SAN FRANCISCO: Leading cryptocurrency change is reportedly investing in the struggling crypto loan company BlockFi as the cryptocurrency market collapses. The Wall Street Journal reports that FTX and BlockFi are now negotiating the share in the company.
The takeover discussions took place when BlockFi obtained a $250 million line of credit from FTX, which was widely regarded as a "bailout" by the cryptocurrency sector. "On market rumours, BlockFi doesn't comment. We are still working out the details of the agreement, therefore we are unable to provide any more information at this time. We'll update the public with more information on the deal's conditions in the future "a representative for BlockFi told Cointelegraph.
According to BlockFi CEO Zac Prince, the company has a contract with FTX for a $250 million revolving credit facility that will give BlockFi "access to cash that further bolsters our balance sheet and platform strength."
In a tweet from last week, he had stated that "the revenues of the credit facility are designed to be contractually subservient to all client balances across all account types and would be utilised as needed." I'm tremendously happy with how our team, platform, and risk management practices have fared throughout the recent market turbulence, the speaker noted.