BlockFi is a crypto financial-services firm that operates a platform holding client balances across account types. Amid a broad decline in crypto markets, BlockFi signed a term sheet for a $250 million revolving credit facility from FTX to backstop the firm and stabilize its balance sheet. CEO Zac Prince said the facility is intended to be contractually subordinated to all client balances and will bolster the firm's balance sheet and platform strength. FTX CEO Sam Bankman‑Fried said the partnership is meant to help BlockFi "navigate the market from a position of strength" and emphasized protecting customer assets. The term sheet is contingent on execution of definitive documents, which both companies expect to complete in the coming days. Company statements said operations remain normal and the funding should remove concerns about BlockFi's ability to service clients and temper worries about crypto contagion. BlockFi’s core product includes the BlockFi Interest Account (BIA), which promises high interest payouts to crypto depositors and had amassed over $15 billion in assets by March 31. The company is pursuing plans to go public, with investor materials indicating a 12-to-18-month timeline for an IPO. BlockFi is nearing a $500 million Series E that documents show is expected to close on July 27 and to leave the firm with a $4.75 billion post-money valuation. The Series E is being led by Hedosophia and Third Point LLC, with participation from Coinbase Ventures, Tiger Global and Bain Capital. At the same time, state regulators in Texas, Alabama and New Jersey have alleged the BIA is an unregistered security, prompting notices and deadlines that could affect onboarding and product operations. BlockFi’s leadership says it is engaging with regulators and believes the BIA is lawful while it continues to pursue growth and public-market plans. BlockFi offers a retail and institutional-facing suite of products that let users earn yield on crypto (6% on Bitcoin, 8.6% on stablecoins), buy and sell digital assets, and obtain low-cost loans secured by crypto holdings. The company also provides lending and trade execution services to institutions participating in digital-asset markets. BlockFi has seen rapid growth in users and assets: it now has 265,000 funded retail clients, over 200 institutional clients, and has lent over $10 billion. Assets on the platform rose to $15 billion (from $1 billion the prior March), while monthly revenue increased to over $50 million (up from $1.5 million a year prior). Headcount expanded to about 530 employees and the company reports a 0% loss rate across its lending portfolio since inception. BlockFi plans to launch a Bitcoin Rewards Credit Card, expand its product suite and global retail support (Europe, APAC, LatAm), pursue strategic acquisitions, and double headcount by year’s end. BlockFi is a cryptocurrency lender and financial services company based in Jersey City, NJ. It offers USD loans backed by crypto, interest-earning accounts, trading, and released iOS and Android mobile apps. The company is expanding into new business lines including an upcoming bitcoin rewards-based credit card and support for additional assets and currencies. BlockFi services clients worldwide and in all U.S. states, and has seen particularly strong growth in Asian markets aided by strategic partnerships. It reported more than $1.5B in assets on the platform and a 0% loss rate across its lending portfolio since inception. The firm has bolstered its leadership with hires including a Chief Growth Officer, Chief Security Officer, General Counsel, and a Europe/APAC Managing Director. BlockFi offers a suite of crypto financial products that seamlessly interact with one another. Its products include crypto-based interest accounts providing up to an 8.6% annual percentage yield on Bitcoin, Ether and stablecoins, crypto-backed loans allowing liquidity up to 50% of an asset's value, and zero-fee trading. The company reports more than $650M in assets on the platform and a 0% loss rate across its entire loan portfolio since it began lending in January 2018. BlockFi grew revenue more than 20x in 2019. On the institutional side it services over 50 reputable institutional clients and plans to open a Singapore office in the first half of 2020 to better serve Asia Pacific clients. Proceeds from the raise will be used to grow the team and expand offerings to mainstream users, starting with a mobile app in the coming months.

Total raised

$1.3B

Funding rounds

9

Latest round

Debt Financing

Latest activity

Jun 2022