BlockFi's latest financing has received support from Bain Capital, Tiger Global, and others, with its valuation increasing eightfold in seven months

This article is an original piece by Chain Catcher, authored by Echo.

Cryptocurrency lending company BlockFi announced yesterday that it has completed a $350 million Series D funding round, led by institutions such as Bain Capital, DST Global Partners, Pomp Investments, and Tiger Global, with participation from Paradigm, Morgan Creek Digital, ParaFi Capital, and CMS Holdings.

Notably, BlockFi stated that this funding round values the company at approximately $3 billion, meaning it has become the latest cryptocurrency unicorn. Just seven months ago, public information indicated that its Series C funding valued the company at only $435 million, showcasing an astonishing growth rate. It is reported that BlockFi has raised approximately $100 million in its previous three funding rounds.

BlockFi was founded in 2017, primarily providing credit services based on cryptocurrencies, while also offering cryptocurrency trading execution services for both retail and institutional clients.

In January 2018, BlockFi launched its first product: a loan service supported by cryptocurrencies. The loan service is aimed at cryptocurrency holders, allowing them to borrow funds by collateralizing their cryptocurrencies, unlocking up to 50% of the asset value, providing liquidity without the need to sell, while still holding onto their cryptocurrencies.

In 2019, BlockFi introduced its second major product for retail customers, the BlockFi Interest Account (BIA), where users can deposit cryptocurrencies like Bitcoin, Ethereum, or Litecoin to earn an annual yield of up to 8.6%, with interest accrued daily and paid monthly. Subsequently, BlockFi launched its trading account, enabling users to trade various cryptocurrencies instantly on the BlockFi platform.

Additionally, BlockFi offers customized credit and structured products for institutional clients, including hedge funds/family offices, market makers/OTC trading platforms, cryptocurrency companies, and high-net-worth individuals. Recently, BlockFi plans to launch the world's first Bitcoin rewards credit card, offering unlimited 1.5% Bitcoin cashback on every purchase.

On February 9 of this year, BlockFi announced the launch of a Bitcoin trust product, challenging Grayscale's position. It is understood that this trust will offer shares through private placements to global institutions and other qualified investors in the short term, with plans to expand to include qualified individual investors in the U.S. later.

According to official disclosures, the BlockFi platform currently manages over $15 billion in assets and has generated hundreds of millions in interest for its clients. Since the end of 2019, BlockFi's user base has grown from 10,000 to 225,000. Currently, the company's monthly revenue exceeds $50 million, with a team of over 500 members.

Additionally, data shows that BlockFi generated nearly $100 million in revenue in 2020, a year-on-year increase of 2200%, with a gross margin close to 30%.

Currently, significant competitors of BlockFi in the centralized cryptocurrency lending market include Celsius and Genesis, with Celsius recently stating that it has verified over $10 billion in cryptocurrency assets and has surpassed 485,000 users.