Crypto lending platform BlockFi has secured $250 million in revolving credit ranking from Sam Bankman-Fried’s FTX, the firm acknowledged in a press originate on Tuesday.
The credit ranking permits BlockFi win entry to to extra capital at a time the crypto market has considered a extended rupture, with several companies sinking into liquidity concerns. As such, BlockFi will utilize the funds to bolster its balance sheet and search for to assign long-term steadiness.
Zac Prince, the CEO of BlockFi confirmed this by a tweet, noting:
Presently time @BlockFi signed a term sheet with @FTX_Official to stable a $250M revolving credit ranking facility offering us with win entry to to capital that extra bolsters our balance sheet and platform strength.
— Zac Prince (@BlockFiZac) June 21, 2022
He added in a press originate:
“This agreement moreover unlocks future collaboration and innovation between BlockFi and FTX as we work to race up prosperity worldwide by crypto monetary companies and products. Right here’s a distinguished step forward in our continued dedication to the strength and accessibility of cryptocurrency markets.”
FTX CEO Bankman-Fried added:
1) Presently time we’re injecting $250m into BlockFi and partnering with them so that they’ll navigate the market from a put of dwelling of strength.https://t.co/nocsdi0GLF
— SBF (@SBF_FTX) June 21, 2022
The credit ranking facility agreement between BlockFi and FTX comes moral days after Bankman-Fried acknowledged his firm (and Alameda Study) would “step in” to again distressed crypto initiatives because the market reels from a brutal downturn.
It moreover comes now no longer long after BlockFi acknowledged it had been compelled to liquidate one of its stout purchasers for failing to meet margin calls.
Celsius Network, Three Arrows Capital and Babel Finance beget all hit news headlines within the previous week over liquidity factors.
