BlockFi crypto-lending platform received $ 50 million from investors

The startup is going to enter the stock market within the next two years. The company’s decision will be influenced by market conditions and the cost of Bitcoin.

Crypto-credit startup BlockFi raised $ 50M in a SeriesC funding round, while the venture capital firm MorganCreek Digital was a leading investor there. This investment round was the second in 2020 for a startup. Since January the company has already received almost $ 100M.

There were many famous investors who participated in the round in addition to Anthony Pompliano’s company, For instance, Winklevoss Capital, BlockFi.

BlockFi issues loans to its clients secured by cryptocurrency. To date, the startup has raised over $ 158 million from investors. In a previous funding round BlockFi closed in February 2020, investors poured $ 30 million into it.

According to Coindesk, the startup is managing a $ 1.5 billion cryptocurrency. The company’s CEO Zach Prince said that the monthly income of the lending platform is slightly below $10 million.

The startup intends to expand its staff and maintain a stable authorized capital – this is necessary for expansion into new markets. Prince also noted that BlockFi expects to launch a plastic card with Bitcoin support by the end of the year.

Even after the March collapse, BlockFi did not refuse from lending, Prince said. Moreover, March turned out to be a favorable period for the crypto lending industry due to its main clients – marketmakers and private traders.

Part of the new investments BlockFi will direct to increase the authorized capital. Pearce believes that in this way the platform will become a less risky institution in the eyes of its counterparties. At the same time, the increase in the balance will in no way affect the services provided by the startup.

BlockFi is also considering going public within the next two years. Everything will depend on the market conditions, in particular, the growth of Bitcoin value will be the determining factor.

 

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