Crypto lender BlockFi raises $50M Series C funding to provide digital asset-backed loans to crypto investors
We wrote about BlockFi back in August 2019 ago after the crypto lending startup launched in California expanding its lending footprint to 44 states. BlockFi is now the largest and most widely accessible crypto-to-USD lender in the U.S. BlockFi has seen exponential growth since then.
Today, the Jersey City-based BlockFi announced it has raised $50 million in a Series C round led by Morgan Creek Digital, with participation from NBA player Matthew Dellavedova, two prestigious university endowments, and others. The Series C financing comes just six months after a $30 million Series B round. In the past 12 months, the crypto lender BlockFi has raised nearly $100 million, including the current $50 million financing.
Founded by Zac Prince and Flori Marquez in 2017, BlockFi is a provider of cryptocurrency-focused financial products, including zero-fee trading and interest-bearing accounts. The company started lending in January 2018, the company offers the ability to leverage Bitcoin and Ether to obtain USD loans.
BlockFi operates in over 44 U.S. states and is backed by leading investors including Galaxy Digital Ventures LLC, ConsenSys Ventures, and SoFi. BlockFi is a secured non-bank lender that offers USD loans to crypto-asset owners who collateralize the loan with their crypto-assets. Our products bring additional liquidity to the blockchain asset sector and meet the needs of both individuals and institutions holding blockchain assets.
In a recent interview, CEO Zac Prince said 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. Prince said BlockFi is still trying to add personnel and keep equity capital stable in order to quickly expand geographically.
“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, Co-Founder and Partner at Morgan Creek Digital. Pompliano has also joined BlockFi’s Board of Directors.
BlockFi’s revenue has grown ten-fold over the past year, putting the company on pace to reach $100M in revenue over the next 12 months. The company now boasts more than $1.5B in assets on the platform, with a 0% loss rate across its lending portfolio since inception.
“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,” said Zac Prince, CEO and Founder, BlockFi. “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.”
BlockFi holds clients’ Bitcoin and Ether with a registered custodian and issuing loans in USD to their bank accounts. Currently operating in beta launch, lending in 44 US states to retail investors and companies. Its mission is to provide liquidity, transparency, and efficiency to digital financial markets by creating products that meet the needs of consumers and corporations across the globe. We build bridges between traditional finance and digital markets that enable growth for all participants.