Featured

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

Twitter | Facebook | Telegram | LinkedIn

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.

Last updated on February 3rd, 2021

As of February 14, 2022, the BlockFi Interest Account (BIA) is no longer available to new clients who are US persons or persons located in the US and existing US clients with BIA accounts are unable to transfer new assets to their BIAs. Learn More.

BlockFi Lending LLC NMLS ID#1737520 | NMLS Consumer Access

BlockFi Trading LLC NMLS ID#1873137 | NMLS Consumer Access

Digital currency is not legal tender, is not backed by the government, and crypto accounts held with BlockFi are not subject to FDIC or SIPC protections. Digital currency values are not static and fluctuate due to market changes. Not all products and services are available in all geographic areas and are subject to applicable terms and conditions. Eligibility for particular products and services is subject to final determination by BlockFi. Rates for BlockFi products are subject to change.

BlockFi Rewards Credit Card: For more information, please see BlockFi’s Terms of Service. BlockFi is not a Bank. Cards are issued by Evolve Bank & Trust, Member FDIC, pursuant to a license from Visa® USA Inc. Rewards are not offered by Evolve Bank & Trust and are instead offered and managed by BlockFi.

BlockFi International Ltd. holds a Class F digital assets business license under the Digital Assets Business Act, 2018 (as amended) and is licensed by the Bermuda Monetary Authority to conduct the following digital assets business activities: (i) issuing, selling or redeeming virtual coins, tokens or any other form of digital assets (ii) operating as a digital asset exchange (iii) providing custodial wallet services (iv) operating as a digital asset derivative exchange provider and (v) operating as a digital assets services vendor.

See blockfi.com/terms for more information.