Reports suggest BlockFi seeks to raise millions at a valuation of $5B
Cryptocurrency lending platform BlockFi is reportedly looking to raise hundreds of millions of dollars in new funding at a valuation of nearly $5 billion, offering further insights into the growth of crypto-focused companies.
The company, which was founded in 2017 by Zac Prince and Flori Marquez, is said to be in late-stage talks with new and existing investors to secure the capital raise, according to technology publication The Information. New York-based hedge fund Third Point Management and Hedosophia, a London-based venture capital firm, are reportedly leading the new funding round.
The same report indicated that the latest funding round has not closed, which means BlockFi’s desired $5 billion valuation could grow.
As Cointelegraph reported, BlockFi raised $350 million in Series D financing earlier this year, building on the $100 million it raised via three earlier funding rounds. The platform has been a source of growth and adoption during the crypto bull market, which saw digital lending products reach the mainstream.
BlockFi manages more than $15 billion in assets. During the height of crypto euphoria earlier this year, BlockFi clients were earning record interest payments on their Bitcoin (BTC), Ether (ETH) and stablecoin holdings.
Even during the latest crypto market collapse, blockchain startups continue to be a source of capital accumulation. Venture capitalists have invested over $16 billion in blockchain equity since 2012, with the pace of investments seemingly growing over the past year as more institutional players pivot towards the space.
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