NewsBlockFi receives $350M in growth capital for its booming...

BlockFi receives $350M in growth capital for its booming crypto platform

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BlockFi, a New Jersey-based cryptocurrency financing platform has recently secured a staggering $350 million.

According to Bloomberg, BlockFi recently reported having raised $350 million and is now valued at $3 billion as a result. But what makes this particularly remarkable is that the company recently received $50 million last August in Series C funding with a $435 million valuation in mind. Since the business was started, it has earned $435 million in funding.

BlockFi was created in 2017 by Zac Prince, who was previously in the consumer loan industry. ConsenSys Ventures, a New Jersey-based company, invested $1.6 million in a seed round that was completed in 2018 that included contributions from SoFi as well.

 “If you look at some of the constituents in the round, it’s a testament to increasing institutional adoption, and participation in the crypto ecosystem or crypto as an asset class by very high-quality and sophisticated institutional investors.”

Zac Prince, CEO and co-founder of BlockFi

BlockFi is working on building itself as one of the leading lending platform in the cryptocurrency sector, with regard to dealing with banks and offering an opportunity for investors to profit from their bitcoin assets.

“In this initial CoinField strategy, BlockFi aims to deliver a retail and institutional-facing product suite of financial services”, says Prince, and describes the firm as a crypto space as one that combines these two categories and avoid sale, he added. In a more specific manner, clients may buy and sell crypto assets (Bitcoin, Ethereum, and Link to litecoin, as well as PaxG, along with several other currencies), often directly on the platform.

As of now, BlockFi handles over $15 billion in assets. Prince says that the startup would garner a total of $500 million in sales over the span of two years, placing it way ahead of the forecasts it had produced just one year ago. Over the course of 2019, it saw a significant increase in the number of clients from 10,000 to 250,000. As of Grayscale stated in its 5.07btc holdings in SEC disclosures done in October, the U.S. regulatory body (the SEC) already owns 5.07% of the 5.07 billion in the company’s bitcoin trust (GBTC).

London-based rival, Celsius Network, has also gained tremendous attention over the last year, in the cryptocurrency community. In less than half a year, Celsius’s portfolio assets rose from $3.3 billion in November to over $9.5 billion today and have grown by over 50% to over the same time span, resulting in more than 602,000 users today The industry’s assets under management have risen from around $20 billion at the end of Q3 to about $40 billion at the end of the year, according to a study conducted by Credentified, a credit bureau classifier for the crypto economy.

A number of other companies including current supporters Valar Ventures, Breyer Capital, Susquehanna Government Products, Jump Capital and Paradigm, among others, were co-led as part of series D by the new investor Bain, Bain Capital Ventures, DST Global associates, Pomp Investments, and Tiger Global. Offering a secondary tender as part of the finance round, BlockFi workers who have been working for over one year will gain liquidity from a share of their equity.

BlockFi claims that consumer support for Series D represents both the company’s solid development in business as well as “broader conviction as an asset class in cryptocurrencies.”

“Individual investors, institutional asset managers and corporate treasury departments are all exploring avenues to invest in cryptocurrencies,” the enterprise notes.

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