BlockFi raises $30 million boosting expansion plans

BlockFi is a wealth management firm that focuses on cryptocurrency-based financial products. The firm’s products are popular with cryptocurrency holders who want to ‘hodl’ their digital assets and earn interest to boost returns.

Unprecedented growth in 2019

BlockFi’s product suite includes crypto-based interest accounts which provide up to an 8.6% annual percentage yield on bitcoin (BTC), ether (ETH), and stablecoins – plus crypto-backed loans that authorize investors to access liquidity of up to 50% of an asset’s value in USD, as well as zero-fee crypto trading.

Additionally, the firm is the only crypto company that boasts a suite of products that seamlessly interact with each other. The BlockFi team says that its simplification of crypto-based financial products is responsible for the burgeoning growth the firm has experienced since its launch.

Flori Marquez, VP of Operations and Co-Founder, BlockFi, stated: “For most people, cryptocurrencies are something out of speculative fiction. Adoption of these assets is limited by the average consumer’s ability to understand how to use them.”

“We’ve demonstrated that we can build financial products around cryptocurrency that can look and feel like the apps you already have on your phone, and we’re well-positioned to drive mainstream adoption,” he added.

BlockFi began lending in January 2018 and since then has seen a 0% loss rate across its entire loan portfolio. 2019 was a phenomenal year for the firm given that it grew its revenue more than twentyfold. BlockFi currently has over $650M in assets on its platform.

The Series B funding round

BlockFi held a Series B funding round in which it raised $30 million from twelve VC firms. Peter Thiel-founded Valar Ventures led the round while the likes of Morgan Creek Digital, Winklevoss Capital, and Arrington XRP Capital also participated.

The New Jersey-based company revealed that the money will be leveraged to continue the firm’s rapid product expansion strategy. The firm will grow its team to support the launching of new products and services, such as a mobile app, while simultaneously expanding its geographical reach.

The CEO and Co-Founder at BlockFi, Zac Prince, said that the funding round would help the firm meet its aims stating, “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.”

BlockFi is currently servicing over 50 reputable institutional clients in the crypto market and is considered one of the most promising US-based startups in this space. This explains the number and quality of well-known venture capital firms that have invested in the company.

The firm is the first crypto firm to be funded by Valar Ventures. Andrew McCormack, general partner at Valar Ventures confirmed the sentiment adding: “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.”

BlockFi plans to open a new office in Singapore in H1/2020.