Crypto lending platform BlockFi secured $250 million in revolving credit from Sam Bankman-Fried’s FTX, the company announced in a press release on Tuesday.
The credit gives BlockFi access to additional capital at a time when the crypto market has been in a protracted crash, with several companies sinking into liquidity issues. As such, BlockFi will use the funds to strengthen its balance sheet and seek to establish long-term stability.
BlockFi CEO Zac Prince confirmed this via a tweet, noting:
Today @BlockFi signed a term sheet with @FTX_Official to secure a $250 million revolving credit facility giving us access to capital that further strengthens our balance sheet and the strength of our platform.
— Zac Prince (@BlockFiZac) June 21, 2022
He added in a statement:
“This agreement also unlocks future collaboration and innovation between BlockFi and FTX as we work to accelerate global prosperity through crypto financial services. This is a significant step forward in our continued commitment to the strength and accessibility of cryptocurrency markets..”
FTX CEO Bankman-Fried added:
1) Today we are injecting $250 million into BlockFi and partnering with them so they can navigate the market from a position of strength.https://t.co/nocsdi0GLF
— SBF (@SBF_FTX) June 21, 2022
BlockFi’s credit facility deal with FTX comes just days after Bankman-Fried said his company (and Alameda Research) would “step in” to help struggling crypto projects as the market reels a sudden slowdown.
It also comes shortly after BlockFi said it was forced to liquidate one of its big clients for failing to respond to margin calls.
Celsius Network, Three Arrows Capital and Babel Finance all made headlines last week due to liquidity issues.