BlockFi, which lends money to cryptocurrency holders, just raised $18.3 million led by Valar Ventures
Last year, we told you about a New York-based startup that had begun lending cold, hard, cash to cryptocurrency holders who don’t want to offload their holdings but also don’t necessarily want so much of their assets tied up in cryptocurrencies.
Today, that two-year-old company, BlockFi, is announcing $18.3 million in Series A funding led by Peter Thiel’s Valar Ventures, with participation from Winklevoss Capital, Morgan Creek Digital, Akuna Capital and earlier backers Galaxy Digital Ventures and ConsenSys Ventures.
Apparently, BlockFi is gaining some traction.
Last year, after raising $1.5 million in seed funding from ConsenSys Ventures, SoFi and Kenetic Capital, it secured $50 million led by Galaxy Digital Ventures (the digital currency and blockchain tech firm founded by famed investor Mike Novogratz) that is used to loan out cash to customers who use their bitcoin and ethereum holdings as collateral.
The minimum deposit required: $20,000 worth of cryptocurrency.
According to founder Zac Prince, who talked with Bloomberg about BlockFi’s newest round, enough people are now using those loans that BlockFi has seen its monthly revenue grow more than 10 times since January.
No doubt the uptick in loans correlates with the rebound in Bitcoin’s value, which was priced as
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