Crypto lending platform BlockFi has secured $250 million in revolving credit score from Sam Bankman-Fried’s FTX, the agency stated in a press launch on Tuesday.
The credit score permits BlockFi entry to additional capital at a time the crypto market has seen a protracted crash, with a number of corporations sinking into liquidity issues. As such, BlockFi will use the funds to bolster its stability sheet and look to determine long-term stability.
Zac Prince, the CEO of BlockFi confirmed this through a tweet, noting:
Right this moment @BlockFi signed a time period sheet with @FTX_Official to safe a $250M revolving credit score facility offering us with entry to capital that additional bolsters our stability sheet and platform energy.
— Zac Prince (@BlockFiZac) June 21, 2022
He added in a press release:
“This settlement additionally unlocks future collaboration and innovation between BlockFi and FTX as we work to speed up prosperity worldwide by means of crypto monetary companies. It is a vital step ahead in our continued dedication to the energy and accessibility of cryptocurrency markets.”
FTX CEO Bankman-Fried added:
1) Right this moment we’re injecting $250m into BlockFi and partnering with them to allow them to navigate the market from a place of energy.https://t.co/nocsdi0GLF
— SBF (@SBF_FTX) June 21, 2022
The credit score facility settlement between BlockFi and FTX comes simply days after Bankman-Fried stated his firm (and Alameda Analysis) would “step in” to assist distressed crypto initiatives because the market reels from a brutal downturn.
It additionally comes not lengthy after BlockFi stated it had been compelled to liquidate certainly one of its massive shoppers for failing to satisfy margin calls.
Celsius Community, Three Arrows Capital and Babel Finance have all hit information headlines up to now week over liquidity points.