Crypto trading and lending platform BlockFi has raised a fresh $30 million in its Series B funding led by Valor Ventures, a Peter Theil, co-founder of PayPal-backed venture fund.
Anthony Pompano, the co-founder of Morgan Creek Digital which is one of the investors in BlockFI shared in his daily newsletter that just after six months of the first round, the second funding has been secured with “material participation” from the team at Morgan Creek and a number of other existing investors.
The New Jersey-based company plans to use the proceeds from the funds to work on additional products some of which are already under development and increase its staff from current headcount of about 75 people to 125-150 in 2020, during a time while other companies like ConsenSys and Galaxy Digital are laying off over 10% of their employees.
“Thematically, this year for us is all about being able to target folks who aren’t already heavy cryptocurrency users,” Zac Prince, co-founder and CEO of BlockFi told Bloomberg. “We’re going to be going after more mainstream adoption, which is great for us but also great for the sector.”
The future of a global financial system
While Morgan Creek Digital, Winklevoss Capital, and Avon Ventures were among additional backers, Galaxy Digital of Michael Novogratz, which was part of the firm’s Series A funding round, didn’t participate in the second.
BlockFi, which has about $650 million in assets under management on its platform, has grown its revenue 20-fold since January of last year, revealed Prince. Pompliano shared the revenue rate has actually “doubled in the last 45 days.”
“I’m a believer and we’re very bullish on the trajectory of the asset class,” said Prince. He continued, “It’s still very nascent but the underlying trends that drive adoption both on the institutional and retail side have continued to move in the right direction.”
The firm offers a cryptocurrency exchange, US dollar loans against crypto collateral, and interest bearing deposit accounts. They are also planning to launch a credit card this year that pays 1.5% to 3% of “cash back” in Bitcoin.
Pompliano further explained that these products do not require one to buy crypto rather they can digitize their fiat US dollar into stablecoin and deposit them into the interest account and receive 8.6% APY which is more than most people are earning on their savings account.
And this he believes is “the future of a global financial system.”