{"id":8488,"date":"2022-06-22T16:30:00","date_gmt":"2022-06-22T16:30:00","guid":{"rendered":"http:\/\/ci02a45edb70002594"},"modified":"2025-10-01T13:00:13","modified_gmt":"2025-10-01T18:00:13","slug":"blockfi-and-voyager-get-bailed-out-by-ftx","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/business\/blockfi-and-voyager-get-bailed-out-by-ftx","title":{"rendered":"BlockFi And Voyager Get Bailed Out By FTX"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/bitcoin-magazine-pro-banner.jpg\" title=\"\"><\/figure>\n<p><strong><em>The below is an excerpt from a recent edition of Bitcoin Magazine Pro, <\/em>Bitcoin Magazine&#8217;s<em> premium markets newsletter. To be among the first to receive these insights and other on-chain bitcoin market analysis straight to your inbox, <\/em><a href=\"https:\/\/bmpro.substack.com\/\" target=\"_blank\" rel=\"noopener\"><em>subscribe now<\/em><\/a><em>.<\/em><\/strong><\/p>\n<p>Read last week\u2019s issues here: <\/p>\n<ul>\n<li>Monday\u2019s issue &#8211; <a href=\"https:\/\/bmpro.substack.com\/p\/celsius-exchange-halts-withdrawals?s=w\" target=\"_blank\" rel=\"noopener\"><em>Celsius Exchange Halts Withdrawals: What Went Wrong?<\/em><\/a><\/li>\n<li>Tuesday\u2019s issue &#8211; <a href=\"https:\/\/bmpro.substack.com\/p\/celsius-and-steth-a-lesson-on-illiquidity?s=w\" target=\"_blank\" rel=\"noopener\"><em>Celsius And stETH &#8211; A Lesson On (il)Liquidity<\/em><\/a><\/li>\n<li>Wednesday\u2019s issue &#8211; <a href=\"https:\/\/bmpro.substack.com\/p\/three-arrows-capital-faces-liquidation?s=w\" target=\"_blank\" rel=\"noopener\"><em>Three Arrows Capital Faces Liquidation <\/em><\/a><\/li>\n<li>Thursday\u2019s issue &#8211; <a href=\"https:\/\/bmpro.substack.com\/p\/fears-of-further-contagion\" target=\"_blank\" rel=\"noopener\"><em>Fears of Further Contagion <\/em><\/a><\/li>\n<li>Friday\u2019s issue &#8211; <a href=\"https:\/\/bmpro.substack.com\/p\/3ac-and-the-leaning-tower-of-babel\" target=\"_blank\" rel=\"noopener\"><em>3AC And The Leaning Tower Of Babel<\/em><\/a><\/li>\n<\/ul>\n<p>The Sam Bankman-Fried (SBF) FTX and Alameda Research rescue tour is well underway in the broader cryptocurrency space, with both BlockFi and Voyager taking $250 million and $200 million loans respectively from SBF company bailouts. <\/p>\n<p>\u201cI do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion\u201d &#8211; <a href=\"https:\/\/www.npr.org\/2022\/06\/19\/1105853170\/crypto-billionaire-says-fed-is-driving-current-downturn\" target=\"_blank\" rel=\"noopener\">SBF on the state of the exchange\/lendor ecosystem<\/a>. <\/p>\n<p>Currently, very few of the bitcoin and \u201ccrypto\u201d yield-generating counterparties look to be solvent or safe \u2014 whether that\u2019s reinforcing messaging to clients, complete shutdowns in services or efforts to raise cash to cover deposit liabilities. As price draws down, risks are exposed and the liquidity tide goes back out, we\u2019re finding out which institutions will survive this new environment and which ones took on too much risk. <\/p>\n<p>Today, FTX announced a $250 million revolving line of credit, or injection, to BlockFi in an effort to help them \u201cnavigate the market from a position of strength.\u201d This bailout comes at a time when BlockFi has been in the <a href=\"https:\/\/www.theblock.co\/post\/150377\/blockfi-is-raising-a-down-round-at-1-billion-valuation-sources\" target=\"_blank\" rel=\"noopener\">process of closing an additional funding round<\/a> at more than an 80% discount compared to their previous $5 billion-plus valuation just last year. They have also reduced their staff by 20% this month.&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">1) Today we\u2019re injecting $250m into BlockFi and partnering with them so they can navigate the market from a position of strength.<a href=\"https:\/\/t.co\/nocsdi0GLF\">https:\/\/t.co\/nocsdi0GLF<\/a><\/p>\n<p>&mdash; SBF (@SBF_FTX) <a href=\"https:\/\/twitter.com\/SBF_FTX\/status\/1539268631095152642?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">June 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In BlockFi\u2019s case, the loan will be used to strengthen the balance sheet with some unclear, legal language on how that supports client deposits.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Today <a href=\"https:\/\/twitter.com\/BlockFi?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@BlockFi<\/a> signed a term sheet with <a href=\"https:\/\/twitter.com\/FTX_Official?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">@FTX_Official<\/a> to secure a $250M revolving credit facility providing us with access to capital that further bolsters our balance sheet and platform strength.<\/p>\n<p>&mdash; Zac Prince (@CostSegZac) <a href=\"https:\/\/twitter.com\/CostSegZac\/status\/1539216594383028224?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">June 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The Voyager deal is $200 million credit and 15,000 BTC with 5% interest through 2024.<\/p>\n<p>Now, there\u2019s nothing inherently wrong with companies going out to the market and raising extra capital in an attempt to survive the unfolding bear market, but it does raise red flags about the health of each business, the safety of customer deposits and the deleveraging contagion risks of the entire industry.<\/p>\n<p>Injecting more liquidity into large, troubled players as an attempt to stop further bank runs and instill market confidence is in FTX\u2019s best interest. Another institutional blowup means yet another major selloff and death-spiral event for bitcoin and broader cryptocurrency assets. This comes at a time when all three institutions are trying to grow their retail customer base so a healthy, sustainable industry (along with higher prices) is good for business. <\/p>\n<h2>Final Note<\/h2>\n<p>Given the nature of the last two weeks specifically, we strongly recommend that users get their funds into their own custody.&nbsp;<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2025\/01\/bmpro-subscribe-button.png\" title=\"\"><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>As contagion spreads, FTX loans out hundreds of millions to two of the largest yield-generating shops in the space. What does this mean for BlockFi and Voyager?<\/p>\n","protected":false},"author":2736,"featured_media":6354,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[1546,85,1754,828,1778],"class_list":{"0":"post-8488","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-bailout","9":"tag-bitcoin-magazine-pro","10":"tag-blockfi","11":"tag-ftx","12":"tag-loans"},"author_data":{"id":2736,"name":"Dylan Leclair And Sam Rule","nicename":"dylan-leclair-and-sam-rule","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/2b6b26c44e1d269b6e0f99be25243a520901d88fba7899ea664ee1c543b3ff6d?s=96&d=robohash&r=g"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/img_6319.png","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/8488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/2736"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=8488"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/8488\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/6354"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=8488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=8488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=8488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}