Billionaire Mike Novogratz Invest $52.5M in Crypto Lending Service BlockFi
Crypto asset lending platform BlockFi has secured $52.5 million in latest funding led by Galaxy Digital Ventures, a digital currency and blockchain technology investment firm founded by Mike Novogratz.
Earlier in February, the New York-based startup had raised $1.55 million in a seed funding round. It plans to use the funding to ramp-up its marketing and business development efforts and making their platform “available to more people, in a variety of cryptocurrencies, in more geographies in the near future.”
Founded by Zac Prince and Flori Marquez, BlockFi is a non-bank lender that offers USD loans to cryptoasset owners, bringing additional liquidity to the blockchain asset sector.
“Galaxy’s investment and decision to make us their exclusive consumer lending partner is a strategic step towards BlockFi delivering credit across the crypto ecosystem,” said CEO and co-founder Zac Prince. “The support we’ve seen from existing clients and investors highlight the strong demand for leveraging Bitcoin or Ether for low-cost USD loans. We look forward to expanding our services to support more cryptocurrencies and more geographic markets in the near future.”
In its official release, the company said that deal with Galaxy Digital Ventures includes a loan purchasing facility and equity investment, making this the industry’s first institutional investment in cryptoasset backed loans. As part of the investment, Chris Ferraro, Head of Principal Investments at Galaxy Digital Ventures joined the BlockFi Board of Directors.
“We’re excited to partner with BlockFi and jointly lead the way for financial institutions to participate in crypto investing strategies,” said Mike Novogratz, Founder of Galaxy Digital Ventures. “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.”