$400M Raised by Crypto Lender Celsius Network
- The CEO of Celsius Network said the funding round was not about the $400 million, but about the “credibility that comes with the people who wrote those cheques”.
- The investment will help the crypto lender continue its product development, launch new institutional grade products, and double the size of its team.
Shutterstock
Cryptocurrency lender Celsius Network has secured $400 million through a new equity funding round, which increased the company’s valuation to around $3 billion, Celsius said in a press release on 12 October.
According to the announcement, the investment was led by Caisse de dépôt et placement du Québec (CDPQ), one of Canada largest pension funds, and growth equity firm WestCap. The CEO of Celsius Network, Alex Mashinsky, told the Financial Times that the funding round was less about the investment, and more about the “credibility that comes with the people who wrote those cheques”, expressing his hope that regulators will be reassured about the stability of the lending company. Mashinsky also said in a statement:
“We are pleased by the response we received from many leading financial investors during this fundraise. The partnership with WestCap and CDPQ puts Celsius in a position to grow and further its mission to leverage blockchain technology to connect and decentralize the traditional finance.”
The newly acquired funds will help Celsius Network continue to expand its products — which includes the development of new institutional grade products and offerings — as well as expand globally through strategic acquisitions. In addition, the company also plans to increase the size of its team from the current 486 employees, to nearly 1,000 globally.
Founded in 2017, the Celsius Network has become one of the largest crypto lending platforms on the market, having more than $25 billion in assets. The company also claims to have paid out around $850 million in interest to the more than 1 million registered customers on the platform through its Earn product.
While the company initially operated from the U.K., in June it revealed it will be moving its headquarters to the United States. Since then, regulators from several states in the U.S. — including Texas, New Jersey, Kentucky, and Alabama — have proceeded with issuing warnings to the company, claiming it had violated local securities laws.
- An investigation from the New York Attorney General’s office has allegedly found that Gemini was aware of Genesis’ weak financial position, but still lied to investors.
- The lawsuit is looking to ban DCG, Genesis, and Gemini from the New York financial industry, seek restitutions for investments, and the return of “ill-gotten gains”.
Shutterstock
- The bankrupt crypto lender said that if its reorganization plan is approved, it is ready to start repaying its customers using $2 billion in BTC and ETH by the end of the year.
- If given the green light, Celsius will restart its business under the “NewCo” brand without any funded debt, and with seed funding of up to $450 million.
- Bankrupt crypto lender Genesis is trying to recover around $500 million from DCG, and another 4,550.5 BTC from DCGI, which it had loaned to the two companies in 2022.
- Both DCG and DCGI requested that the debts were converted to open loans on 9 May, but Genesis declined both offers and demanded the repayment of the loans with interest.