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A Message from Our CEO: An Update on BlockFi Operations

Published 17 March, 2020

    As families, communities, industries, and markets continue to grapple with our current public health climate, we wanted to share an update regarding BlockFi’s operations throughout the present period of high volatility. 

    Read on for details on our operational performance during this past week, and our plan of action as we move forward.

    Our Rates
    Our balance sheet is stronger than ever and shifts in the institutional lending markets have created opportunities that expand our margin. As a result, starting April 1st, we are raising our Interest Account rates as follows:

      • BTC Tier 1, 0-5 BTC, 6% APY
      • ETH Tier 1, 0-500 ETH, 4.5% APY
      • GUSD and USDC rates will stay the same at 8.6% APY

    Our Operations

    • We have continued to maintain perfect performance across all of our lending activities with zero losses in the lending book.
    • Last Thursday (3/12) evening Eastern Time, there were particularly violent downward price movements in the cryptocurrency market resulting in very limited liquidity. This was handled strategically by our team and risk management system and we did not liquidate USD loan client collateral below a price of ~$4,500, despite the market reaching lows of ~$3,800. As a result of the team’s prudent actions during this period, our clients’ capital was saved and we also liquidated a smaller percentage (<10%) of our overall USD loan book vs. other market participants.
    • Our system has processed the largest number and volume of daily deposits and withdrawals in BlockFi’s history. Withdrawal processing is operating on our standard cycle and we remain ready to meet our clients’ liquidity needs.
    • Our trading product stayed up 24/7 with no downtime, providing a market that our clients could sell or buy from anytime and processed tens of millions in trading volume.

    Our Team

    • Our client service team has been operating nearly 24/7. On a normal day, we receive 200-300 support tickets and over the last 5 days we received thousands per day. Our team has continued to answer every ticket each day, ensuring our clients receive full support at all times.
    • We continue to function as usual, with full remote status implemented for our entire team, and 100% availability across all our products.

    All credit goes to BlockFi’s team of nearly 100 talented, dedicated professionals, who have gone above and beyond to deliver the world class product and service experience that our clients have come to expect. 

    Our Series B capital raise in January was well timed and BlockFi remains well-capitalized, secure, and liquid while continuing to grow rapidly.

    As the global economy weathers a number of headwinds, including the coronavirus pandemic, rest assured that at BlockFi we will remain a stable source of liquidity, while continuing to provide best-in-class wealth management solutions for our clients and the broader cryptocurrency market. 

    Thank you,
    Zac Prince

    Zac Prince
    CEO and Founder of BlockFi
    @BlockFiZac

     

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    Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Crypto assets are deposited into an account with Gemini or BitGo, our primary custodians and licensed depository trusts. For more information, please see BlockFi’s Terms of Service.
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    Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are riot subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
    BlockFi Lending LLC NMLS ID#1737520 | NMLS Consumer Access
    BlockFi Trading LLC NMLS ID#1873137 | NMLS Consumer Access
    Disclaimer: Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Security is our top priority. Please see our Vulnerability Disclosure Form and Bug Bounty Program.
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