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Bitcoin Lending Startup BlockFi Raises $50 Million in New Funding

UTC by Godfrey Benjamin · 3 min read
Bitcoin Lending Startup BlockFi Raises $50 Million in New Funding
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BlockFi has managed to attract new funding from investors. At the moment, BlockFi has $1.5 billion in crypto assets on its lending platform and is producing a little less than $10 million per month in revenue.

New York-based Bitcoin lending firm, BlockFi announced on August 20 that it has raised $50 million in a new funding round led by Anthony Pompliano’s Morgan Creek Digital. The funding round also saw other participating investors including Valar Venture which led BlockFi’s Series A and B rounds, as well as CMT Digital, Castle Island Ventures, Winklevoss Capital, SCB 10X, Avon Ventures, HashKey, among others.

With this funding round, BlockFi has shown investors the green side in crypto lending as well as its growth prospects as it has generated over 10x revenue in the past year. The lead for this new funding round Anthony Pompliano will be joining BlockFi’s board of directors following the investment. Pomp, as he is popularly known, has led his Asset Management company, Morgan Creek to participate in all three of BlockFi’s funding rounds over the past 12 months, including the $18 million Series A round in August 2019 and the $30 million Series B round in February 2020.

“BlockFi’s platform offers investors unparalleled capabilities in the digital asset ecosystem. We’re excited to back this world-class team as they continue to add new products and expand into incremental areas that are disrupting traditional finance,” said Anthony Pompliano.

As reported by Coindesk, at the moment, BlockFi has $1.5 billion in crypto assets on its lending platform and is producing a little less than $10 million a month in revenue. CEO Zac Prince revealed this in an interview. He said BlockFi is still trying to add personnel and keep equity capital stable in order to quickly expand geographically. This plans alongside BlockFi’s other ideas will benefit from this cash injection

Credit Card to Boost Lending Offering on BlockFi

With the proliferation of crypto lending platforms worldwide, the exceptional value-added service any of these startups will pioneer will go a long way in carving a deeper niche for such a startup. Consequent upon this, BlockFi’s CEO Prince expects to have the first Bitcoin rewards cards in the market by year’s end and a more public rollout early next year.

“You have to work with quite a few partners to bring a credit card to market,” he said, adding that “some of them haven’t really handled the transition from being fully in-office to being fully remote as smoothly as companies like BlockFi have,” owing to the global COVID-19 situation

Strides During the COVID-19 Pandemic

For most companies who took a deep blow during the COVID-19 laden first half of the year, BlockFi has shown a deep resilience as it has improved its balance sheet within the same period.

The company noted that its total number of funded accounts hit 7,000 in July, creating a new milestone since its inception in 2018. Commenting on the company’s strides in the digital ecosphere, Prince noted that:

“The past twelve months at BlockFi have been nothing short of amazing, and if anything, is a testament to the staying power of bitcoin and other digital assets.”

With BlockFi’s alliances with both its existing and old partners, as well as its competitive offerings and proposed plan, the company expect to top the ladder in the crypto lending niche moving forward.

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