Crypto Lender BlockFi Plans to Raise Fresh Funds at $5 Billion Valuation

Crypto Lender BlockFi Plans to Raise Fresh Funds at $5 Billion Valuation

The steep growth of BlockFi’s valuation comes with the broader acceleration in startup prices.

BlockFi, the popular cryptocurrency trading and wealth management firm, is once again raising fresh funds just in three months of the last round. BlockFi is reportedly in the late-stage talks with the new and existing investors pegging $5 billion valuations.

Citing people familiar with the matter, The Information reported the news. Leading the finances will be New York-based hedge fund Third Point Management and London-based venture firm Hedosophia.

However, the publication notes that the latest financing hasn’t been disclosed. Thus, the valuations of the company can go higher further. Besides, the steep growth of BlockFi’s valuation comes with the broader acceleration in startup prices.

Interestingly, the latest round values 70% higher than its March funding round. This is also 11 times higher than its valuations last August 2020 when investors priced the company at around $435 million. This is certainly a meteoric rise for the crypto investment firm founded just four years back in 2017.

BlockFi Expanding Its Portfolio of Services amid Its Plans to Raise Funds

The crypto lender has initiated some bold measures in expanding its crypto services to institutions. Last December 2020, BlockFi launched Bitcoin-collateralized cash loans for institutional players in partnership with Fidelity Digital Assets.

Earlier this year in February 2021, BlockFi announced the launch of its own Bitcoin Trust with an annual fee as low as 0.25%. This was to compete against established players and giants like the Grayscale Bitcoin Trust (GBTC). “The BlockFi Bitcoin Trust can more easily meet rapidly growing demands from the public to invest in digital assets, and our decision to custody the Trust’s holdings with Fidelity Digital Assets will help give shareholders peace-of-mind in the security of their investments,” said Yevgeniy Feldman, BlockFi’s Vice President for Institutional Services.

During the last funding round in March 2021, some big industry players had participated. This includes names like Morgan Creek Digital, Breyer Capital, Susquehanna Government Products, LLLP, and Bracket Capital. Back then, BlockFi CEO and co-founder Zac Prince said:

“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″.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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