Lender BlockFi collects 30 million US dollars
Photo by Kamil Dratwa from FreeImages

Lender BlockFi collects 30 million US dollars

By SylarHeisenberg | blockchain-blog | 17 Mar 2020

In the now more second round of financing, the New York crypto-lending platform secured a 30 million US dollar investment, led by venture fund Valar Ventures.

In a financing round led by Valar Ventures, the crypto-lending platform BlockFi Inc. secured a US$ 30 million investment. In addition to Valar Ventures - the venture funds of PayPal co-founder Peter Thiel - other investors from the crypto industry such as Morgan Creek and Winklevoss Capital participated in the Series B financing round. This was reported by the news service Bloomberg in an article published on Friday, February 14.

The New York-based company plans to use the money to increase its staff and develop further products. These include the introduction of a crypto-premium credit card, a mobile app and a robo-advisor. Since 2017, they have been offering interest-bearing accounts for Bitcoin (BTC) and crypto-based loans.

Zac Prince, co-founder and CEO of BlockFi, explained the following in an interview with Bloomberg:

This year's theme is to target people who are not yet heavy users of crypto currencies.

Beyond that he continued:

We are striving for a broader acceptance, which is great for us on the one hand, but also great for the sector as a whole

20x revenue in one year

The company has total assets of around 650 million US dollars in digital currencies, the report continues. For comparison, the company announced in a press release in April that it had approximately $53 million in customer crypto assets under management. According to Prince, the company's revenues have increased twenty-fold since January 2019.

The A series: 18 million US dollars

BlockFi already made waves last year with their first financing round, Series A, in which they raised 18 million US dollars. According to an August press release, BlockFi was the first company to receive institutional funding for crypto-based loans in US dollars from investment firm Galaxy Digital. The company, founded by Michael Novogratz, was not part of the financing round this time.

BlockFi plans for private investors

According to the report, the number of private investors who acquire or use digital assets is too low. This is despite the fact that some institutions, such as hedge funds and foundations, do invest in crypto-currencies. This is exactly where Zac Prince wants to start with BlockFi. He hopes to convince precisely this target group. His business model is similar to that of Social Finance Ltd, which links the financial world and the social sector - Prince is planning to do this only with cryptos.

I firmly believe in this and therefore we remain very optimistic about the development of this potential asset class,

Prince said to Bloomberg.

Everything is still very young, but the underlying trends, i.e. acceptance at both institutional and retail level, are moving in the right direction.

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