FTX $250M loan injects a new life into BlockFi
BlockFi announced that the company signed a term sheet with FTX to secure a $250 million USD revolving line of credit providing BlockFi with access to further capital. The proceeds of the credit facility are intended to be contractually subordinate to all client balances across all account types (such as BlockFi Interest Account*, BlockFi Personalized Yield, and BlockFi Loan collateral) at BlockFi and will be used as needed to further bolster BlockFi’s balance sheet, underscoring long-term stability for the company.
“Today’s landmark announcement reinforces the commitment that BlockFi has to serving its clients and ensuring their funds are safeguarded,” said Zac Prince, CEO & Founder of BlockFi. “This agreement also unlocks future collaboration and innovation between BlockFi and FTX as we work to accelerate prosperity worldwide through crypto financial services. This is a significant step forward in our continued commitment to the strength and accessibility of cryptocurrency markets.”
“BlockFi’s team has always demonstrated a strong bias towards prudent risk management and swift action. Protecting customer assets is their top priority which allows them to operate from a position of strength. FTX is excited to partner with BlockFi, a leader in the digital asset ecosystem, to offer first-class products to customers.” said Samuel Bankman-Fried, the CEO and co-founder of FTX.
The term sheet is contingent upon the execution of definitive documents. BlockFi and FTX are working to execute definitive documentation, which is expected to be completed in the coming days.