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BlockFi raises $30 million in Series B round of financing led by Valar Ventures, immediately after its $18.3 million Series A funding round in August
Fremont, CA: BlockFi raises $30 million in Series B funding round led by Peter Thiel's Valar Ventures. The crypto company offers a suite of financial products that effortlessly interact with one another. The investors who participated in Series B round of funding include both new and existing venture capitalists such as 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. BlockFi had previously raised $18.3 million from its Series A funding round.
BlockFi's products mainly include crypto-based interest accounts that provide up to 8.6 percent annual percentage yield on Bitcoin, Ether, and Stablecoins. It also offers crypto-backed loans that allow investors to access liquidity up to a rate of 50 percent on the value of assets in USD and zero-fee trading. The company now has assets on the platform that is worth more than $650M, with a zero percent loss rate across its entire loan portfolio since commencing the lending in January 2018.
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BlockFi grew its revenue by more than 20x in 2019. The company's notable growth and the massive product expansion pipeline were the catalysts of the Series B fundraiser. Proceeds from the funding round will be utilized to extend the team at an accelerated pace and expand BlockFi's range of products to include those accessible to a mainstream audience, initiating with a mobile app in the foreseeable future.
"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," said Zac Prince, CEO, and Co-Founder, BlockFi. "As our platform continues to mature, BlockFi clients benefit from more diverse products, and in turn, greater financial empowerment."
"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," said Flori Marquez, VP of Operations and Co-Founder, BlockFi. "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."
The institutional side of the BlockFi's platform is expanding rapidly and is catering to more than 50 of the most reputable institutional clients in the crypto market. The cherry on top is the new office that BlockFi's is opening in Singapore around the first half of the year to provide an enhanced service to its Asia Pacific institutional clients.
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