BlockFi

BlockFi offers a US-regulated borrowing and lending platform that allows users to take out USD loans collateralized by cryptoassets. In addition, the company also offers personalized yield aggregation solutions for users that commit at least USD 3 million in loaned cryptoassets on the platform as well as a dedicated wallet for users to buy, sell, and store crypto. Notably, its yield aggregation product offers a designated client relationship manager that provides users access to negotiated crypto interest rates, competitive trading costs, term or open loan structure, and customizable term length.

As of June 2022, the company served over a million users from over 350 institutions around the globe.

Funding and financials

In August 2021, the company was in talks to raise USD 500 million in Series E funding at a valuation of USD 5 billion. As a result of the crypto market crash in June 2022, The company was reportedly looking to raise funding in June 2022 with Bain Capital Ventures being tipped to lead the round. The expected valuation for this round was around USD 1 billion, which was only 20% of the expected valuation from an earlier Series E negotiation in August 2021. This was largely due to the drop in the crypto market during the first half of 2022 and overall depressed markets during the same period.

In November 2022, subsequent to the collapse of FTX, BlockFi filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of New Jersey. The company stated that it made the filing to “stabilize its business” and enable it to come up with a comprehensive restructuring process for its clients and stakeholders. Blockfi went on to state that it had USD 256.9 million in cash on hand which will be used to provide liquidity for selected operations during the restructuring process.