FTX Sells Remaining Anthropic Shares for $450 Million

The FTX bankruptcy estate is actively selling assets to repay former customers of the failed exchange. The latest move involves selling its remaining shares in the AI startup Anthropic.

Bankruptcy filings show that FTX sold its remaining shares in Anthropic, known for the Claude chatbot, earning over $452 million by selling 15 million shares at $30 per share. The main buyer, G Squared, a venture capital firm, acquired about one-third of the shares for $135 million. Other buyers included Fund FG-BLU and several hedge funds and investment firms.

This sale follows another transaction two months ago, where FTX sold most of its Anthropic shares at the same price, gaining about $900 million. Combined, the total proceeds from selling Anthropic shares are $1.3 billion. Initially, FTX and its sister company, Alameda, invested $500 million for an 8% stake in Anthropic in 2021. The AI industry’s surge significantly increased the value of these shares, resulting in over $800 million in profits for FTX.

Besides Anthropic shares, FTX has been selling other assets. Recently, liquidators announced plans to sell real estate properties acquired by FTX before its bankruptcy.

A report by a bankruptcy expert revealed that FTX’s bankruptcy proceedings have cost over $700 million. This includes legal and administrative fees accumulated over the years since the exchange’s collapse. Alvarez & Marsal, a consulting firm, is the highest earner, charging $212 million for its services. FTX’s legal counsel, Sullivan and Cromwell, has billed $202 million.

Notably, FTX CEO John Ray has charged the estate $5.6 million since the bankruptcy case began, at an hourly rate of $1,300. The sale of Anthropic shares is part of the FTX estate’s broader strategy to liquidate assets and reimburse former customers. These proceeds are essential for covering the high costs of the bankruptcy process and ensuring creditors are compensated.

Since FTX’s collapse, the estate has been systematically selling off assets, including shares in tech companies, real estate, and other investments made by FTX before bankruptcy. Liquidators aim to maximize the value recovered from these sales to address the financial shortfall.

The ongoing liquidation process underscores the complexities faced by the FTX bankruptcy estate. While selling Anthropic shares has provided a significant financial boost, the estate still encounters challenges in fully reimbursing creditors and managing the high costs of the proceedings.

The involvement of multiple stakeholders, including investment funds and legal entities, adds to the complexity. Each action by the liquidators is closely monitored to ensure optimal outcomes for all parties involved.

As the bankruptcy proceedings continue, the FTX estate must navigate these challenges carefully. The successful sale of high-value assets like Anthropic shares shows potential for significant recoveries. However, managing the high costs of the bankruptcy process and strategic asset liquidation remain crucial.

In conclusion, the FTX estate’s sale of its remaining Anthropic shares for $450 million marks a significant milestone in its efforts to reimburse former customers. With total proceeds from Anthropic shares reaching $1.3 billion, the estate has made substantial progress. Nevertheless, the high costs of the bankruptcy process and effective asset management continue to be significant challenges as the estate strives to meet its financial obligations.