Is #BlockFi also in danger of bankruptcy?
11/11 BlockFi tweets that due to the situation regarding #FTX and #Alameda withdrawals are suspended.
11/11 BlockFi tweets that due to the situation regarding #FTX and #Alameda withdrawals are suspended.
https://twitter.com/BlockFi/status/1590875997351866368?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed&ref_url=notion%3A%2F%2Fwww.notion.so%2FCase-Study-2-FTX-Alameda-Blowup-5b68751172bf433ab865e5def0f25c8b
There were several investments that led #BlockFi to be on the brink of bankruptcy.
1- Investing in #GBTC
In July 2021 Blockfi is the second largest holder of GBTC with 19.8 million shares ($500 million)
1- Investing in #GBTC
In July 2021 Blockfi is the second largest holder of GBTC with 19.8 million shares ($500 million)
They received deposits in #BTC from investors (with 5% interest) and reinvest in #GBTC for better interest
Due to reduced demand for GBTC, the GBTC premium, in March becomes negative.
#BlockFi had to sell GBTC because many investors wanted to withdraw their BTC. (Loss $100m)
Due to reduced demand for GBTC, the GBTC premium, in March becomes negative.
#BlockFi had to sell GBTC because many investors wanted to withdraw their BTC. (Loss $100m)
Although the market bull #BlockFi loses over $63.9 million in 2020 and over $221.5 million in 2021.
Below is a document leaked in June showing the negative balance sheets.
Below is a document leaked in June showing the negative balance sheets.
Don't forget that #BTC, from 2020 to 2021, went from $6k to $69k, millions of dollars lost in a bull market.
Are you now confident that it will hold up in the bear market?
Are you now confident that it will hold up in the bear market?
2- Loans to #3AC never repaid
#BlockFi after 3AC's bankruptcy was forced to liquidate assets collateralized by 3AC
#BlockFi after 3AC's bankruptcy was forced to liquidate assets collateralized by 3AC
Like #Celsius, #BlockFi is also at risk of bankruptcy, but to save it is #FTX, which is sending a $250 million credit
https://twitter.com/SBF_FTX/status/1539268631095152642?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed&ref_url=notion%3A%2F%2Fwww.notion.so%2FCase-Study-2-FTX-Alameda-Blowup-5b68751172bf433ab865e5def0f25c8b
Loans that now, after #FTX's bankruptcy, bring it back to the brink of bankruptcy.
CNBC trader reports that the current loan would be $600 million
CNBC trader reports that the current loan would be $600 million
https://twitter.com/cryptomanran/status/1591004690187276289?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed&ref_url=notion%3A%2F%2Fwww.notion.so%2FCase-Study-2-FTX-Alameda-Blowup-5b68751172bf433ab865e5def0f25c8b
What is the status of their wallets? How much liquidity do they have?
We analyzed 6 wallets on #ethereum and this is the result
There are only $31 million left
We analyzed 6 wallets on #ethereum and this is the result
There are only $31 million left
The latest transaction was to transfer $13 million in #ETH from #Coinbase to #BlockFi, will that be enough to save them from bankruptcy?
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