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BlockFi Raises $30M Series B Led by Valar Ventures

Published, 13 February, 2020

Six months after raising an $18.3M Series A, BlockFi continues charting rapid growth and expansion into 2020

BlockFi announced today that it has raised $30 million in Series B funding led by Valar Ventures. Other participating investors include Morgan Creek Digital, PJC, Akuna Capital, CMT Digital, Avon Ventures, Castle Island Ventures, Purple Arch Ventures, Kenetic Capital, Winklevoss Capital, Arrington XRP Capital, and Hong Kong-based HashKey Capital.

BlockFi is the only crypto company to offer a suite of financial products that seamlessly interact with one another. These products include crypto-based interest accounts providing up to an 8.6% annual percentage yield on Bitcoin, Ether and stablecoins; crypto-backed loans which allow investors to access liquidity up to 50% of an asset’s value in USD; and zero-fee trading. The company now boasts more than $650M in assets on the platform, with a 0% loss rate across its entire loan portfolio since the company began lending in January 2018.

BlockFi grew revenue more than 20x in 2019. The company’s notable growth and the rapid product expansion pipeline were the catalysts for this fundraise. Proceeds will be utilized to grow the team at an accelerated pace and expand BlockFi’s offerings to include products accessible to a mainstream audience, starting with a mobile app in the coming months.

“We were proud to have made our first investment in the crypto sector with BlockFi, and we’re excited to continue propelling the company forward as they define the industry standard for what a modern financial services company for cryptocurrency looks like,” said Andrew McCormack, general partner at Valar Ventures. “To say the least, BlockFi has been one of the most successful companies we’ve invested in right out of the gate.”

“At BlockFi, we believe that access to wealth-building financial products shouldn’t be limited by geography or net worth. With this investment, we’re one step closer to realizing that vision,” said Zac Prince, CEO and Co-Founder, BlockFi. “As our platform continues to mature, BlockFi clients benefit from more diverse products, and in turn, greater financial empowerment.”

“For most people, cryptocurrencies are something out of speculative fiction. Adoption of these assets is limited by the average consumer’s ability to understand how to use them,” said Flori Marquez, VP of Operations and Co-Founder, BlockFi. “We’ve demonstrated that we can build financial products around cryptocurrency that can look and feel like the apps you already have on your phone, and we’re well-positioned to drive mainstream adoption.”

On the institutional side of the platform, BlockFi has expanded rapidly and is servicing over 50 of the most reputable institutional clients in the crypto market. In addition to a rapidly growing team and asset supply base, the company is excited to announce plans to open a new office in Singapore in the first half of 2020 to better serve its Asia Pacific institutional clients.

– The BlockFi Team

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Rates for BlockFi products are subject to change. Digital currency is not legal tender, is not backed by the government, and BIA accounts are not subject to FDIC or SIPC protections. Crypto assets are deposited into an account with Gemini or BitGo, our primary custodians and licensed depository trusts. For more information, please see BlockFi’s Terms of Service__.

Last updated on February 3rd, 2021

As of February 14, 2022, the BlockFi Interest Account (BIA) is no longer available to new clients who are US persons or persons located in the US and existing US clients with BIA accounts are unable to transfer new assets to their BIAs. Learn More.

BlockFi Lending LLC NMLS ID#1737520 | NMLS Consumer Access

BlockFi Trading LLC NMLS ID#1873137 | NMLS Consumer Access

Digital currency is not legal tender, is not backed by the government, and crypto accounts held with BlockFi are not subject to FDIC or SIPC protections. Digital currency values are not static and fluctuate due to market changes. Not all products and services are available in all geographic areas and are subject to applicable terms and conditions. Eligibility for particular products and services is subject to final determination by BlockFi. Rates for BlockFi products are subject to change.

BlockFi Rewards Credit Card: For more information, please see BlockFi’s Terms of Service. BlockFi is not a Bank. Cards are issued by Evolve Bank & Trust, Member FDIC, pursuant to a license from Visa® USA Inc. Rewards are not offered by Evolve Bank & Trust and are instead offered and managed by BlockFi.

BlockFi International Ltd. holds a Class F digital assets business license under the Digital Assets Business Act, 2018 (as amended) and is licensed by the Bermuda Monetary Authority to conduct the following digital assets business activities: (i) issuing, selling or redeeming virtual coins, tokens or any other form of digital assets (ii) operating as a digital asset exchange (iii) providing custodial wallet services (iv) operating as a digital asset derivative exchange provider and (v) operating as a digital assets services vendor.

See blockfi.com/terms for more information.