BlockFi, a cryptocurrency exchange and digital wallet company, has guaranteed a $250 million credit from leading crypto platform FTX.
Today @BlockFi signed a phrase sheet with @FTX_Official to have a $250M revolving credit facility supplying us with use of capital that further bolsters our balance sheet and platform strength.
— Zac Prince (@BlockFiZac) June 21, 2022
BlockFi has signed a phrase sheet with FTX crypto exchange to have a $250 million revolving credit facility. A revolving credit facility is a kind of credit that allows you to withdraw money, utilize it to finance your company, pay back it after which withdraw it again when it’s needed.
Zac Prince, the Chief executive officer of BlockFi, confirmed this news inside a Twitter thread, claiming the brand new flow of capital would bolster the firm’s balance sheet and strengthen the woking platform. Prince stated:
“The proceeds from the credit facility usually are meant to be contractually subordinated to any or all client balances across all account types (BIA, BPY & loan collateral) and will also be utilized as needed.”
The $250 million credit for BlockFi comes among the marketplace-wide turmoil which has seen many crypto firms cut their workforces making crucial changes for their operations to stay afloat. Many crypto platforms also needed to shut their operations and pause withdrawals because of the bearish dominance on the market.
Related: CeFi interest around the wane: Will BlockFi, Ledn and Nexo rates trend lower?
Prince lauded the efforts of his team throughout the ongoing volatility within the crypto market and mentioned the new credit line is going to be put toward safeguarding users’ funds across all accounts type.
BlockFi was fined $100 million in Feb this season because of its high-yield interest accounts, that have been considered as security products through the U . s . States Registration.
