Mike Novogratz Spearheads $52M Investment in Cryptocurrency Lending Project
Mike Novogratz, dubbed The King Of Bitcoin, is leading a new fundraiser for a crypto-lending service called BlockFi. His company, Galaxy Digital, has spearheaded the funding round, gathering $52 million as of the 24th of July.
BlockFi is a startup based in NY and offers its clients, both industrial and retail, loans on cryptocurrency assets and consists of a loan book worth millions. Zac Prince, the former SVP of Cognical, founded BlockFi and has seen two fundraisers this year. It’s first round gathered around $1.5M from three companies, Consensys, SoFi, and Kenetic.
Its second fundraising is due to the company’s vision of growth throughout the US and eventually on a global scale, tapping into international markets all over the world and produce new products while aiming to list and back more digital currencies. Speaking to Business Insider, the founder explained that several promising opportunities lie in the set-income and debt investment industry, including credit lines and cards.
As part of its plan, BlockFi has recruited Rene van Kesteren, the former MD of the Bank of America. As of now, the company permits investing individuals to apply for loans of up to $250K by making collateral out of BTC and ETH from applicants. This new method ensures that investors will hold onto their digital currencies should another surge in their value occur while also receiving fiat currency to use as they please, whether it's handing out salaries or taking a trip abroad.
Mike Novogratz and his company, Galaxy Digital, make this investment their latest out of an unstoppable series of investments in several projects rapidly. Last month, the company poured $35M into High Fidelity, a VR company, as well as another $15M going to AlphaPoint, another NY-based project designing a tokenized asset platform.
As per previous reports, Galaxy Digital has dipped its business hands into several categories, including trade and investment as well as several key investments in cryptocurrency, although no official reports have been released. Several invested individuals have explained that Galaxy has bought stakes and shares in many ICO projects and boasts an impressive portfolio of newly emerging projects. The King of Bitcoin himself has gathered a whopping $250M from ETH and owns 10 percent of his fortune in cryptocurrencies.
Speaking about BlockFi, Novogratz stated that a key loan market is absolutely vital for financial projects and systems worldwide and that BlockFi’s expertise and its promising impact was the reason Galaxy signed up to collaborate with the startup.