- FTX is selling two-thirds of its stake in Anthropic for $884M to raise funds for clients affected by its collapse
- Major buyers include quant trading firm Jane Street, where FTX founder previously worked, and Fidelity funds, an early backer of FTX
- After the sales, FTX will retain around one-third of its original stake in Anthropic
The recent bankruptcy of cryptocurrency exchange FTX has sent shockwaves through the crypto industry. Once valued at $32 billion, FTX filed for Chapter 11 bankruptcy protection on November 11, 2022 after failing to secure a bailout. The swift downfall of this major player has raised concerns about the stability of other crypto firms.
FTX Sells Majority Stake in AI Company Anthropic
As part of its bankruptcy proceedings, FTX is selling off assets to raise funds for clients affected by its collapse. According to court documents, FTX is selling two-thirds of its stake in AI research company Anthropic for $884 million.
The estate plans to sell 295 million shares to 24 buyers. Major purchasers include Abu Dhabi-based ATIC, which is buying 166 million shares for $500 million, and quant trading firm Jane Street, which is paying $100 million for 33 million shares. Funds managed by Fidelity are also participating, spending $50 million on 15 million shares.
Three years ago, FTX paid $500 million for its 8% stake in Anthropic. That stake is now valued at over $1 billion. After the sales, FTX will retain around one-third of its original stake in the company.
FTX’s Ties to Major Investors
The list of buyers for FTX’s Anthropic shares includes some major names that were previously connected to FTX and its founder Sam Bankman-Fried.
After graduating from MIT, Bankman-Fried worked as a trader at Jane Street for three years before founding FTX. Jane Street is now buying up shares in Anthropic as FTX sells off assets.
In addition, Fidelity was an early backer of FTX, participating in a $400 million funding round in October 2021. Now its funds are purchasing shares as part of FTX’s bankruptcy proceedings.
The sales of Anthropic stock require court approval. Proceeds will provide funds to reimburse FTX customers affected by its shocking collapse.
