BlockFi, a New York-based Bitcoin lending firm, has raised $30 million in its series B funding led by Peter Thiel-backed Valar Ventures, also a New York-based fintech focused venture capital firm.
BlockFi announced the news in a blog post published on its website on February 13. According to the announcement participating investors include Morgan Creek Digital, PJC, Akuna Capital, CMT Digital, Avon Ventures, Castle Island Ventures, Purple Arch Ventures, Kenetic Capital, Winklevoss Capital, Arrington XRP Capital, and Hong Kong-based HashKey Capital.
Andrew McCormack, general partner at Valar Ventures, commented:
“We were proud to have made our first investment in the crypto sector with BlockFi, and we’re excited to continue propelling the company forward as they define the industry standard for what a modern financial services company for cryptocurrency looks like. To say the least, BlockFi has been one of the most successful companies we’ve invested in right out of the gate.”
The new funding is geared towards the firm’s plans to its product offering and geographic footprint. The firm said the “proceeds will be utilized to grow the team at an accelerated pace and expand BlockFi’s offerings to include products accessible to a mainstream audience, starting with a mobile app in the coming months.”
BlockFi also raised $18.3 million in series A funding in August last year. The firm also announced plans to open a new office in Singapore in the first half of 2020 to better serve its Asia Pacific institutional clients.
The firm began its lending services in January 2018 with little fanfare and a modest $1.55 million fundraise. At that time, the firm presented itself as an retail lender on which users could store their bitcoin or Ethereum and enjoyed a high yield.
Since then, the firm has seen a rapid growth counting $650 million on its platform. The lender offers a suite of financial products that seamlessly interact with one another. Users can enjoy an 8.6% annual percentage yield by holding Bitcoin, Ether, and stablecoins on firm’s crypto-based interest accounts. BlockFi revenue grew 20x in 2019 and currently, it is serving over 50 of the most reputable institutional clients in the crypto market.
Zac Prince, CEO and co-founder of BlockFi, commented:
“At BlockFi, we believe that access to wealth-building financial products shouldn’t be limited by geography or net worth. With this investment, we’re one step closer to realizing that vision. As our platform continues to mature, BlockFi clients benefit from more diverse products, and in turn, greater financial empowerment.”