Zac Prince, the CEO of BlockFi, confirmed the news in a Twitter thread, claiming the new flow of capital would bolster the firm’s balance sheet and strengthen the platform. Prince said:
“The proceeds of the credit facility are intended to be contractually subordinated to all client balances across all account types and will be used as needed.” The $250 million credit for BlockFi comes amid the market-wide turmoil that has seen many crypto firms cut their workforces and make crucial changes to their operations to remain afloat. Many crypto platforms also had to shut their operations and pause withdrawals owing to the bearish dominance in the market.
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