According to TechCrunch, US-based Blockfi earned $350 million at a $3 billion valuation, after a $50 million increase in August at a $450 million valuation. BlockFi has bitcoin investing, an 8.6% APY crypto deposit plan, and crypto-backed loans with rates beginning at 4.5 percent APR to retail customers.
Institutions will also use its crypto financing and trading facilities.
Blockchain and cryptocurrencies are drawing private funding from across the globe.
Because of the retail and institutional funding excitement, BlockFi is flying heavy with other crypto companies.
A New Crypto Unicorn
Attracted by the opportunity for fast returns, retail and institutional investors have poured money into crypto trading sites, causing them to skyrocket in value over the last year.
According to TechCrunch, BlockFi’s mega-round comes when the firm has raised monthly revenue to over $50 million, up from $1.5 million a year earlier, and has crossed $15 billion in funds held on its platform, up from $1 billion last March.
Grayscale Investment’s AUM has reached $20.1 billion, which is more than ten times its valuation at the start of 2020.
To stay ahead of the competition, crypto firms are expanding their financial products, and more players are incorporating crypto trading platforms to capitalise on this demand, representing the space’s maturation from stage one to stage two.
What is Blockfi?
BlockFi is a cryptocurrency custodian that helps consumers to borrow money in US dollars in exchange for their cryptocurrencies. Flori Marquez and Zac Prince are the company’s owners. BlockFi is based in Jersey City, New Jersey, and was formed in August 2017. The company has raised $158.7 million in a Series C round of investment.
BlockFi helps you to collect interest on your cryptocurrency while still allowing you to borrow money in US dollars. BlockFi also allows you to exchange cryptocurrencies. They actually only exchange a tiny range of cryptocurrencies, including BTC, ETH, LTC, USDC, and GUSD.
You can borrow USD against your coins on deposit with BlockFi. The loan sum must be at least $5,000. The loan-to-value (LTV) ratio is set at 50%. That means you’ll have to offer up 50% of the coins as leverage.
BTC, ETH, and LTC are examples of coins that may be used. The term of the loan is 12 months, at a 4.5 percent interest rate. It’s even possible that you’ll be charged an origination fee.
Since cryptocurrencies are so unpredictable, you will easily slip below the 50% LTV. When the LTV hits 70% (known as a trigger event), BlockFi can give you a message that you need to put up more collateral to get the LTV down to 50%.
Some of the published yearly interest rates for Blockfi include:
- BTC Tier 1: 6.00% (for amounts of 0 to 2.5)
- BTC Tier 2: 3.00% (for amounts over 2.5)
- LINK: 5.50%
- ETH: 5.250%
- LTC: 6.50%
- PAXG: 5.00%
- USDT: 9.30%
- USDC: 8.60%
- GUSD: 8.60%
- BUSD: 8.60%
- PAX: 8.60%