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A Note From Our CEO: Zac Prince on Dynamic Markets and Public Health

Published, 12 March, 2020

Given the current dynamic market and public health considerations, I wanted to share a note about how we are managing the current environment at BlockFi. Our business is very strong and continues to grow. Earlier this week we successfully launched the ability to directly transfer cash to BlockFi. We remain focused on delivering the best experience possible for our clients and team members.

Regarding COVID-19 (the coronavirus), last week we tested mandatory work from home for a day. This test was successful and our team is currently “strongly encouraged” to work from home. We are fully capable of effectively operating our systems and processes remotely, if necessary.

In extremely volatile markets, we generally see heightened activity across our product suite (trading, USD loans, crypto lending, and interest accounts). Directionally speaking, upwards crypto price volatility drives more USD borrowing, while downwards volatility, drives more crypto borrowing. Volatility in any direction drives trading activity. This week and, specifically today, is no different and we continue to provide liquidity to the market – but in larger volumes.

All of our products and systems continue to operate as normal. We have experienced no downtime throughout this period and all transactions are being processed normally.

With downward price movement, portions of our USD loan book experience margin calls (and liquidations, in some cases). We are proud of our world-class risk management system that protects BlockFi’s position and optimizes for client experience. Issuing a margin call or selling a client’s assets is never something that we want to do and our system is designed with both our clients’ interests and BlockFi’s risk management top of mind.

As with other periods of downwards volatility (e.g., November 2018), this too shall pass. At BlockFi, we fundamentally believe that investing in digital assets represents one of the best risk-adjusted return profiles available in the market. We become stronger – as a company and as an industry – through every period of volatility that we endure.

Wishing you the best in these dynamic times and don’t hesitate to reach out if we can be helpful.

Thanks, Zac

Zac Prince CEO and Founder of BlockFi @BlockFiZac

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_All BIA balances are stored in a custodial account with Gemini.

_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. For more information, please see BlockFi’s Terms of Service.

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

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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.