New Jersey-based cryptocurrency lending company BlockFi’s growth has accelerated quickly over a short period of time. Hot on the heels of a 10-fold surge in revenues over the past year came a successful Series C round of funding last week. BockFi has shared that the financial boost will be used to grow the team and further expand the company’s business lines, including a bitcoin rewards-based credit card and support for additional assets and currencies.
The company shared in a press release that the Series C round raised $50 million, and was led by Morgan Creek Digital. Other investors included Valar Ventures, the lead investor in its Series A and B rounds; Winklevoss Capital; NBA player Matthew Dellavedova of the Cleveland Cavaliers; and two university endowments, among others.
Solidifying the investment, Anthony Pompliano, co-founder and partner at Morgan Creek Digital, joined BlockFi’s Board of Directors. Of the funding, he shared in a prepared statement: “BlockFi’s platform offers investors unparalleled capabilities in the digital asset ecosystem. We’re excited to back this world-class team as the continue to add new products and expand into incremental areas that are disrupting traditional finance.”
BlockFi was founded by Zac Prince and Flori Marquez to offer a suite of financial products that seamlessly interact with one another, enabling clients to build and manage wealth through digital asset investments. So far, the company’s products include zero-free trading and crypto-based interest accounts providing a high annual percentage yield on Bitcoin, Ether, and Stablecoin. According to Prince, investors can further access liquidity of up to 50% of an asset’s value in USD through crypto-backed loans.
This new funding round is the third for the fintech in just over a year. BlockFi is said to have raised $18.3 million in Series A funding led by Valar Ventures in August 2019. In February, the company further raised $30 million, also from Valar Ventures. Today, the reported revenue has grown 10-fold over the last year, putting the company on a straight path towards reaching $100 million in revenue over the next year. BlockFi now has over $1.5 billion assets on the platform.
“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. 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,” said Zac Prince.
Leadership has grown at the top level, with new hires from numerous prestigious institutions. Scaling up operations and acquiring new talent are crucial components of BlockFi’s strategy of driving innovations across the fintech industry. These latest announcements only confirm the fintech’s upward trajectory as it expands its offerings as a full-service cryptocurrency investment platform whilst encouraging crypto-based investments.