How Does BlockFi Make Money?
How does BlockFi make money? First and foremost, BlockFi makes its money by providing loans to institutional borrowers and retail customers. These companies, which are listed in the company's FAQ, can borrow up to 9.75% of the value of their coins, and earn interest as they pay it back. In addition, BlockFi makes money on the spreads between its interest account and loans system. When a cryptocurrency is traded on its platform, BlockFi earns a fee as a sponsor. The company has also begun mining bitcoin to boost its revenue generation strategy. For instance, a user can lend their crypto assets to a BlockFi user, who then can borrow the same funds from the lender. Depending on the value of their assets, this loan can earn as much as 8.6 percent APY. This makes it possible for a BlockFi user to invest in a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Tether, USD Coin, and others. The company makes money in several different ways. It first collects data about i