Key Takeaways
- • Mike Novogratz's Galaxy Digital led a $52.5 million Series B funding round for BlockFi, a crypto-lending platform that allows investors to borrow against bitcoin and ethereum holdings, announced on July 24, 2018.
- • BlockFi has now raised $54.05 million across two funding rounds in 2018, following an initial $1.55 million seed round in February from ConsenSys Ventures, SoFi, and Kenetic Capital.
- • The platform currently offers loans up to $10 million collateralized by bitcoin or ethereum, enabling crypto holders to access liquidity while retaining asset ownership and upside exposure.
- • BlockFi plans to deploy capital for geographic expansion into new US states and international markets, cryptocurrency product diversification, and new business lines including fixed-income investments, lines of credit, and credit card offerings.
- • The firm has strengthened its leadership by recruiting Rene van Kesteren, former Bank of America managing director who previously ran an equity-structured financing operation, signaling institutional-grade ambitions for credit products.
Summary
Galaxy Digital, the cryptocurrency-focused merchant bank founded by Mike Novogratz, has led a $52.5 million Series B investment in BlockFi, a crypto-lending startup that enables borrowing against digital asset collateral. The funding round, announced on Tuesday, July 24, marks a significant institutional endorsement for the emerging crypto-credit sector and represents Galaxy's continued aggressive deployment into digital asset infrastructure.
BlockFi, founded by former Cognical senior vice president Zac Prince, operates a lending platform serving both corporate and retail clients. The platform allows investors to take loans ranging up to $10 million using bitcoin or ethereum as collateral, enabling participants to monetize their holdings without selling positions and forfeiting potential price appreciation. The company maintains a loan book in the millions and operates from New York.
The Series B funding arrives as BlockFi pursues expansion across multiple dimensions. The firm is targeting growth in new US states and international markets, expanding its cryptocurrency support beyond bitcoin and ethereum, and developing complementary financial products. Prince indicated to Business Insider that BlockFi is exploring fixed-income and debt investment products, lines of credit, and a credit card offering. To execute this vision, BlockFi recruited Rene van Kesteren in May—a former Bank of America managing director who previously led a seven-person equity-structured financing business—signaling a push toward institutional-grade lending infrastructure.
BlockFi's capital trajectory demonstrates accelerating investor appetite for crypto-credit infrastructure. The firm completed a seed round in February 2018 generating $1.55 million from ConsenSys Ventures, SoFi, and Kenetic Capital, followed by this $52.5 million Series B just five months later. Galaxy Digital's participation reflects Novogratz's strategy of deploying capital across crypto market infrastructure, a positioning that has made his merchant bank a central player in digital asset ecosystem development.
BlockFi, founded by former Cognical senior vice president Zac Prince, operates a lending platform serving both corporate and retail clients. The platform allows investors to take loans ranging up to $10 million using bitcoin or ethereum as collateral, enabling participants to monetize their holdings without selling positions and forfeiting potential price appreciation. The company maintains a loan book in the millions and operates from New York.
The Series B funding arrives as BlockFi pursues expansion across multiple dimensions. The firm is targeting growth in new US states and international markets, expanding its cryptocurrency support beyond bitcoin and ethereum, and developing complementary financial products. Prince indicated to Business Insider that BlockFi is exploring fixed-income and debt investment products, lines of credit, and a credit card offering. To execute this vision, BlockFi recruited Rene van Kesteren in May—a former Bank of America managing director who previously led a seven-person equity-structured financing business—signaling a push toward institutional-grade lending infrastructure.
BlockFi's capital trajectory demonstrates accelerating investor appetite for crypto-credit infrastructure. The firm completed a seed round in February 2018 generating $1.55 million from ConsenSys Ventures, SoFi, and Kenetic Capital, followed by this $52.5 million Series B just five months later. Galaxy Digital's participation reflects Novogratz's strategy of deploying capital across crypto market infrastructure, a positioning that has made his merchant bank a central player in digital asset ecosystem development.
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