Asset management and trading company BlockFi is reportedly trying to upgrade its valuation through new funding
According to a report by technology publication The Information, cryptocurrency start-up BlockFi will “raise several hundred million dollars” through new fundraising. The June 8 report detailed that the New York-based company is in advanced discussions with existing and potential new investors on the matter. The publication cited two unnamed sources who were familiar with developments around the private investment round.
The new Series E funding will raise the company approximately $ 500 million, which will bring its valuation to nearly $ 5 billion. The report revealed that investment advisor and fund manager Third Point Management and growth venture capital firm Hedosophia would lead the fundraising.
BlockFi is currently one of the fastest growing crypto companies in the US. Assets under management are said to be over $ 15 billion. The company, which was founded in 2017, has already successfully completed four financing rounds. Two of these were completed in less than a year.
The company conducted a Series C funding round in August last year that raised $ 50 million on a valuation of $ 450 million. It had also raised around $ 50 million from previous rounds of investments. The last financing was just under three months ago when she announced she had closed a $ 350 million Series D financing, which resulted in the New Jersey company having a valuation of $ 3 billion reached. This funding round was led by Pomplianos Pomp Investments, Tiger Global and Bain Capital Ventures (the venture arm of Bain Capital).
The report added that the company has not closed its doors on the new fundraising and that the valuation could rise above projected value. BlockFi is among the participants who led a Series A funding round of $ 28 million for the blockchain infrastructure platform Blockdaemon. It’s worth noting that the reported BlockFi funding comes just weeks after payment technology company Circle posted a round of $ 440 million.
Startups in the blockchain and crypto sectors have seen significant growth recently, with some of them amassing huge sums of money. The exponential rise in BlockFi’s valuation doubles as the accelerating pace of investment and the shift in investor focus to this area. The proposed round of funding will also help the company recover from the March-April promotion that resulted in the company mistakenly depositing bitcoins to its users.