Celsius Network Raises $400M Led by Canada’s 2nd Largest Pension Fund to Reassure Regulators
Cryptocurrency lender platform Celsius Network has raised $400 million at a valuation for more than $3 billion in new equity funding from investors despite seeing increased scrutiny from US regulators.
Canada’s second-largest pension fund Caisse de dépôt et placement du Québec (CDPQ) led the funding round along with WestCap, a fund founded by former Airbnb and Blackstone executive Laurence Tosi.
Last year, Celsius had raised $30 million in an equity round led by USDT issuer Tether at a pre-money valuation of $120 million.
The crypto lender has been subject to regulatory pushback by state regulators of Kentucky, Alabama, Texas, and New Jersey in the US for its lending products. The lender says the company's interest earnings accounts violate securities laws and don’t clarify to its customers if their deposits are protected.
With its latest funding round, CEO Alex Mashinsky Mashinsky told the Financial Times, he hopes to reassure regulators about the stability of the business and open the doors to mainstream financial markets.
“It’s not $ 400 million, it’s the credibility that comes with the people who wrote those checks.”
The company currently manages $25 billion of crypto assets, up from $10 billion just six months back in March. Celsius Network has more than one million registered users.