BlockFi Signs a Landmark Term Sheet with FTX to Provide a $250 Million Credit Facility
21 Jun, 2022, 08:42 ET
Credit facility bolsters BlockFi's balance sheet and underscores long-term stability
JERSEY CITY, N.J., June 21, 2022 /PRNewswire/ -- BlockFi, a global crypto financial services company, today announced that the company signed a term sheet with FTX to secure a $250 million USD revolving line of credit providing BlockFi with access to further capital. The proceeds of the credit facility are intended to be contractually subordinate to all client balances across all account types (such as BlockFi Interest Account*, BlockFi Personalized Yield, and BlockFi Loan collateral) at BlockFi and will be used as needed to further bolster BlockFi's balance sheet, underscoring long-term stability for the company.
"Today's landmark announcement reinforces the commitment that BlockFi has to serving its clients and ensuring their funds are safeguarded," said Zac Prince, CEO & Founder of BlockFi. "This agreement also unlocks future collaboration and innovation between BlockFi and FTX as we work to accelerate prosperity worldwide through crypto financial services. This is a significant step forward in our continued commitment to the strength and accessibility of cryptocurrency markets."
"BlockFi's team has always demonstrated a strong bias towards prudent risk management and swift action. Protecting customer assets is their top priority which allows them to operate from a position of strength. FTX is excited to partner with BlockFi, a leader in the digital asset ecosystem, to offer first-class products to customers," said Samuel Bankman-Fried, the CEO and co-founder of FTX.
The term sheet is contingent upon the execution of definitive documents. BlockFi and FTX are working to execute definitive documentation, which is expected to be completed in the coming days.
BlockFi is a new breed of financial services company. Founded in 2017 by Zac Prince and Flori Marquez, BlockFi is building a bridge between cryptocurrencies and traditional financial and wealth management products to advance the overall digital asset ecosystem for individual and institutional investors. Learn more here: https://blockfi.com/
*The BlockFi Interest Account has not been registered under the Securities Act of 1933 and, unless otherwise exempt from those registration requirements, may not be offered or sold in the United States, to U.S. persons, for the account or benefit of a U.S. person or in any jurisdiction in which such offer would be prohibited.
Disclaimer: Nothing contained in this announcement should be construed as a solicitation of an offer to buy or offer, or recommendation, to acquire or dispose of any security, commodity, investment or to engage in any other transaction. The information provided in this announcement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. This announcement is not directed to any person in any jurisdiction where the publication or availability of the announcement is prohibited, by reason of that person's nationality, residence or otherwise.
Neither BlockFi nor any of its affiliates or representatives provide legal, tax or accounting advice. You should consult your legal and/or tax advisors before making any financial decisions.
Digital currency is not legal tender, is not backed by the government, and crypto interest accounts are not subject to FDIC or SIPC protections.
BlockFi International Ltd. is licensed to conduct digital asset business by the Bermuda Monetary Authority.
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