Companies Of Novogratz And Pompliano Invest In Crypto Startup
The cryptocurrency bank Galaxy Digital, founded by a billionaire Mike Novogratz, invested in a project called BlockFi, Coindesk reports. The startup provides lending services, giving its customers corporate and retail loans in dollars for bitcoins, ethers, and Litecoin.
The project from New York attracted $4 mln in a recent investment round. This time, along with Novogratz’s bank, the fundraising was joined by Anthony Pompliano’s venture company Morgan Creek Digital and a trading firm Susquehanna, while Akuna Capital was the chief investor. The exact amounts received from each participant have not been announced.
According to the startup, it will use the proceeds to expand the team and launch new products. In particular, BlockFi will add cryptocurrency accounts for interest savings, as well as credit cards supported by digital currency. New offers are reportedly scheduled for the first quarter of 2019.
Dean Carlson, who is the head of digital investments at Susquehanna, said that lending will further develop in the digital assets industry, and BlockFi may take the leading position in this growing market.
In the last funding round, finished in July 2018, BlockFi managed to raise over $52 mln — mostly from Novogratz’s crypto bank. Further back, in February, the startup attracted more than $1.5 mln from ConsenSys, founded by the Ethereum developer Joseph Lubin.
Besides, in December, Galaxy Digital invested in an American crypto company Good Money, where each client receives personal capital with platform’s securities when opening an account.
Previously, Mike Novogratz’s bank reported a loss of $136 million.