BlockFi CEO, Zac Prince disclosed in a Tuesday tweet that the lending platform has signed a term sheet with the top crypto exchange, FTX. In other words, BlockFi has secured a $250M revolving credit facility providing the crypto firm with access to capital that further bolsters its balance sheet and platform strength.
FTX and BlockFi Partnership
As the crypto market continues to suffer a decline, BlockFi is excited to receive the timely fund injection from FTX. The crypto lending platform was among those hugely affected by the persisting market downtrend.
Recently, BlockFi revealed that it will lay off 20% of its workforce. Moreover, the crypto firm implemented other cost-cutting measures, like reduction in marketing spending and staff compensation in a bid to curtail expenditures.
Interestingly, with this development, BlockFi has regained its financial strength, and all operations on the lending platform are back to normal while asset safety remains guaranteed, according to the FTX CEO.
More so, the multi-million agreement serves as a substantial stride in BlockFi’s commitment to the strength and accessibility of crypto markets. Interestingly, future collaborations between both parties and innovations are expected to arise from this agreement.
In further response, Zac Prince tweeted;
“Throughout the market volatility of the last several weeks, I’m incredibly proud of how our team, platform, and risk management protocols have performed. Today’s landmark announcement reinforces BlockFi’s commitment to serving its clients and ensuring their funds are safeguarded.”
To BlockFi clients, the CEO added; “We are here for you. Our team is battle-tested and has weathered many storms over the years, which only makes us stronger and more resilient as we navigate today’s market environment.”
FTX CEO, Sam Bankman-Fried Reacts
In a follow-up tweet, FTX CEO heralded BlockFi company for their outstanding leadership and risk management expertise that resulted in the successful removal of all risk factors in the face of recent market turbulence.
He noted that “BlockFi customers’ assets are appropriately managed, with no debt/risk from counterparties like Three Arrows Capital (3AC) and Celsius.”
Ultimately, he stated that the $250M partnership will enable BlockFi to “navigate the crypto market from a position of strength.”