Just six months after raising a $50 million Series C, crypto-lending startup BlockFi announced Thursday it closed on a massive $350 million Series D, bringing the four-year-old company’s total valuation to $3 billion. The round was co-led by new investor Bain Capital Ventures, partners of DST Global, Pomp Investments and Tiger Global.
This fresh funding brings BlockFi one step closer to achieving its goal of bridging the gap between the burgeoning cryptocurrency industry and more traditional financial and wealth management products. The company is headquartered in Jersey City and currently boasts more than $15 billion in assets on its platform, with monthly revenue exceeding $50 million.
2020 was an especially busy year for BlockFi. It recently rolled out several new products designed specifically for retail and institutional investors, including a Bitcoin rewards credit card, the BlockFi Bitcoin Trust and an OTC trading desk.
The company also claims to have experienced rapid growth over the past year, with its client-base growing 10X. BlockFi’s co-founder and CEO Zac Prince says this level of growth is an indication that cryptocurrency is the “future of finance.”
“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 in the financial services,” Prince said in a statement. “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.”
Indeed, other startups in the crypto space like Paxos and Chainalysis have pulled in triple-digit funding rounds recently too, garnering the support of major investors like Declaration Partners and Accel. Stephen Cohen, a partner at Bain Capital Ventures, says this is just the beginning for cryptocurrency, and thinks BlockFi is well positioned to be a leader in the space.
“BlockFi has solidified itself as a category winner built on superior products, a world-class team, and a brand of trust and reliability for investors and borrowers,” Cohen said in a statement. “We are in the early innings of retail and institutional crypto adoption; as demand grows, we see an enormous opportunity for crypto companies to offer a suite of sophisticated, scalable financial services to engage and empower clients.”
In the meantime, this Series D will provide BlockFi with the capital it needs to expand into new markets, pursue acquisition opportunities and further innovate its product. Prince also told TechCrunch the company plans to double its current global headcount of 500, with more than 100 open tech positions at its offices around the world.
