BlockFi Receives $250 Million Credit Facility From FTX (coindesk.com) 19
Crypto lending platform BlockFi announced that it has secured a $250 million revolving credit facility from FTX, BlockFi CEO Zac Prince said in a tweet on Tuesday, and the company subsequently announced in a press release. CoinDesk reports: Prince said the move "bolsters our balance sheet and platform strength." He added that "the proceeds of the credit facility are intended to be contractually subordinate to all client balances across all account types (BIA, BPY & loan collateral) and will be used as needed." This is not the first time FTX CEO Sam Bankman-Fried has stepped in to bail out a major crypto company impacted by the recent market downturn. Last week, crypto broker Voyager Digital (VOYG) secured a revolving line of credit with Bankman-Fried-founded quant trading shop Alameda Research.
Though it is now in the position of backstopping a broader market crash, FTX is reportedly one of the firms that liquidated Celsius -- the troubled decentralized crypto lending platform that was forced to halt all user withdraws last week. Celsius, one of BlockFi's competitors, reportedly ran out of funds to repay depositors due to a series of risky decentralized finance bets. In the press release, BlockFi said the credit facility is contingent on the execution of "definitive documents," which the two companies expect to be completed in "the coming days."
Though it is now in the position of backstopping a broader market crash, FTX is reportedly one of the firms that liquidated Celsius -- the troubled decentralized crypto lending platform that was forced to halt all user withdraws last week. Celsius, one of BlockFi's competitors, reportedly ran out of funds to repay depositors due to a series of risky decentralized finance bets. In the press release, BlockFi said the credit facility is contingent on the execution of "definitive documents," which the two companies expect to be completed in "the coming days."
Re:Bitcoin up (Score:5, Funny)
Oh, I don't know. It seems to be doing a pretty good job of it right now!
Re: Bitcoin up (Score:1)
Re: Bitcoin up (Score:1)
âoeUS Government is likely to do a TARP 2.0, due to BTC's importance in global trade.â
What trade? âThere is none, with exception of the fools trade. All the greater fools who have put real money into this deserve to lose every cent⦠Call it the price you pay for being ignorant.
Re: (Score:2)
Bitcoin is up 15% in a few days.
Sure, but it was down 15% the day before that. It's still down by about 33% in the past couple weeks.
Wait, isn't FTX also a crypto company? (Score:4, Insightful)
Somebody is going to try to make off with that $300 billion of real dollars. It wouldn't surprise me in the slightest if it was one of the exchanges or all of them. Assuming you can actually get out I would recommend you get out now. The jackals are getting ready to feast
Re: (Score:2)
According o that article Trump is worth $4 BILLION DOLLARS.
Only because his father gave him millions to start with. The whole point of the article is that the only business and investing knowledge that a person would need is "Put all money in an index fund" and they would be wealthier than Trump.
Re: Wait, isn't FTX also a crypto company? (Score:1)
Re: (Score:2)
It's painted rocks all the way down.
And I'm fairly certain more than 90% of that $300 billion has already been taken out by the few people who got in at the start.
One question: (Score:2)
is the credit in CryptoCrap or fiat money. I thought so, crypto is junk.
Hada madrina (Score:2)
Crypto has a fairy godmother?
This is getting surreal...
$250M in crypto credit, hopefully (Score:1)
So, doing a JP Morgan during the 1907 Panic? (Score:2)
Well, those who don't know history...