New York-based cryptocurrency lending platform, BlockFi has announced the completion of its Series D funding round, securing $350 million in capital boost.
Per the official announcement, the funding round was led by new investors, including Pomp Investments, Tiger Global, and Bain Capital Ventures, partners of DST Global.
Cryptocurrency-based ventures are positioning their businesses to accommodate the surging adoption and corresponding investments in digital currencies. The new cash injection received by BlockFi will be used to bolster its current business offerings bordering on giving competitive yield earning on customers’ cryptocurrency holdings, direct buying and selling of supported digital assets as well as the provision of crypto loan services.
“In less than six months since we completed our Series C, bitcoin and other digital assets have assumed a central role in many investors’ portfolios and in broader financial markets. Our conviction that digital assets are the future of finance has been vindicated by our client base, which grew 10x YoY in 2020 and has more than doubled since the end of 2020,” said Zac Prince, CEO, and Co-Founder of BlockFi. “Digital assets will continue to democratize finance, serve as a hedge against inflation and expansionary monetary policy, and promote innovation in financial technology and accessibility to financial services.”
With the entire cryptocurrency ecosystem still in its infancy, BlockFi’s new cash boost will enable the firm to roll out its earlier projected investor-focused products and initiatives, including a Bitcoin Rewards Credit Card; the BlockFi Bitcoin Trust; an OTC trading desk; and Private Client Services in Asia.
Global Expansion Into New Markets On The Horizon
Besides the outlined plans, BlockFi also intends to seek new businesses in foreign markets, a mission it hopes to see through in the coming months, thanks to the new cash boosts.
“Our goal for BlockFi has always been for it to facilitate cryptocurrencies going mainstream and each day provides more evidence that is exactly what is occurring,” added Flori Marquez, Senior Vice President of Operations and Co-Founder of BlockFi. “I’m incredibly proud of how quickly we have added new professionals and products to meet market demand, and excited to continue adding talent and products in the months ahead.”
The Series D funding round brings BlockFi to a market valuation of $3 billion, a high enough capitalization for a firm walking unchartered territories in the cryptocurrency ecosystem. The firm recorded a growth of its users from 10,000 back in 2019, to 225,000 today. BlockFi aims to attain sustain this growth, as well as the profitability it has secured since inception, by adequately utilizing its liquid resources.