BlockFi have announced another change in their interest tier rates for BIA accounts, despite updating them not even two months ago.  This will mark the fourth change since last October.

I have summarized three of the tier changes in the tables below.

BTC

Starting February 1, 2020, the interest tiering begins at 5 BTC, and the Tier 1 rate has been reduced to 5.1% Annual Percentage Yield (APY).   The Tier 2 rate, however, has been raised to 3.2% APY. 

ETH

Starting February 1, 2020, the interest tiering begins at 500 ETH, and the Tier 1 rate has been reduced to 3.6% APY.   The Tier 2 rate for ETH, just like for BTC, has been raised. 

BlockFi's Reason for the Change

The announcement I received in my inbox included the following statement:

"We hope this provides all BlockFi clients with more earning opportunities," - BlockFi, Jan 22, 2020

But exactly who will be earning more?  I charted interest earnings for BlockFi customers who deposited their BTC into a BlockFi BIA account, and assumed they did not make any additional deposits or withdrawals for one year.  The blue line represents interest earned based on the tiering from December 2019, and the red line represents the earnings based on the new tiering.

The two lines intersect when a client deposits 30.5 BTC into a BlockFi BIA account.  That means that unless you have 30.5 BTC in your BIA, your interest earnings will be lower with this newest tiering change.  Based on Bitcoin valued around $8,500 USD at time of writing, that deposit would be worth $259,250!

So BlockFi, tell me exactly who are you providing more earning opportunities to?

Happy HODLing!