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A peek into BlockFi’s secret financials (it’s not fairly)

Crypto lender BlockFi has had a extremely tumultuous 12 months. After getting caught up within the Terra fiasco, which resulted in some of the prolific asset death spirals of all time, the corporate managed to keep away from chapter after receiving a $400 million lifeline in July 2022. The issue? Its lender was FTX US, and we all know what happened next.

Though BlockFi has tried to separate itself from Sam Bankman-Fried’s fraud within the aftermath of FTX’s collapse, its secret financials inform a distinct story.

This week’s Crypto Biz delves into BlockFi’s uncensored financials, the probability of “Celsius token” ever seeing the sunshine of day and the most recent high-profile funding deal in blockchain.

Breaking: BlockFi uncensored financials reportedly exhibits $1.2B FTX publicity

Simply how dangerous are BlockFi’s financials? For starters, the bankrupt crypto lending agency reportedly has $1.2 billion in belongings tied up in Sam Bankman-Fried’s failed corporations — FTX and Alameda Analysis, to be particular. In accordance with CNBC, BlockFi made these particulars public accidentally, including insult to harm. However, the paperwork present that the corporate had $315.9 million price of belongings linked to FTX and $831.three million in loans to Alameda as of Jan. 14. Though BlockFi has tried to separate itself from SBF’s corporations, it appears to be like prefer it’ll proceed to circle the identical drain as FTX and Alameda.

BlockFi to promote $160M in Bitcoin miner-backed loans: Report

BlockFi is reportedly seeking to sell $160 million in loans backed by 68,000 Bitcoin (BTC) miners as a part of its chapter proceedings. That appears like an excellent technique to boost liquid funds, proper? Sadly, a few of these loans have already defaulted and are doubtless undercollateralized following Bitcoin’s year-long bear market. A authorized skilled interviewed by Cointelegraph cautioned that the loans are in all probability “not price their paper worth anymore.” Let’s hope for BlockFi’s sake that the worth of the mining gear used within the collateral isn’t price lower than the worth of the loans.

New ‘Celsius token’ could also be used to repay collectors: Report

Months earlier than FTX collapsed, crypto lender Celsius filed for bankruptcy after its degen crypto portfolio did not survive the bear market. Billions in buyer deposits now hold within the stability as the corporate appears to be like for an optimum reorganization technique. This week, it was reported that Celsius was contemplating issuing its own token to repay collectors. In fact, this implies relaunching its platform. Apparently, Celsius desires to wrap this up in a brand new publicly-traded firm that’s “correctly licensed.” I’m unsure Alex Mashinsky will ever reach crypto once more, however right here’s hoping Celsius collectors get one thing in return for trusting him within the first place.

Injective launches $150M ecosystem fund to spice up DeFi, Cosmos adoption

If you happen to’re searching for a silver lining in crypto this week, take solace in the truth that corporations are as soon as once more raising hundreds of millions in enterprise capital (VC). Chief amongst them is Injective, the layer-1 blockchain protocol constructed on Cosmos SDK. This week, Injective announced a $150 million ecosystem fund backed by Pantera Capital, Kraken Ventures, Bounce Crypto, KuCoin Ventures, Delphi Labs and others. The fund will assist builders constructing on the Cosmos community — particularly infrastructure options, buying and selling platforms and proof-of-stake technology. Will crypto VC rebound strongly in 2023? Solely time will inform.

Earlier than you go: Why is crypto pumping?

Bitcoin’s value crawled again above $23,000 this week and appeared to have entered the next vary — elevating cautious optimism that the underside is in. However does anybody know why BTC and the broader crypto market are pumping? On this week’s Market Report, I sat down with fellow analysts Marcel Pechman and Joe Corridor to debate whether or not the present pump is sustainable. We additionally explored what could possibly be in retailer for digital belongings within the coming months. You may watch the complete replay beneath:

Crypto Biz is your weekly pulse of the enterprise behind blockchain and crypto, delivered on to your inbox each Thursday.