The past two months have been incredibly dull for the price of bitcoin, but it didn’t affect the businesses in the cryptocurrency space. The sector continues to see growth.
In its latest update, BlockFi reported a 100% increase in revenue in Q2. Bitcoin posted 42% returns in this quarter.
The company not only posted a sharp increase in earnings but also a broadening of the client base and expansion of services to new regions around the globe despite the coronavirus pandemic.
Keep it Coming
Since raising $30 million in Series B funding led by PayPal founder Peter Thiel’s Valar Venture, Morgan Creek Digital, Castle Island Ventures, Winklevoss Capital, Arrington XRP Capital, and many others in February, the company has doubled its monthly revenue.
According to the official announcement, these gains were partially the result of Bitcoin halving in May as, during that week, BlockFi added more clients than ever since its launch in August 2017.
The company added 7,000 new accounts, at a 25% month-over-month growth rate. With this growth, BlockFi is on track to generate $50 million in revenue over the next year. Zac Prince, CEO and Co-Founder of BlockFi said,
“The crypto financial services space is maturing, and we can see a clear turning point today where traditional finance is being outpaced by digital.”
Another factor behind this growth was the new BlockFi mobile app that enables its clients to open and manage to trade, their Interest Account, borrow money against capital holdings, and transfer funds.
Since the launch of the app in beta in April, the company has recorded a 37% week-over-week increase in its funded accounts.
Amidst this rising demand, BlockFi also expanded its global presence by partnering up with Singapore-based hedge fund Three Arrows Capital to grow in the Asia-Pacific region and cryptocurrency mining pool Poolin to cater to the global mining community. Flori Marquez, Co-Founder and Senior Vice-President of Operations at BlockFi said,
“In the near term, this will help us reach additional institutional lenders, but over the long term, we hope it will help with our retail expansion outside of the U.S.”
The firm is also planning to open an office in Singapore with the new hire Rishi Ramchandani, who led global and Asia equities trading teams for Bank of America Merrill Lynch, as the Director of Business Development in Asia. Ramchandani said,
“Institutional support and adoption for crypto has soared among traditional investors, proving it to be a desired and valuable asset class.”
Yet the markets across Asia are an “untapped opportunity,” and Ramchandani believes BlockFi is the “best player” to capitalize on this through its zero-loss track record.