BlockFi eyeing $50 million Series C following period of strong growth in institutional lending

Cryptocurrency lender BlockFi has been lining up investors for a Series C fundraise following a period of strong growth in the firm's institutional lending business, several people familiar with the deal tell The Block. 

The firm has grown its institutional and retail lending monthly revenues from around $45,000 in January 2019 to $2 million in March 2020, according to materials shared with The Block. Revenues from institutions makes up the overwhelming majority of its client revenues.

As for the new fundraise, the firm is looking to raise $50 million at a $400 million pre-money valuation, according to sources briefed. It follows a Series B earlier this year, which was led by Valar Ventures. Participants in the previous deal included Morgan Creek Digital, CMT Digital and Castle Island Ventures. 

Morgan Creek Digital is said to be leading the Series C, according to a source. 

Starting in the retail lending space, BlockFi has expanded its platform to span institutional lending and retail trading. Its retail trading product currently sees $2 million to $4 million in daily volumes, according to a person familiar with the firm's operations. The next business lines on its roadmap include credit cards and peer-to-peer payments. 

As it builds its business, the firm has made a series of notable hires, including a former American Express vice president, Wittney Rachlin. Rachlin was hired to spearhead the launch of a BlockFi bitcoin credit card. Earlier this month, the firm announced the hire of Jonathan Mayers as its general counsel. Mayers previously held top legal roles at financial services firms including Renaissance Technologies, Deutsche Bank, and Barclays. 

As The Block previously reported, the firm has also been looking to hire a chief financial officer to help the firm navigate a possible initial public offering in 2021.  

BlockFi declined to comment for this report.