According to reports, the crypto lender is just days away from finalising a $500 million Series E. Among investors, a schedule for a public offering is circulating. According to documents issued to investors on Wednesday, BlockFi plans to go public in 12 to 18 months, despite increased regulatory scrutiny of the cryptocurrency lender.
The corporation, which is based in New Jersey, declined to comment on its present plans.
According to the filings, BlockFi will close its Series E on July 27. People familiar with the situation told CoinDesk that the financing is worth $500 million, as previously reported by The Block. BlockFi is anticipated to fetch a $4.75 billion post-money valuation, according to investor documents reviewed by CoinDesk.
BlockFi has been hinting at its plan to go public for over a year, with the second half of 2021 being the most recent target. Even before securities regulators in Texas, Alabama, and New Jersey placed BlockFi on notice, that timeline appears to have been pushed back.
A BlockFi stock listing would be the latest in a string of high-profile crypto public-market debuts, which began with Coinbase in April and have since been followed by everyone from Circle to Block. One is a bull.
BlockFi is still in the early stages of development. According to the filings, Hedosophia and Daniel Loeb’s Third Point LLC are leading the Series E. Also taking part are Coinbase Ventures, Tiger Global, and Bain Capital. The Information originally reported on the round in June.
The way forward
State securities regulators in the United States began challenging the validity of BlockFi’s marquee BlockFi Interest Account (BIA) offering this week, complicating the company’s path to Wall Street.
According to the Texas State Securities Board, that product, which promises to reward crypto depositors with hefty interest distributions, had gathered over $15 billion in assets by March 31. The Texas agency stated in its lawsuit that it notified BlockFi of suspected infractions on April 20, 2021.
Texas, Alabama, and New Jersey regulators have all claimed that BIA is an unregistered security, in violation of their respective state laws. BlockFi has until July 29 to respond to New Jersey’s request. If the two parties are unable to reach an agreement, the state may suspend BIA account onboarding.
BlockFi’s CEO, Zac Prince, said on Wednesday that the company is in talks with the state of New Jersey. “We have active talks with regulators worldwide,” his firm tweeted after Alabama issued its own directive. BlockFi tweeted after CoinDesk reported on the Texas lawsuit, “we firmly think that the BIA is lawful,” without mentioning the Lone Star State regulators.