Mike Novogratz’s Galaxy Digital Participates in BlockFi’s $4 Million Financing Round
Hedge fund manager turned crypto evangelist Mike Novogratz just backed a $4 million raise for cryptocurrency-based lending platform BlockFi. Novogratz’s Galaxy Digital participated in the latest funding round for the prominent crypto startup.
BlockFi announced the results of its $4 million funding round this past week. The New York-based company announced that funds have been raised in convertible debt investments in a round led by Akuna Capital. Other firms participating in the round included Anthony Pompliano’s Morgan Creek Digital, Susquehanna Government Products, and Fidelity-backed Devonshire Investors, along with Novogratz’s Galaxy Digital.
BlockFi plans to use the new funds to expand its team and launch new products.
The $4 million funding round follows a $52.5 million funding round back in June. Moving forward, BlockFi will continue to launch new products catered to crypto investors searching for alternative banking services.
One of the first BlockFi products scheduled to launch is its interest-earning crypto savings account, slated for launch in Q1 2019. The company is also planning to launch a portfolio line of credit and crypto-backed credit cards throughout the year.
Today, BlockFi already offers dollar-denominated loans against bitcoin, Ether, and Litecoin. Crypto users can use their cryptocurrency as collateral to take out a fiat currency loan. BlockFi is one of several major crypto lending platforms offering similar service to crypto users.
BlockFi made headlines earlier this summer for its enormous $52.5 million funding round back in July. That round was also led by Mike Novogratz’s Galaxy Digital. In February, BlockFi raised $1.55 million after announcing plans to “bridge the gap” between crypto markets and financial markets.
This isn’t the first time Galaxy Digital has made headlines this week. Earlier this week, Galaxy Digital led a $30 million Series A funding round investment in Good Money, a firm aiming to take over the financial system and use it for good. With Good Money, users own a stake in the platform. Good Money is currently in the early stages of development, although you can reserve your waitlist spot today at GoodMoney.com.