BlockFi raises $50 million Series C
Crypto lending platform BlockFi raises $50 million Series C led by Morgan Creek Digital, indicating institutional interest in Bitcoin financial services.
On August 20, 2020, BlockFi raises $50 million Series C.
BlockFi offered Bitcoin holders the ability to earn interest by lending their cryptocurrency or to borrow against their Bitcoin holdings without selling, creating yield opportunities and liquidity options that were difficult to access through traditional finance. The BlockFi funding reflected broader trends toward institutionalization and financialization of Bitcoin.
Rather than simply holding Bitcoin as a non-yielding asset, investors increasingly sought ways to generate returns on their cryptocurrency holdings through lending, staking (for other cryptocurrencies), or participation in DeFi protocols. BlockFi addressed this demand by aggregating Bitcoin deposits from retail and institutional lenders, paying them interest, and then lending those funds to institutional borrowers who paid higher interest rates.