BlockFi Outlines Risks Related to Liquidity, Loans and Credit in Q2: Report

Centralized cryptocurrency lender BlockFi revealed that as of Q2, it has $600 million in “net exposure” and $1.8 billion in outstanding loans from institutional and retail investors. The information was revealed in the firm’s July 21 Transparency Report for Q2, including details on its institutional and retail loan portfolios. The report also described the firm’s liquidity and credit risks. The company indicated that $600 million of the $1.8 billion outstanding loans to customers are uncollateralized. Institutional loans made up $1.5 billion of the total outstanding loans, while retail loans made up the remaining $300 million. We've just published our Q2 Transparency Report with a breakdown of our total AUM, retail and institutional loans, and how we manage related liquidity and credit risk. https://t.co/qcdRDcYmNQ — BlockFi (@BlockFi) July 21, 2022 BlockFi Used BTC Price as Baseline The firm used a Bitcoin (BTC) price of $19,986 as a baseline for its holdings and unusual loan amounts. According to BlockFi, the company has developed rules to ensure sufficient liquidity for meeting all its responsibilities, including institutional and retail lending and trading activities. Those rules require the company to retain at least 10% of the total amount owed to clients in inventory for eventual return upon their request. In addition, it will keep at least 50 percent of owed funds in locations where customers can retrieve them and retu...