The cryptocurrency market is booming, and related platforms are reaping the rewards. The latest of which is BlockFi, which recently announced another major funding round, further solidifying the growth opportunities in this space. The company’s founders believe that the enthusiasm from investors on its Series D round reflects, “both the company’s strong business growth, as well as a border conviction in cryptocurrencies as an asset class.”
Founded in 2017 by Zac Prince and Flori Marquez, the Jersey City, New Jersey-based startup uniquely offers a retail and institutional-facing suite of financial products that interact seamlessly with the goal of helping clients to build and manage wealth through their digital asset investments. With BlockFi, clients enjoy zero-fee trading and crypto-based interest accounts. Clients can use the mobile app to earn a yield on their crypto holdings, buy and sell crypto, and secure low-cost loans based on the value of their existing crypto portfolio (i.e. “liquidity without selling”). The platform also lends and provides trade execution services to institutions participating in digital asset markets.
With cryptocurrency adoption soaring exponentially, a company that can provide such a comprehensive list of services enabling consumers to finance their lives seamlessly with crypto is in a great position to ride the boom to the top. This sentiment is shared by investors, seeing its Series D round raise an incredible $350 million valuing the company at $3 billion. This comes after its $50 million Series C last August at a $450 million valuation. The round was co-led by Bain Capital Ventures, partners of DST Global, Pomp Investments, and Tiger Global.
Since the end of 2019, BlockFi’s clients have grown from 10,000 to over 225,000. The company has funded 265,000 retail clients and over 200 institutional clients. The company has shared that it will use the funding to double its 500-person team by the end of the year, launch its bitcoin rewards credit card, and expand the focus of its retail products to markets outside the U.S. The addition to services outside of just crypto was also alluded to in the form of providing capital for “select acquisition opportunities.” There is no doubt that BlockFi will continue to grow alongside cryptocurrency as it aims to bring the alternative currency to the mainstream through its host of services.
