April 19, 2024
Fresh Start for The Block: Foresight Ventures Injects $60 Million in Major Ownership Deal
Latest Cryptocurrency News

Fresh Start for The Block: Foresight Ventures Injects $60 Million in Major Ownership Deal

The Block, a prominent crypto-focused media company, has undergone a significant transition with the sale of a majority stake to Foresight Ventures, a venture capital firm based in Singapore. Axios has valued The Block at $70 million, and Foresight Ventures is acquiring an 80% stake in the media company for $60 million. Despite the change in ownership, The Block is set to continue its operations as an independent business.

Larry Cermak, the CEO of The Block, remains the second-largest shareholder in the company. Foresight CEO Forest Bai will assume the role of chairman, and partner Tony Cheng will join the board. Cermak expressed on X (formerly Twitter) that this marks a “fresh start” for the company.

Foresight Ventures has outlined its strategic focus on aiding companies in attracting more users from the Asian market, citing increased regulatory clarity and capital inflow in the region. The deal allows The Block to distance itself from the FTX scandal, where former CEO Mike McCaffrey, the majority shareholder, was found to have taken substantial loans from Sam Bankman-Fried, the founder and former CEO of FTX.

As part of the agreement, Foresight Ventures has committed to spending an undisclosed amount on ads with The Block during the first year. The majority of the capital will reportedly be used to acquire the stake previously held by McCaffrey, with the remainder allocated to a change of control clause.

Foresight Ventures has existing stakes in several Asian crypto media organizations, including Block Temp and Foresight News for Mandarin-speaking audiences, as well as CoinNess, published in Korean. The venture capital firm believes it can assist The Block in navigating the challenging bear market that has led many crypto companies to implement significant staff layoffs. In March, The Block reportedly laid off nearly 33% of its staff.

This strategic move positions The Block for a new chapter of growth and development in the ever-evolving crypto media landscape.

Image: Wallpapers.com

Related posts

Terra Temporarily Shuts Down Website Amidst Phishing Scam Surge

Eva Moore

Arweave Faces Turmoil as Irys Network Plans Fork Amid Allegations

Bran Lopez

Bitstamp UK Joins FCA’s List of Registered Crypto Firms

Anna Garcia

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More