BlockFi refused to accept GBTC, but quickly changed its decision

The Block magazine, citing a source at the company, stated that the BlockFi ledger platform is closing its Bitcoin Trust Grayscale position. But the platform soon changed its decision, noting that it would still accept GBTC as collateral.

According to The Block, BlockFi was planning to drop the service for this asset altogether. The reason for this decision is the shaky position of the trust, the value of its net assets decreased by 34%.

This is how CEO Zach Prince commented on the situation:

“We have a couple of small loans under $10 million with collateral in GBTC. These positions are in the process of being liquidated.”

The move is part of the platform’s anti-crisis campaign to reduce potential liquidity pressures. The collapse of Three Arrows Capital was a major blow to many strip sites, including BlockFi.

On the same day, a spokesman contacted The Block. He stated that management had changed its mind about GBTC. And while the site does reduce the trust’s position, the asset will be serviced as collateral going forward.

“We’re not saying we won’t support GBTC in the future. We are continually evaluating discount rates and are committed to accepting as many asset types as possible as collateral,” a spokesperson stressed.

Grayscale Investment declined to comment. As a reminder, 3AC owned a 5 percent stake in the trust. We also previously reported that BlockFi received a $250 million line of credit from FTX.