New York based startup BlockFi has managed to raise $4 million USD in its latest fundraising round this year.
— BlockFi (@TheRealBlockFi) December 12, 2018
Despite the current state of the bear market, the company which offers a US dollar loan service against cryptocurrency collateral has had a lucrative fundraise. Backed by Mike Novogratz’ Galaxy Digital Ventures, Anthony Pompliano’s Morgan Creek Digital, and other investors, the round led by Akuna Capital raised the funds in convertible debt investments.
The company announced the news with CEO Zac Prince saying that they are “thrilled to have such a strategic group of investors supporting our efforts to bring low-cost credit to crypto market participants”.
BlockFi said that it will be planning to use the funds towards growth of the team, and releasing new products, such as an interest-earning crypto savings account which is looking to launch in the first quarter of 2019, as well as a portfolio line-of-credit, and crypto-backed credit cards.
Dean Carlson, Head of Digital Asset Investments at one of the investor companies Susquehanna, commented on the partnership:
“We believe debt and credit markets in the crypto space will continue to grow and BlockFi is well-positioned to maintain its leadership position as the market expands.”
If this is a good time to build, as Gemini’s Winklevoss twins stated, then BlockFi seems to be heading in the right direction with the right support.