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Celsius would earmark some part of the funds to improve its platform in terms of utility.
Reports have indicated that Alex Mashinsky-owned crypto lending firm Celsius Network has expanded its last funding round to $750 million thanks to oversubscription from participants.
The crypto lending firm disclosed this on Twitter where it also outlined the purposes that the said fund would serve. It detailed how the fund would be focused on the firm’s expansion into new markets and product offerings. Additionally, it will also be geared towards building its CelsiusX project which is focused on developing a bridge between centralized finance and decentralized finance.
Aside from that, Celsius would also earmark some part of the fund to improve its platform in terms of utility and its vision for a sustainable mining system.
While speaking on the funding round, the firm’s CEO Alex Mashinsky said that $750 million raised from oversubscription has proven the strength and capacity of the crypto lender. He said:
“If you think of what we do, which is pay yield to the community, you know, we paid over $1 billion to our community and we basically get that yield from exchanges and institutions. And most of our competitors […] they charge the customers fees and give all that money to their shareholders.”
It’s also worth noting that the latest funding round of Celsius was held in October and saw $400 million raised from equity firm WestCap, and Caisse de dépôt et placement du Québec (CDPQ) and saw the firm’s valuation reaching around $3.5 billion.
Celsius Eyes $10 Billion Valuation in 2022
Like we stated earlier, the Celsius current valuation is $3.5 billion. However, its CEO has projected that the figure could double or triple the current value by next year. According to his projection, the firm could see its valuation rise to as high as over $10 billion especially as the firm has spread its tentacles across different crypto niches.
Also, the crypto lending firm invested $300 million in one of its adventures in the crypto space – Bitcoin mining. Per earlier reports, the investment is geared towards increasing its BTC mining hash rate and also getting a stake in bitcoin mining firms Core Scientific, Rhodium Enterprises and mining pool Luxor Technologies.
Just recently, the firm confirmed the acquisition of a crypto-custody platform GK8 which cost Celsius around $115 million while also revealing one of the key future plans of the company. Mahinsky hinted that the firm could also be joining the burgeoning NFT space soon.
It is worth adding that the lender has been a focus for regulators, especially in Alabama, Kentucky, New Jersey, and Texas where It is alleged to have violated the securities laws with its lending services.