Crypto lender BlockFi gets $52.5m investment
BlockFi, a US-based crypto lender, has raised $52.5 million to expand operations in a round led by Galaxy Digital, a crypto and blockchain investment firm.
Mike Novogratz
Galaxy Digital was founded by Mike Novogratz, ex-manager of a hedge fund and Wall Street tycoon.
BlockFi’s existing investors, which include ConsenSys Ventures and PJC, also participated in the funding round.
“A robust lending market is the keystone for financial systems and BlockFi’s institutional approach and deep lending expertise were key drivers in our decision to partner with them,” says Novogratz.
BlockFi says its lending product is used to invest in real estate, start businesses, diversify into traditional investments or pay down higher-cost debt.
BlockFi’s CEO and co-founder Zac Prince highlights the “strong demand for leveraging Bitcoin and Ether for low-cost USD loans”.
The firm pairs the lowest rates for crypto-to-USD borrowing with “institutional-quality benefits”. It says it is the lender with the most state lending licences in the country because it has invested heavily in a robust legal and compliance approach.
As part of the investment, Chris Ferraro, head of principal investments at Galaxy Digital joined the BlockFi board of directors.
