Today BlockFi is excited to announce that we have raised an additional $4 million in convertible debt investments lead by Akuna Capital with participation from Susquehanna Government Products, LLLP, CMT Digital, Recruit Strategic Partners, Galaxy Digital Ventures, Morgan Creek Digital, and Devonshire Investors, the private equity group affiliated with FMR LLC, the parent company of Fidelity Investments. This comes just 5 months after our previous fundraise round, which was lead by Mike Novogratz’s Galaxy Digital Ventures.
“We’re thrilled to have such a strategic group of investors supporting our efforts to bring low-cost credit to crypto market participants,” said Zac Prince, CEO of BlockFi. “Our pragmatic approach to fundraising and team building has enabled us to continue growing through negative market conditions. We are excited to execute on plans to bring new products to market and continue to add more value for our clients.”
This new round of funding will go towards team growth and the launch of new products, including an interest-earning crypto savings account, a portfolio line-of-credit, and crypto-backed credit cards. The company plans to launch the savings account in Q1 2019.
“The BlockFi team has substantive subject matter expertise, decades of experience, and the focus and discipline that we believe is needed in order to implement the BlockFi vision and plan. We’re thrilled to partner with BlockFi,” said Colleen Sullivan, Partner and CEO at CMT Digital.
The past few months have been huge for the ongoing growth of BlockFi and our team. Since June we’ve grown to 14 employees, including the hiring of Mahesh Paolini-Subramanya, BlockFi’s CTO. Mahesh has spent the last few decades creating reliable and resilient distributed systems for mission-critical services. As the CTO at Factom – the leading blockchain in the data security/integrity space – he built out the core blockchain and products, and took the company from a market-cap of $10M to over $500M. We couldn’t be more excited to have him on the team.
“The BlockFi team is providing a critical piece of financial services infrastructure in the crypto space,” said Toby Allen, Head of Digital Assets at Akuna Capital. “Companies like BlockFi are representative of the high-quality development that will facilitate continued consumer adoption.”
“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”, said Dean Carlson, Head of Digital Asset Investments at Susquehanna.
We want to thank our customers for helping us build a company aimed at providing the most trustworthy and affordable credit provider in the crypto industry. Look out for updates regarding upcoming BlockFi products and services by following our blog and social media channels. Feel free to get in touch and let us know if you have any questions. We love hearing from you.
The BlockFi Team