FTX to Provide $250M Revolving Loan to BlockFi
- June 21, 2022
- 0
BlockFi has signed a letter of intent with cryptocurrency exchange FTX for a $250 million revolving loan facility. Today @BlockFi signed a term paper with @FTX_Official To provide
BlockFi has signed a letter of intent with cryptocurrency exchange FTX for a $250 million revolving loan facility.
Today @BlockFi signed a term paper with @FTX_Official To provide a $250 million revolving credit facility with access to capital that further strengthens our balance sheet and platform strength.
— Zac Prince (@BlockFiZac) 21 June 2022
Access to capital will “further strengthen the stability and reliability of the platform,” according to Zak Prince, CEO of the crypto lending platform.
If necessary, BlockFi will direct resources to support any product.
Prince said the news confirms the platform’s commitment to customer service and the security of its funds.
The CEO of BlockFi added that the agreement creates opportunities for cooperation between companies. He promised to share more details about his future plans soon.
The analyst, nicknamed FatMan, described the deal as a “deal with the devil.”
Congratulations, you made a deal with the devil.
— FatMan (@FatManTerra) 21 June 2022
The user, under the alias Raja, saw in the deal the machinations of FTX head Sam Bankman-Fried “to get everyone in this position and then “save”.
Sam puts everyone in this situation, then saves them. Cool.
– Raja (@RajaZuberi) 21 June 2022
Recall that in June, the media reported that BlockFi is preparing to close a new funding round of $ 1 billion instead of the previously planned $ 5 billion.
After that, the company announced that one-fifth of the staff was laid off.
Amid the recent market turbulence, the crypto lending platform has liquidated at least some positions in hedge fund Three Arrows Capital, according to media reports.
Earlier, Sam Bankman-Fried, head of FTX and Alameda Research, said that he is making efforts to mitigate negative events in the cryptocurrency market due to Celsius and Three Arrows Capital issues.
On June 18, cryptocurrency broker Voyager Digital announced that Alameda Research has provided him with a 200 million USDC loan and a 15,000 BTC (~$300 million) revolving loan.
Earlier, Sam Bankman-Fried, head of the platform, promised to spend “billions” on buying shares in other companies.
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I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
