Despite the ongoing coronavirus pandemic and challenging conditions across a range of economic sectors, BlockFi recently posted strong increases in earnings and a broadening of our client base, while expanding services to new regions around the globe. Since raising $30 million in Series B funding in February, the company has doubled monthly revenue.
The latest gains were partially driven by the Bitcoin halving in May, an event that occurs roughly every four years and typically yields a major uptick in cryptocurrency value. During the week of the halving, BlockFi added more clients than any other week since the company’s founding. Approximately 7,000 new accounts were funded, putting the firm at a 25% month-over-month growth rate. BlockFi is on track to generate $50 million in revenue over the next year.
“The crypto financial services space is maturing and we can see a clear turning point today where traditional finance is being outpaced by digital,” Zac Prince, CEO and Co-Founder of BlockFi, explained. “Savvy veterans of the old guard will continue to look to alternative technologies and digital currencies to build what the next frontier of finance will look like.”
The recent release of a new BlockFi mobile app was another key factor in driving growth. The app enables clients to open and manage a BlockFi Interest Account, trade between cryptocurrency pairs, borrow money against their crypto holdings, and transfer funds directly from their bank or crypto wallet. After launching the app in beta in late April and releasing an enhanced version with additional features in June, BlockFi has seen a 37% week-over-week increase in funded accounts.
Thanks to rising demand and a widening client base, BlockFi has also taken steps to expand its global presence, bringing Singapore-based hedge fund Three Arrows Capital and cryptocurrency mining pool Poolin on board as strategic partners. Three Arrows will support BlockFi’s service offering in the Asia-Pacific region and help the company connect with institutional clients overseas, while Poolin will help BlockFi deliver key financial services to the global mining community.
“In the near term this will help us reach additional institutional lenders, but over the long term we hope it will help with our retail expansion outside of the U.S.,” said Flori Marquez, Co-Founder and Senior Vice-President of Operations at BlockFi. “We have plans for opening an office in Singapore that will cater specifically to this audience.”
To aid in these expansion efforts, BlockFi recently hired Rishi Ramchandani as our new Director of Business Development in Asia. Rishi brings more than 10 years of experience in traditional finance to the team, having recently led global and Asia equities trading teams for Bank of America Merrill Lynch. In his new Singapore-based role at BlockFi, he’ll be focused on growing our presence in the Asia-Pacific region by increasing our institutional partnerships and client roster in Asian markets.
“Institutional support and adoption for crypto has soared among traditional investors, proving it to be a desired and valuable asset class. Yet in markets across Asia, which have been early adopters of crypto, there is an untapped opportunity to capitalize on and evolve institutional trading strategies,” said Ramchandani. “BlockFi, with its pursuit to bridge the gap between traditional finance and crypto, and its zero-loss track record, is the best player in the space to do so.”
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