Rumour: BlockFi seeks new funding ahead of IPO, offer interest on bitcoin

Blockworks writes that BlockFi is looking to hold a Series D funding round to raise new funding. BlockFi is a digital asset management platform where you can deposit bitcoin and altcoins at interest and take out loans.

Morgan Creek Digital is said to be planning to co-lead a Series D funding round for BlockFi with Peter Thiel’s Valar Ventures later this year. Mark Yusko, CEO of Morgan Creek, announced the news to Blockworks, but declined to comment further until the deal has been negotiated.

BlockFi denies
Zac Prince, founder and CEO of BlockFi, responded via email but denied that they are working on this. Valar Ventures did not respond to requests for comment.

BlockFi shares
New Jersey-based BlockFi has raised $158.7 million so far and previously said they plan to go public in the second half of 2021 through a Special Purpose Acquisition Company (SPAC). This means that shares in BlockFi can be traded.

The three-year-old startup began as a provider of loans in US dollars backed by cryptocurrency. Since then, it has expanded its products for private customers with, for example, a high-interest deposit account and a bitcoin credit card. They now also offer products and services for institutional customers. Last month, BlockFi entered into a partnership with Fidelity Digital Assets, a bitcoin custody service. With this partnership, BlockFi wants to provide crypto-secured loans to its institutional customers.

Previous funding rounds
Morgan Creek Digital led BlockFi’s Series C of $50 million in August. Valar led the A and B rounds in August 2019 and February 2020, respectively. BlockFi is the first cryptocurrency company that Valar has invested in.

BlockFi has many large and well-known investors. These include Susquehanna, Fidelity, CMT, Akuna, Three Arrows Capital, Hashkey and NBA basketball player Matthew Dellavedova.

It was also announced yesterday that Andrew Tam is BlockFi’s new senior marketing manager. He previously worked as head of marketing at Credit Karma.

‚Digital assets are rapidly strengthening their position as the future of consumer and institutional finance. I am excited to combine my early career in institutional finance with the tools of technology-driven marketing at BlockFi. The leadership team is delivering innovative solutions and enabling global investors to participate in the cryptocurrency ecosystem,‘ said Tam.