FTX will acquire cryptocurrency lender BlockFi for pennies on the dollar, multiple news outlets said Friday.

The term sheet is expected to be signed by the end of the week, based on three unnamed sources who requested anonymity due to the private nature of the negotiations.

Sources said, FTX is set to pay approximately $25 million, which is 99 percent less than BlockFi's previous private value. 

Another individual with intimate knowledge of the transaction estimated the price to be closer to $50 million.

BlockFi, headquartered in New Jersey, was last valued at $4.8 billion, according to PitchBook.

The price could change between now and Friday, according to the source. The closing of a purchase may likewise need numerous months.

The source noted that the transaction could result in options to purchase BlockFi in the future, pending regulatory approval.

Friday is also the conclusion of the quarter, which, one source said, was a factor in the signing of a contract.

The Wall Street Journal initially reported that FTX was seeking a share in the company, while The Block claimed this week that an outright acquisition was in the works.

A spokesman for FTX stated that the business "would not comment on the topic." In a tweet, BlockFi CEO Zac Prince refuted the $25 million number, calling it "market speculation." 

A spokesman for BlockFi stated that the company "does not comment on market rumors."

The sale occurs one week after FTX extended BlockFi a $250 million emergency line of credit. Sam Bankman-Fried, CEO of FTX, stated at the time that the investment will enable BlockFi to "navigate the market with confidence."

It's the latest blow to crypto lending companies in the wake of falling crypto asset values. The inability of counterparties to meet margin calls has caused liquidity concerns for funds. 

Celsius and CoinFlex have suspended user withdrawals due to "extreme market conditions." 

Three Arrows Capital, a prominent cryptocurrency hedge fund, has liquidated, marking one of the market's largest setbacks.

According to another source, BlockFi investors are "wiped out" and are now writing off the value of their investments.

Since there was no "shop clause" on the term sheet, multiple offers were reportedly being explored. A source said that there were other offers on the table.

In this space, billionaire Bankman-Fried is regarded as a lender of last resort. Voyager received a $500 million financing from Bankman-Fried's company, Alameda Research, in addition to BlockFi.