BlockFi Pacing Toward Over $2 Billion in Annualized Spend with World’s First Bitcoin Rewards Credit Card

Note: Some of the cardholder benefits mentioned in this blog post have expired or changed. For the most up-to-date information on cardholder rewards, visit blockfi.com/credit-card. For more detailed information, please see the BlockFi Rewards Program and Crypto Rewards Account Terms

JERSEY CITY, NJ, October 13, 2021 -- BlockFi is pleased to share that the BlockFi Rewards Visa® Signature Credit Card has been met with great engagement. Within 90 days of launching the first credit card to give Bitcoin as a reward to cardholders, credit card spend is currently pacing toward over $2 billion in annualized spending based on growth projections, further proving the appetite for the new credit card crypto rewards category that BlockFi is shaping. The average BlockFi client is on track to spend more than $30,000 per year on average, 450% higher than the average of $5,000 per year on all Amex, Mastercard, and Visa cards in the US.* 

“In just the first 90 days, the BlockFi Rewards Visa® Signature Credit Card has been an incredible success,” said Zac Prince, co-founder & CEO of BlockFi. “The fact that cardholders are pacing towards over $2 billion dollars in annualized spend reinforces BlockFi’s mission to provide clients with broader access to financial products and services that allow them to invest in cryptocurrency more easily and, in the longer term, possibly set them on a path to build generational wealth."

Since launching the card in August 2021, the BlockFi Rewards Credit Card community has grown to over 50,000 cardholders who have amassed over 120 bitcoin (equivalent to $6.8m as of price on October 12th, 2021) since the last #BlockFiDay, which is the monthly credit card rewards redemption date.

Why Bitcoin as a reward? Bitcoin has outperformed other assets so far in 2021. Even with its price fluctuation, Bitcoin’s up 49% on the year, according to recent data published by CoinTelegraph.** In August,  BlockFi cardholders who were paid out rewards at their 3.5% intro rate earned an effective rate*** of over 4.25%, while customers earning the standard 1.5% back were earning a 1.8% effective rate due to Bitcoin’s recent price appreciation. With the intro rewards rate of 3.5%, cardholders can earn an additional $100 in Bitcoin in their first three months. For comparison, if you had earned $100 of Bitcoin in 2017 it would be worth over $4,000 in Bitcoin today.**** While asset appreciation is never guaranteed, based on historical growth no other rewards card can compete with the upside potential of earning Bitcoin.

Who is using the card? One thing we have learned from analyzing early spending patterns is that there is no one type of Bitcoiner. As more people continue to adopt the BlockFi Rewards Credit Card as an easy way to earn bitcoin passively, we are seeing a variety of ways that people use the card. The top three merchants where people are spending the most and, as a result, earning the most rewards are Costco, Amazon, and Home Depot. 

Beyond people earning bitcoin back on the regular and everyday purchases like their groceries, bills, and home improvement projects, it is also notable that people are using major life events as a way to accumulate and grow their Bitcoin portfolio. One of the largest transactions to date was over $20,000 at Tiffany’s, which we are assuming might be an amazing engagement ring or anniversary present for some lucky person. 

And for the Bitcoin maximalist, who just can’t find enough ways to earn bitcoin, Compass Mining has been a top merchant for those who want to earn even more bitcoin from their home mining rigs.

Where are people most bullish on the Bitcoin rewards? The BlockFi Rewards Credit Card is available in the US, excluding New York, and BlockFi cardholders are represented in all 49 states where the card is available, with California, Texas, and Florida being the highest spending states along with Washington D.C. California alone accounts for a little over 20% of total spending and, in turn, earning the most bitcoin rewards.

Bitcoin is part of the future. And BlockFi cardholders know it. El Salvador has taken a historic step by making Bitcoin legal tender. Companies like Tesla, Square, and MicroStrategy have added Bitcoin to their books, and Tesla plans to accept Bitcoin as payment. As the world at large begins to adopt Bitcoin, the BlockFi card offers the easiest way to be a part of the future of money. 

Learn more about the BlockFi Rewards Visa® Signature Card here.

If you want to take advantage of earning Bitcoin back on every purchase, create a BlockFi account and apply now.

*Based on Q2 2021 publicly available operational performance data from American Express, Mastercard, and Visa.