Novogratz's Galaxy Digital Backs $4 million Raise for Crypto-Lender BlockFi

BlockFi, a startup that offers U.S. dollar loans against crypto collateral, has raised $4 million in its latest round this year.

The New York-based firm announced Wednesday that the funds have been raised in convertible debt investments in a round led by Akuna Capital, with participation from Mike Novogratz’s Galaxy Digital Ventures, Anthony Pompliano’s Morgan Creek Digital, Susquehanna Government Products and Fidelity-linked Devonshire Investors.

With the new funds, BlockFi said it plans to grow its team and launch new products, including an interest-earning crypto savings account (slated for Q1 2019), a portfolio line of credit and crypto-backed credit cards. The firm currently provides dollar-denominated loans against bitcoin, ether and litecoin.

“We believe debt and credit markets in the crypto space will continue to grow and BlockFi is well-positioned to maintain its leadership position as the market expands”, said Dean Carlson, head of digital asset investments at Susquehanna.

Today’s funding round follows BlockFi’s previous $52.5 million raise back in July that was led by Galaxy Digital. In February, the firm also received funding of $1.55 million from ConsenSys Ventures, SoFi and Kenetic Capital, among others, for its stated aim of “bridging the gap” between traditional capital markets and the cryptocurrency ecosystem.

Earlier this week, Galaxy Digital also led a $30 million in a Series A funding round investment in digital banking platform Good Money.

Mike Novogratz image via CoinDesk Consensus archive