BlockFi, one of the leaders in the cryptocurrency lending market, successfully closed the Series A financing round, in which it managed to raise $ 18.3 million. Fidelity Investments and Mike Novogratz, the cryptocurrency trading bank Galaxy Digital, increased their previous investments, while Valar Ventures and Winklevoss Capital invested for the first time.
Note that the Valar Ventures portfolio, which led the round, includes fintech startups such as N26, Stash and TransferWise. The deal with BlockFi is the company’s debut in the cryptocurrency industry.
In the past, BlockFi raised around $ 60 million from Galaxy Digital, Akuna Capital, Morgan Creek Digital, Susquehanna Government Product, Devonshire Investors (Fidelity) and Coinbase Ventures.
The company offers loans to corporate and private clients, taking as their collateral their cryptocurrency savings. In addition, BlockFi offers users deposit accounts in cryptocurrencies with a floating interest rate. BlockFi currently has 40 employees, but by the end of the year she intends to hire at least another 20 people.
The company plans to issue its own credit card and enter the Latin American market.