{"id":464747,"date":"2022-06-17T20:48:31","date_gmt":"2022-06-17T17:48:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-lender-blockfi-struggles-to-raise-cash-source-says\/"},"modified":"2022-06-17T20:48:31","modified_gmt":"2022-06-17T17:48:31","slug":"crypto-lender-blockfi-struggles-to-raise-cash-source-says","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-lender-blockfi-struggles-to-raise-cash-source-says\/","title":{"rendered":"#Crypto lender BlockFi struggles to raise cash, source says"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a26b736ea98c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a26b736ea98c\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-lender-blockfi-struggles-to-raise-cash-source-says\/#%E2%80%9CCrypto_lender_BlockFi_struggles_to_raise_cash_source_says%E2%80%9D\" >&#8220;Crypto lender BlockFi struggles to raise cash, source says&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9CCrypto_lender_BlockFi_struggles_to_raise_cash_source_says%E2%80%9D\"><\/span>&#8220;Crypto lender BlockFi struggles to raise cash, source says&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div>\n<aside class=\"single__inline-module alignleft\">\n<\/aside>\n<p>Crypto lender BlockFi is struggling to raise cash despite offering to take a steep discount on its valuation, raising the risk that it could be forced into a financial restructuring, The Post has learned.<\/p>\n<p>The Jersey City, NJ based startup, which last fall raised $400 million in a funding round that valued the company at $5 billion, has for at least a month been trying to raise $100 million at a valuation of just $1 billion \u2014 a haircut that amounts to 80% over half a year, according to sources briefed on the situation.<\/p>\n<p>BlockFi\u2019s advisor JPMorgan pitching the deal as a massive bargain, and has reached out to prospective investors this week that already said they were not interested in participating in the round, a source said.<\/p>\n<p>Nevertheless, insiders say investors have grown increasingly concerned the firm could soon end up like crypto lender Celsius Network, which this week hired restructuring advisors after freezing all withdrawals, swaps and transfers last week because of market volatility, a source close to the situation said.<\/p>\n<p>\u201cThis could be the next one,\u201d the source said, referring to BlockFi.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-60.jpg?w=1024\" alt=\"BlockFi logo\" class=\"wp-image-22705510\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-60.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-60.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-60.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>BlockFi\u2019s previous investors have included Bain Capital Ventures, Valar Ventures, Galaxy Digital, Akuna Capital, SoFi, and Coinbase Ventures.<\/figcaption><figcaption><span class=\"credit\">Bloomberg via Getty Images<\/span><\/figcaption><\/figure>\n<p>\u201cBlockFi does not comment on market rumors,\u201d a company spokeswoman told The Post on Friday.<\/p>\n<p>A spokesperson for JPMorgan declined to comment.<\/p>\n<p>On Thursday, BlockFi Founder and CEO Zac Prince tweeted, \u201cOver the past five years, BlockFi has been battle tested through all types of market conditions. Throughout this current period of market volatility, BlockFi continues to fulfill all withdrawal requests pursuant to our terms of service.\u201d<\/p>\n<p>BlockFi\u2019s previous investors have included Bain Capital Ventures, Valar Ventures, Galaxy Digital, Akuna Capital, SoFi, and Coinbase Ventures.<\/p>\n<aside class=\"single__inline-module alignright\">\n    <\/aside>\n<p>BlockFi on Thursday confirmed that a large client recently failed to meet its obligations on a margin loan, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-16\/blockfi-seeks-to-quell-fear-amid-crypto-hedge-fund-3ac-s-fallout\">Bloomberg reported<\/a>. BlockFi \u201cfully accelerated the loan and fully liquidated or hedged all the associated collateral,\u201d BlockFi\u2019s Chief Executive Zac Prince said on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>. \u201cWe believe we were one of the first to take action with this counterparty.\u201d<\/p>\n<p>Prince didn\u2019t name the client but earlier, the Financial Times reported that BlockFi was among companies that liquidated at least some of their positions with Three Arrows, a giant, Singapore-based hedge fund that\u2019s focused on cyrpto which reportedly has been failing to meet margin calls. \u00a0<\/p>\n<p>On Tuesday, Three Arrows co-founder Zhu Su\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-06-15\/crypto-hedge-fund-s-cryptic-tweet-fuels-speculation-over-losses\">tweeted<\/a>\u00a0that the company is committed to \u201cworking this out\u201d without elaborating.<\/p>\n<p>BlockFi recently slashed its workforce by 20% and a spokesperson told Bloomberg its executive team, including founders Prince and Flori Marquez, took a pay cut. Bloomberg earlier reported that BlockFi is looking to raise funds at a reduced valuation of $1 billion, citing unnamed sources.<\/p>\n<p>Dan Loeb\u2019s Third Point had been poised to become the lead investor in the BlockFi round last fall but pulled out because the Securities and Exchange Commission had started investigating the crypto lending making Loeb nervous, the source said.<\/p>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" loading=\"lazy\" width=\"1024\" height=\"682\" src=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-61.jpg?w=1024\" alt=\"BlockFi logo\" class=\"wp-image-22705522\" srcset=\"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-61.jpg?quality=75&amp;strip=all&amp;w=1535 1536w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-61.jpg?quality=75&amp;strip=all 1024w, https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-61.jpg?quality=75&amp;strip=all&amp;w=512 512w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\"\/><figcaption>BlockFi recently slashed its workforce by 20% and a spokesperson told Bloomberg its executive team, including founders Prince and Flori Marquez, took a pay cut. <\/figcaption><figcaption><span class=\"credit\">SOPA Images\/LightRocket via Getty Images<\/span><\/figcaption><\/figure>\n<p>The SEC in February reached a $100 million settlement with BlockFi and 32 states for failing to register the offers and sales of its retail crypto lending product, according to a public filing.<\/p>\n<p>BlockFi in the settlement agreed to stop unregistered sales.<\/p>\n<p>The Texas securities regulator announced Thursday it is investigating Celsius\u2019 plan to freeze withdrawals and transfers, according to Reuters, and several other states too are reportedly starting their own investigations.<\/p>\n<p>Crypto <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> service The Block first reported on the BlockFi fund raising earlier this month.\n                        <\/p><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/nypost.com\/2022\/06\/17\/crypto-lender-blockfi-struggles-to-raise-cash-source-says\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;Crypto lender BlockFi struggles to raise cash, source says&#8221; Crypto lender BlockFi is struggling to raise cash despite offering to take a steep discount on its valuation, raising the risk that it could be forced into a financial restructuring, The Post has learned. The Jersey City, NJ based startup, which last fall raised $400 million&#8230;<\/p>\n","protected":false},"author":1,"featured_media":464748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/nypost.com\/wp-content\/uploads\/sites\/2\/2022\/06\/BlockFi-62.jpg?quality=75&strip=all&w=1024","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[74862,130439,76127,75535,72667,70792],"class_list":["post-464747","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-bitcoin","tag-6-17-22","tag-cryptocurrency","tag-dan-loeb","tag-investors","tag-jpmorgan-chase"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/464747","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=464747"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/464747\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/464748"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=464747"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=464747"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=464747"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}