In a recent development, a U.S. bankruptcy judge has given the green light to cryptocurrency exchange FTX to sell its stake in AI startup Anthropic. This move is expected to bring the beleaguered exchange’s creditors a step closer to recouping their losses.
Judge John Dorsey of the Bankruptcy Court for the District of Delaware gave his approval for the sale after hearing arguments from creditors about the sale process. Earlier this month, FTX had sought permission to sell its nearly 8% stake in Anthropic, a company in which its former CEO, Sam Bankman-Fried, had invested $500 million in 2021.
David Adler, representing some of FTX’s creditors, initially opposed the move over concerns about preserving their rights. However, this issue was resolved by modifying the order to include language about creditors’ rights.
Andrew Dietderich, a lawyer representing FTX, stated during the hearing, “We’re selling the Anthropic shares as we are selling everything and putting the money in the bank.” He further added that there would be no difference in the entitlement of Mr. Adler’s clients to the proceeds from the sale of Anthropic and any other property of interest in the estate.
The Potential of Anthropic
Anthropic, valued at a staggering $18 billion in December 2023, could potentially give FTX’s stake a value of around $1.4 billion. The value of the Anthropic shares has emerged as a significant beacon of hope for those affected by the FTX collapse. FTX is optimistic that the company has sufficient funds to settle all customer and creditor claims in full.
FTX had previously expressed its intention to collaborate with Anthropic for the sale of the shares, arguing that a sale was a “good and sound business” decision. The company also noted that the value of the shares had fluctuated significantly and had filed to expedite the approval process for the sale of the Anthropic stake.
FTX stated in its filing earlier this month, “The market for equities of early-stage technology companies, especially those focused on artificial intelligence, can be volatile, and the value of the Anthropic Shares has changed significantly since the Petition Date.” The company also acknowledged that it might face tight time constraints to capitalize when the value of and demand for the Anthropic Shares is high.
