Summary: BlockFi’s loan portfolio was at $1.8 billion at the end of the second quarter, with $1.2 billion of collateral posted, leaving them with an exposure of $600 million, the crypto lender reported on Friday.  Standing at $1.5 billion, the overwhelming majority of loans were to institutional clients, leaving just $300 million to retail borrowers, the ...

BlockFi’s loan portfolio was at $1.8 billion at the end of the second quarter, with $1.2 billion of collateral posted, leaving them with an exposure of $600 million, the crypto lender reported on Friday. 

1.png

Standing at $1.5 billion, the overwhelming majority of loans were to institutional clients, leaving just $300 million to retail borrowers, the report claimed. BlockFi publishes quarterly updates of assets on their platform and how they manage related liquidity and credit risk in the name of transparency: one of their core values. 

Exposure in this case is the difference between the loan amount and the posted collateral. Therefore, if BlockFi loans out $1.8 billion with only $1.2 in collateral covering those loans, they would have $600 million in exposure. Collateral could be digital assets, cash or other assets, the company said. 

The New Jersey-based crypto lender said they require many of their borrowers to post varying levels of collateral depending on the borrower’s credit profile. Of course, the borrowers are subject to margin calls. 

This update comes several weeks after BlockFi received a $250 million credit facility from Sam Bankman-Fried’s FTX, as previous exposure to Three Arrows Capital threatened the company. As of July 1, the company said it had not drawn on that credit line. 

Author: Tyler Irvin