BlockFi in talks to raise funding at a $5 billion valuation

BlockFi, a crypto-lending platform, is in talks with investors to raise funds at a valuation around $5 billion. The Information reports, citing sources familiar with the discussions.

The Series E financing round will be led by Dan Loeb’s hedge fund Third Point and London’s venture firm Hedosophia. New and existing investors in BlockFi will also participate in the deal.

A source for the publication noted that the funding round is not yet closed, so the valuation could rise. According to The Block, the platform is preparing to raise $500 million at a pre-money valuation of $4.75 billion.

In March, Loeb wrote that he has been studying cryptocurrencies of late. The investor described it as “a real test of being intellectually open to new and controversial ideas.”

I’ve been doing a deep dive into crypto lately. It is a real test of being intellectually open to new and controversial ideas. Culturally I compare bridging the crypto world with the old as akin to finding a portal @chbetween two distinct worlds in the multiverse. https://t.co/LqWwfIxOyd

— Daniel S. Loeb (@DanielSLoeb1) March 1, 2021

One of the publication’s sources told The Information that since the listing of Coinbase on Nasdaq some investors have pressed to raise their stake in BlockFi’s equity.

In May, the company’s executives reportedly discussed raising funds at a $6 billion valuation. However, in light of the decline in Coinbase’s stock price, they had to scale back expectations.

In March, BlockFi closed a Series D financing round of $350 million at a $3 billion valuation.

In May, the platform accidentally credited large amounts of Bitcoin to customer accounts and asked for the return of the cryptocurrency. One user allegedly received more than 700 BTC.