Earlier today, cryptocurrency lender BlockFi announced a halt of withdrawals, which means that BlockFi will likely file for bankruptcy.
PROHASHING deposits its reserves at BlockFi and Genesis. The money deposited at Genesis has been successfully withdrawn. PROHASHING has written off 100% of its deposits at BlockFi, which we valued at $689,700. These losses will be entirely passed onto the owners.
No customer money was lost, PROHASHING remains solvent, and all operations continue as normal. The lost funds are PROHASHING's reserves, which is money available beyond that which is owed to customers. Even if both BlockFi and Genesis had both failed simultaneously, enough customer money remained in cold wallets to fully pay all customer debts. The image below shows PROHASHING's reserves as of November 11, at 11:11am Eastern. The remaining $347,168 of reserves is now stored in bank accounts and cold wallets.
PROHASHING financials dashboard
Even in this depressed cryptocurrency market, PROHASHING is losing only $15,000 per month, and therefore could operate for 2 years even if we conducted no cost-cutting and the prices of coins didn't increase.
We'll post an update on the state of the lending market before Monday, but we wanted to get this confirmation of solvency out immediately. The worldwide architecture upgrade and system downtime scheduled for Monday remains on schedule as planned, and we continue to pay customer balances daily so as not to accrue large debts. Feel free to contact Sarah Manter through any of the normal communications channels if you would like to talk to her, and happy mining!
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