BlockFi raises $350m funding to expand into new markets

BlockFi has closed a Series D funding round, led by new investors Bain Capital Ventures, partners of DST Global, Pomp Investments and Tiger Global, at $350m.

Investors including Susquehanna Government Products, Bracket Capital, Paradigm, Valar Ventures, Morgan Creek Digital, Akuna Capital, PJC, participated in the funding round.

Also, Hudson River Trading, ParaFi Capital, Jump Capital, Pacific Century Group, Gaingels, Third Prime, Kenetic, CMS Holdings, Breyer Capital, The Venture Collective and Castle Island Ventures joined the investment round.

The US-based financial services firm is focused on bridging the gap between cryptocurrencies and traditional financial and wealth management products. The current financing round values the company at $3bn.

BlockFi co-founder and CEO 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 year-over-year in 2020 and has more than doubled since the end of 2020.

“Digital assets will continue to democratize finance, serve as a hedge against inflation and expansionary monetary policy, and promote innovation in financial technology and accessibility to financial services.”

BlockFi intends to use the funds to further support its product suite, expand into new markets, and offer capital for select acquisition opportunities.

The company said that its plans will complement its current core product offering, which includes earning yield on digital assets at attractive rates.

The core product offering also includes buying and selling digital assets directly on BlockFi, including Bitcoin, Ethereum, Link, Litecoin, PaxG, and multiple stablecoins, and securing loans in US dollars based on the value of digital assets on the platform.

BlockFi has recently rolled out several retail and institutional investor-focused products, including Bitcoin rewards credit card, BlockFi Bitcoin Trust, OTC trading desk and private client services in Asia.

As part of the funding round, employees who worked for more than one year in the company are allowed to receive liquidity on a part of their equity through a secondary tender offer.