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FTX has signed a deal allowing it to buy crypto lending firm BlockFi.

The company announced Friday that the agreement provides FTX the ability to purchase BlockFi at a maximum price of $240 million. The deal price is based on specific performance targets, and the firm did not provide a minimum deal price.

According to a CNBC report on Thursday, the term sheet would be signed by the end of this week, with a source adding that it could be as low as $25 million. The term sheet also pads BlockFi’s balance sheet with a larger loan.

FTX increased a previous $250 million revolving credit facility to a total of $400 million. BlockFi executives said the crypto firm had not drawn on this credit facility to date and has “continued to operate all our products and services normally.”

FTX CEO Sam Bankman-Fried has been seen as a lender of last resort in the space. In addition to BlockFi, Bankman-Fried’s company Alameda Research provided a $500 million loan to Voyager.

BlockiFi pointed to crypto market volatility and the failure of hedge fund Three Arrows Capital as a reason why they’re making the deal. It also cited Celsius, which blocked customer deposits two weeks ago citing “extreme market conditions.” BlockFi said it had seen an uptick in client withdrawals that week, despite having no exposure to Celsius.

BlockFi said it has suffered $80 million in losses “which is a small fraction of losses publicly reported by other lenders.” Its losses with the hedge fund will be part of Three Arrows’ ongoing bankruptcy case, the company said.

“Outside of this transaction, we realize that there is a lot of fear, uncertainty, and doubt in the crypto markets,” BlockFi CEO Zac Prince said. “From our vantage point, we continue