Will FTX's $250 million credit facility wipe out all BlockFi shareholders?

FTX’s $250 million credit facility offer – if inked as initially proposed – stood to effectively wipe out all BlockFi shareholders, including Morgan Creek Digital, the firm told its investors. Don't miss "FTX: What Happened" with the former president of FTX's U.S. arm and Anthony Scaramucci.

Can Morgan Creek salvage its investment in BlockFi?

The firm has participated in BlockFi’s Series A through D fundraising rounds across three funds and a special purpose vehicle (SPV), a type of investment structure that allows an investor to invest in a single company. Yusko cautioned that while Morgan Creek was doing all it could to salvage its investment in BlockFi, success was far from assured.

What is BlockFi's $250 million revolving credit facility?

Crypto lending platform BlockFi announced that it has secured a $250 million revolving credit facility from FTX, BlockFi CEO Zac Prince said in a tweet on Tuesday, and the company subsequently announced in a press release. Prince said the move “bolsters our balance sheet and platform strength.”

Is BlockFi worth it?

So Blockfi does fit better with more experienced business or crypto people who had at least some exposure to the whole loans and crypto terminology, conditions, and requirements.