UPDATED 20:03 EDT / FEBRUARY 13 2020


Cryptocurrency lending firm BlockFi raises $30M to expand product offerings

Cryptocurrency lending firm BlockFi Lending LLC said today it has raised $30 million in new funding to hire more people and expand its current range of product offerings.

The Series B round was led by Valar Ventures and included Morgan Creek Digital, PJC, Akuna Capital, CMT Digital, Avon Ventures, Castle Island Ventures, Purple Arch Ventures, Kenetic Capital, Winklevoss Capital, Arrington XRP Capital and HashKey Capital.

Founded in 2017, BlockFi operates as a nonbank lender that offers crypto-backed loans that allow investors to borrow against their cryptocurrency holdings as equity. The loans allow applicants to unlock up to 50% of the value of their assets in U.S. dollars and can be used for any purpose, from paying off credit card debt through to buying a home.

BlockFi notes that businesses can use the funds to help them with payroll financing and business expansion. The company accepts collateral in bitcoin, Ethereum or Litecoin.

The money the company lends comes from allowing investors to deposit their cryptocurrency holdings in an interest-bearing account that promises returns of up to 8.6% annually. Deposits can be made in bitcoin, Ethereum, Litecoin, USD Coin and Gemini Dollar.

In addition to lending money and offering interest on deposits, BlockFi also offers a cryptocurrency trading service that allows users to buy, sell and trade with support for the same currencies as accepted as deposits.

Having last raised $18.3 million in venture capital from Valar Ventures in August, BlockFi has grown since that time, with more than $650 million in assets on the platform and a claimed 0% loss rate across its loan portfolio since the company began lending in January 2018. Revenue is said to have grown 20fold during 2019.

“At BlockFi, we believe that access to wealth-building financial products shouldn’t be limited by geography or net worth,” Zac Prince, co-founder and chief executive officer and co-founder, said in a statement. “As our platform continues to mature, BlockFi clients benefit from more diverse products and in turn, greater financial empowerment.”

Including the new funding, BlockFi has raised $108.7 million to date.

Image: BlockFi

A message from John Furrier, co-founder of SiliconANGLE:

Show your support for our mission by joining our Cube Club and Cube Event Community of experts. Join the community that includes Amazon Web Services and Amazon.com CEO Andy Jassy, Dell Technologies founder and CEO Michael Dell, Intel CEO Pat Gelsinger and many more luminaries and experts.

Join Our Community 

Click here to join the free and open Startup Showcase event.

“TheCUBE is part of re:Invent, you know, you guys really are a part of the event and we really appreciate your coming here and I know people appreciate the content you create as well” – Andy Jassy

We really want to hear from you, and we’re looking forward to seeing you at the event and in theCUBE Club.

Click here to join the free and open Startup Showcase event.