Cryptocurrency lending firm BlockFi raises $50M ahead of bitcoin rewards card release
Cryptocurrency lending firm BlockFi Lending LLC announced today it has raised $50 million in new funding to support its upcoming release of a bitcoin rewards credit card.
The Series C round was led by Morgan Creek Digital and included Valar Ventures, CMT Digital, Castle Island Ventures, Winklevoss Capital, SCB 10X, Avon Ventures, Purple Arch Ventures, Kenetic Capital, HashKey and a number of individual investors.
Founded in 2017, BlockFi operates as a nonbank lender that offers crypto-backed loans, allowing investors to borrow against their cryptocurrency holdings as equity. The loans allow applicants to unlock up to 50% of the value of their assets in U.S. dollars and can be used for any purpose, from paying off credit card debt to buying a home.
The money the company lends comes from allowing investors to deposit their cryptocurrency holdings in an interest-bearing account that promises returns of up to 8.6% annually. Deposits can be made in bitcoin, Ethereum, Litecoin, USD Coin and Gemini Dollar.
The company last raised $30 million in venture capital in February. Since that time, it has continued to grow even during tumultuous times in financial and cryptocurrency markets such as bitcoin’s mini-crash in March.
BlockFi’s revenue has grown tenfold over the past year, putting the company on pace to reach $100 million in revenue over the next 12 months. The company has more than $1.5 billion in assets on its platform with zero loss rates across its lending portfolio since inception.
BlockFi said growth is particularly strong in Asian markets, where the company has established a number of strategic partnerships, including with Siam Commercial Bank PCL’s 10x technology investment arm.
“The past 12 months at BlockFi have been nothing short of amazing and if anything, it’s a testament to the staying power of bitcoin and other digital assets,” Zac Prince, founder and chief executive officer of BlockFi, said in a statement. “With the support from our partners, we’re creating a platform for investors where they aren’t investing in just digital assets anymore — they’re investing in the future, greater financial empowerment and accessibility.”
Including the new funding, BlockFi has raised $158.7 million to date.
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