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BlockFi plans to use the $250 million credit facility to strengthen its balance sheet and platform.
BlockFi CEO Zac Prince stated on June 21 that the crypto lending platform BlockFi had inked a term sheet with the largest crypto exchange FTX to secure a $250 million revolving loan facility.
Today @BlockFi signed a term sheet with @FTX_Official to secure a $250M revolving credit facility providing us with access to capital that further bolsters our balance sheet and platform strength.
— Zac Prince (@BlockFiZac) June 21, 2022
In Prince's view, this arrangement will allow BlockFi to gain access to additional capital, which the company will then employ to improve its balance sheet.
All customer balances across all BlockFi accounts will be subordinated to the proceeds of the credit facility. It has BIA, BPI, and loan collateral. During this time of bear market turmoil, BlockFi plans to reinvest the proceeds to strengthen its business.
The goal of BlockFi is to protect user funds.
According to Prince, BlockFi's commitment to its clients and the safety of their cash is demonstrated by this agreement.
Celsius Network has put a halt to all withdrawals, swaps, and transfers on its platform for the previous week due to a shortage of funds. After failing to make margin calls from lenders, crypto hedge firm Three Arrows Capital (3AC) was forced to liquidate in a cascade effect. 3AC's lenders included BlockFi, according to the Financial Times.
BlockFi has not confirmed its involvement in the liquidation of 3AC, Prince added, but a big counterparty was liquidated after failing to pay margin calls. He didn't say who the counterparty was. But Prince claimed BlockFi was one of the first lenders to liquidate the third party, which he said helped protect customer funds.
FTX terminates its sports contract.
leading crypto exchange An agreement between the Los Angeles Angels and FTX, one of the industry's largest ad spenders, was terminated.
In 2021, FTX paid $135 million for the naming rights to the Miami Heats stadium.
The NBA's Washington Wizards and a crypto company's patch arrangement has been canceled, according to reliable sources. Considering that authorities who supervise the crypto space attend Wizards games, some thought the purchase would have been strategically advantageous.
With the crypto market's value plunging below $1 trillion, it appears that crypto businesses are prioritizing self-preservation before marketing.
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