TechFlow news — BlockFi sent an email to users on Wednesday evening stating that, while navigating market volatility, the company continues to prioritize risk management.
It confirmed that "100% of retail customer withdrawal requests" have been fulfilled, with only 10% of client funds held as collateral. Fifty percent of funds are held in short-term positions, while the remainder is likely deployed in longer-term, yield-generating loans to third parties.
The company also clarified that it has never done business with Celsius and has not engaged in "speculative bets" on DeFi protocols.
The email concluded with a quote from BlockFi CEO and founder Zac Prince: "I am very confident that at some point in the future—maybe six months or 18 months from now—we will look back over the coming months and say, 'That was an extraordinary buying opportunity.' The reason that will happen is because this asset class still has tremendous long-term growth potential."
As previously reported, BlockFi CEO Zac Prince announced that the company has reached the following agreement with FTX US (subject to shareholder approval): FTX US will provide BlockFi with a $400 million revolving credit facility and obtain an option to acquire BlockFi at a variable price of up to $240 million.
