The move comes at a time when the crypto industry is grappling with crashing prices, frozen accounts, layoffs and regulatory challenges.
The move comes at a time when the crypto industry is grappling with crashing prices, frozen accounts, layoffs and regulatory challenges.
BlockFi has signed a term sheet with digital asset exchange FTX for a $250 million revolving credit facility, Zack Prince, the chief executive officer of the cryptocurrency firm, said in a tweet on Tuesday.
Agreement will give BlockFi access to capital amid declining digital currency Market, Last week, the company said it was reducing its headcount by about 20%In addition to implementing other cost-cutting measures such as reducing marketing expenses and executive compensation.
FTX founder and CEO Sam Bankman-Fried said in a tweet on Tuesday that the credit facility will enable BlockFi to “navigate the market from a strong position.”
Aggressive rate hikes by the US Federal Reserve and fears of a recession have created volatility in equities and fueled a selloff in cryptocurrencies. Over the weekend, bitcoin, the world’s largest cryptocurrency, fell below the key $20,000 level for the first time since December 2020.
The cryptocurrency winter has also hurt other major players such as Coinbase Global Inc., which last week said it would Cut its workforce by about 18%.
Companies use revolving credit facilities as a form of backstop financing to deal with the adverse impact on other sources of income. For the most part, these features remain undone.