A cryptocurrency lending startup just raised a significant amount of money from some of the most well-known names in cryptocurrency venture capital. The company is called Blockfi, and is based in New York City. It should be noted that the money raised was in the form of $4 million in convertible debt fundraising, where debt can actually be converted into equity.
Big Names Involved
The company is a non-bank lender, and it offers loans in USD to those who have cryptocurrency assets. One of the companies that has invested is Morgan Creek Digital, a crypto asset firm.
Morgan Creek Digital recently made headlines for the fact that it had made a massive bet that its crypto index would beat out the S&P 500 over the next 10 years. One of the founders and partners of Morgan Creek Digital is Anthony Pompliano, one of the most famous cryptocurrency proponents in the world, with over 170,000 followers and his own cryptocurrency newsletter.
Another company that invested is Galaxy Digital Ventures, headed by ex-hedge fund manager Mike Novogratz, who is famously bullish on cryptocurrency. The crypto firm recently made the news for the fact that it is apparently losing millions every month currently.
Blockfi services customers all around the world, and also claims to have the “lowest interest rates” and “most flexible products” with regards to the cryptocurrency markets. It also currently services the vast majority of the United States (46 out of 50).
The CEO of Blockfi offered this statement: “We’re thrilled to have such a strategic group of investors supporting our efforts to bring low-cost credit to crypto market participants. Our pragmatic approach to fundraising and team building has enabled us to continue growing through negative market conditions. We are excitd to execute on plans to bring new products to market and continue to add more value for our clients.”
Blockfi also raised over $50 million earlier this year in a funding round led by Galaxy Digital Ventures.