Crypto Lending Startup BlockFi Raises $50M In Series C Round Led By Morgan Creek Digital

Investing, News | August 20, 2020 By:

Crypto lending platform BlockFi has raised $50 million in Series C funding led by Morgan Creek Digital. The funding round also saw participation from Valar Ventures – the lead investor in BlockFi’s Series A and B – CMT Digital, Castle Island Ventures, Winklevoss Capital, SCB 10X, Avon Ventures, Purple Arch Ventures, Kenetic Capital, HashKey, NBA player Matthew Dellavedova and two prestigious university endowments.

BlockFi is a New York-based non-bank lender that offers USD loans to cryptocurrency owners. The firm services clients in over 100 countries, and in all 50 US states. Its offerings include crypto-based interest accounts providing up to an 8.6% annual percentage yield on bitcoin, Ether and stablecoins; crypto-backed loans which allow investors to access liquidity up to 50% of an asset’s value in USD; and zero-fee trading.

The latest funding, which is the third in the past 12 months, coming on the heels of Series A and Series B rounds, will be used to grow the team and further expand BlockFi’s business lines, including the upcoming release of a bitcoin rewards-based credit card and support for additional assets and currencies.

“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 $100 million 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 twelve months at BlockFi have been nothing short of amazing, and if anything, is a testament to the staying power of bitcoin and other digital assets,” said Zac Prince, CEO and Co-Founder, BlockFi. “With the support from our investors, 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.”