FTX plans to sell stake in Mysten Labs for $96M
FTX has submitted a motion through which it intends to sell its stake in Mysten Labs, according to a bankruptcy court filing on March 22.
The value of the sale is estimated to be more than $96 million. About $95 million of that amount consists of shares, though it also includes $1 million of SUI token warrants — that is, a promise to receive Mysten Labs’ future crypto token when it is released.
FTX acquired those assets by leading a Series B fundraising round for Mysten Labs in August 2022 and in other transactions around that time. The fundraiser brought in $300 million from FTX and other companies and raised Mysten Labs’ valuation to $2 billion.
Proceeds from the sale are intended to help return value to customers in the aftermath of FTX’s collapse.
Mysten Labs builds the Sui Blockchain, which aims to act as a competitor to Ethereum while providing greater scalability and transaction throughput. The project has gained initial support from Chinese tech and commerce giant Tencent.
The Sui Blockchain is still in its early stage and its SUI token is not in circulation.