by FTX’s sister company, Alameda Research. This move comes as part of FTX’s efforts to recover funds and fully repay customers following its collapse. With a value of approximately $1.4 billion, the sale of FTX’s stake in Anthropic could provide a significant boost to these recovery efforts. The resolution regarding the sale motion is expected to be discussed in the bankruptcy court’s forthcoming meeting on February 22nd.

FTX seeks court approval to sell 8% stake in Anthropic

Article Word Count: 966

FTX, the bankrupt crypto exchange, has filed a motion with the United States Bankruptcy Court for the District of Delaware seeking approval to sell its entire 8% stake in artificial intelligence firm Anthropic. The stake is reportedly worth about $1.4 billion. This move is part of FTX’s new management efforts to recover funds and fully repay its users and creditors. FTX’s former CEO, Sam Bankman-Fried, had invested $530 in Anthropic in April 2022, before FTX’s collapse in November of the same year. The investment was made using capital from customers’ deposits on FTX.

FTX’s Motion to Sell Anthropic Series B Preferred Stock

In its motion, FTX is requesting court approval to sell its rights or interests in Anthropic Series B Preferred Stock. This stock is owned by FTX’s sister company, Alameda Research. FTX is seeking to offload its entire stake in Anthropic, indicating a complete disinvestment in the AI startup. This comes as part of FTX’s recovery plan to recover funds and reimburse its users and creditors.

Ownership of stock by sister company, Alameda Research

The Anthropic Series B Preferred Stock that FTX is seeking to sell is owned by its sister company, Alameda Research. Alameda held approximately 13.56% stake in Anthropic after its Series B funding closed in April 2022. However, the stake was diluted to 7.84% as of January due to additional securities being issued in later funding rounds. Alameda’s ownership of Anthropic shares is valued at around $1.4 billion, making it a significant asset for FTX.

Details of Sam Bankman-Fried’s Investment in Anthropic

Sam Bankman-Fried, the former CEO of FTX, made an investment of $530 in Anthropic in April 2022. This investment was made several months before FTX’s collapse in November of the same year. According to evidence presented during Bankman-Fried’s legal trial in October 2023, the capital invested in Anthropic came from customers’ deposits on FTX. This investment is now part of FTX’s stake in Anthropic, which it is seeking to sell as part of its recovery plan.

Alameda Research’s Stake in Anthropic

As mentioned earlier, Alameda Research holds a stake in Anthropic. After the Series B funding closed in April 2022, Alameda held approximately 13.56% of Anthropic. However, this stake was diluted to 7.84% as of January due to the issuance of additional securities in later funding rounds. Despite the dilution, the value of Anthropic was estimated to be $18 billion as of December, making Alameda’s stake worth around $1.4 billion.

Value of Anthropic and Alameda’s Stake

The value of Anthropic and Alameda’s stake in the company is estimated to be around $1.4 billion. This valuation is based on Anthropic’s estimated worth of $18 billion as of December. Alameda’s ownership of shares in Anthropic represents a significant asset for FTX. Selling the stake in Anthropic will help FTX recover funds to fully reimburse its users and creditors.

FTX’s New Management Efforts to Recover Funds

FTX’s motion to sell its stake in Anthropic is part of the exchange’s new management efforts to recover funds and repay its users and creditors. FTX’s legal representative, Andy Dietderich, recently stated during a court hearing that FTX has the potential to fully reimburse its users and creditors. This disinvestment in Anthropic is part of the recovery plan and is seen as a crucial step in achieving that goal. FTX has also rejected any plans to restart the exchange, indicating a focus on recovering funds rather than continuing operations.

FTX’s Motion to Sell Claim against Genesis Global Capital

In addition to the motion to sell its stake in Anthropic, FTX has also filed a similar motion to sell a $175 million claim against bankrupt digital financial services firm Genesis Global Capital. This motion, if approved, will allow FTX to further recover funds and strengthen its efforts to fully repay its users and creditors. FTX is actively pursuing different avenues to recover funds and maximize its ability to reimburse those affected by its collapse.

Timeline and Resolution

FTX is seeking to shorten the review timeline for its sale motion and is targeting a resolution in the bankruptcy court’s meeting on February 22. The flexibility to adjust the sale timeline will help FTX capture excess demand for Anthropic’s equity securities and monetize its interest in the company. FTX aims to ensure maximum efficiency in its recovery efforts and expedite the process of repaying its users and creditors.

In conclusion, FTX’s motion to sell its stake in Anthropic is a significant step in its new management efforts to recover funds and fully repay its users and creditors. The stake, estimated to be worth around $1.4 billion, represents a valuable asset for FTX. By offloading its stake in Anthropic, FTX aims to monetize its interest in the company and expedite its recovery plan. With the potential to fully reimburse its users and creditors, FTX is actively seeking court approval and pursuing different avenues to recover funds. The outcome of the bankruptcy court meeting on February 22 will provide a clearer picture of the resolution and timeline for FTX’s recovery efforts.