Digital Assets: Crypto Lender BlockFi Raises $50M in a Series C Round
This third round in the past 12 months was led by Morgan Creek Digital.
BlockFi, an online crypto lender that also offers accounts paying compound interest and trading, raised $ 50 million in a Series C round led by Morgan Creek Digital.
Other participating investors include Peter Thiel-backed Valar Ventures (the lead investor in BlockFi’s Series A and B), CMT Digital, Castle Island Ventures, Winklevoss Capital, SCB 10X, Avon Ventures, Purple Arch Ventures, Kenetic Capital, HashKey, Michael Antonov, NBA player Matthew Dellavedova, and two university endowments. (BlockFi)
According to THE BLOCK, which quoted a knowledgeable source, the latest round achieved a $ 400 million pre-money valuation.
Solid growth at BlockFi
Three funding rounds within the space of 12 months show that BlockFi’s business model is working.
Revenue has grown 10 X over the past year. The company will likely touch $ 100 million in revenue in the coming 12 months.
Moreover, it already carries $ 1.5 billion as assets on its platform. It also claims a 0% loss rate on its lending portfolio since its launch.
BlockFi a full-service crypto platform
BlockFi has expanded beyond crypto lending and has become a full-service investment platform for cryptocurrencies. In fact, many of its backers are also users of the platform.
Its bouquet of products includes crypto-based interest accounts providing a high annual percentage yield on bitcoin, ether, and stablecoins; crypto-backed loans that allow investors to access liquidity up to 50% of an asset’s value in USD; and zero-fee trading.
Furthermore, BlockFi intends to soon offer a bitcoin rewards-based credit card and additional assets and currencies on its platform.
Rising crypto adoption
The company claims that it has capitalized on the recent macroeconomic trends amidst unparalleled turbulence in the world markets.
That’s because investors have seized upon bitcoin as an investable and uncorrelated asset compared to equities and other commodities.
Matthew Dellavedova, NBA player with the Cleveland Cavaliers said: “To be able to earn interest on crypto is going to be attractive for a lot of people in a low yield environment.”
“Bitcoin, Ether, digital assets, cryptocurrency, blockchain – words that years ago were considered a pipedream are now more acceptable investment options to safeguard wealth at a time when traditional market performance doesn’t even make sense to analysts,” said Flori Marquez, SVP of Operations and Co-Founder, BlockFi.
“We’re excited to back this world-class team as they continue to add new products and expand into incremental areas that are disrupting traditional finance,” said Anthony Pompliano, Co-Founder and Partner at Morgan Creek Digital.
Moreover, according to BlockFi chief executive Zac Prince, who was speaking to THE BLOCK, the firm was toying with the idea of tapping the public markets through a SPAC (special-purpose acquisition company).
Related Story: Digital Lending Startup BlockFi Raises $30 Million Series B
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