Insolvent and bankrupt crypto lender, BlockFi revealed $1.8 billion in outstanding loans from institutional and retail investors in Q2 2022 Transparency Report. The report also unveiled a $0.6 billion in “net exposure”.
In the report, BlockFi highlighted the risk regarding liquidity and credit. The report also shared crucial details about institutional and retail loan portfolios.
Out of the total outstanding loans, nearly $1.5 billion loans stand against Institutional investors while the remaining $300 million outstanding loans belong to retail investors.
In a released document, BlockFi confirmed that it only provides uncollateralized loans to Tier 1 clients. According to it, Tier 1 clients are institutional clients who have “a significant capital base, financial statements audited by reputable third parties, and a willingness to be transparent and engaged with.”
In the calculation of BlockFi holdings and outstanding loan amounts on Bitcoin (BTC), it took the reference of BTC price at $19,986.
BlockFi also made the guidelines to help it “maintain the liquidity necessary to meet all our obligations under our core business activities, which includes institutional and retail borrowing and trading activities.”
These rules stipulated that it would maintain a minimum of 10% of the entire amount owed to clients in inventory, which would be accessible to clients upon demand.
Apart from this, BlockFi stated that the firm will hold a minimum of 50% of the total outstanding amount in places, where it can be retrieved and returned to clients within seven days and can hold up to 90% of total amounts outstanding to clients upon demand. It will be held up in inventory or in loans that can be called back for one year.
