Crypto Lending Company BlockFi Secures $250M Revolving Credit Facility With FTX
Cryptocurrency lending company BlockFi has signed a non-binding agreement with leading US crypto exchange FTX to secure a $250 million revolving credit facility to improve its balance sheet and strengthen its presence.
A revolving credit facility is a type of loan that allows the borrower to withdraw or withdraw, refund and withdraw again.
BlockFi strikes $250 million deal with FTX
Announcing the development on Tuesday, the CEO of BlockFi Zac Prince noted that “the proceeds from the credit facility are intended to be contractually subordinated to all customer balances on all account types (BIA, BPY and loan guarantee) and will be used as needed.
Today @BlockFi signed a term sheet with @FTX_Official to secure a $250 million revolving credit facility giving us access to capital that further strengthens our balance sheet and the strength of our platform.
— Zac Prince (@BlockFiZac) June 21, 2022
Prince also noted that the partnership with crypto derivatives exchange Sam Bankman-Fried would open the door for future endorsements between the two companies as they work to accelerate financial freedom across the world through crypto services. .
The development comes at a time when global financial markets are experiencing a severe downturn that has seen major cryptocurrencies plummet, including stablecoins separating from reserve-backed assets. BTC and ETH fell to fresh lows and traded below $20,000 and $1,000, respectively, pushing the total crypto market capitalization below $1 trillion.
BlockFi cuts headcount by 20%
Last week, BlockFi followed in the footsteps of other crypto companies to cut its workforce by 20% due to the falling crypto market.
“This morning we announced that after taking a lot of time to plan and reflect, we are reducing our workforce by approximately 20%. This is not a decision we take lightly and brings us great sadness,” Prince said.
The CEO also noted that he was proud of how his risk managers have been able to stay afloat with market volatility over the past few weeks after responding to speculation about enterprise risk management policies.
As stated earlier, Coinbase and CryptoCom have already reduced their team size by 18% and 5% respectively for similar reasons.