Celsius Expands Funding Round to $750 Million

Celsius Network, the crypto lending firm, had to expand its Series B funding round in October from $400 million to $750 million because the capital raise of the company was oversubscribed. After the capital raise, the company’s valuation has now reached $3.5 billion and Alex Mashinsky, the chief executive of the company elaborated that he is expecting this amount to ‘double or triple’ in the coming year. This would see the value of the company reach the height of $7 billion to $10.5 billion. Previously, the funding round had been closed on October 12th as local regulators had begun an intense scrutiny of crypto lending companies.

At that time, the company’s CEO had said that it wasn’t the $400 million that was important, but the credibility of the people who were writing those checks. On Wednesday, Celsius made an announcement in which it outlined that all new funds would be used for expanding the company into new markets as well as introducing new product offerings. The company also revealed that it would use the funds for developing the centralized finance-to-decentralized finance (defi) bridging project that it had announced recently by the name of CelsiusX. According to the company, funds will be allocated for building the utility of this platform and for its commitment to ensuring Bitcoin (BTC) mining in a sustainable way.

Speaking about the $750 million funding round, Mashinsky said that it was a very ‘good indication’ that the funding round had been oversubscribed. He added that it highlighted the strength of the Celsius brand and he believes this is rather underfocused. He said that taking into account what the company does i.e. pay yield to the crypto community and that they have made more than $1 billion to the community. He said that they basically get the yield from institutions and exchanges, whereas their competitors charge fee from their clients and give all the money they receive to the shareholders.

Earlier this week, Celsius had outlined plans of investing a further $300 million into scaling its North American Bitcoin mining operations, which would bring their total spending on the mining sector to about $500 billion. Mashinsky said that his estimate of the company’s value in 2022 was bullish because he was aware of Celsius’s ability of providing their services in almost every sector of the crypto space. This also highlighted the growth potential of the company. He also mentioned the acquisition of GK8, the crypto custody platform, worth $115 million that it had made at the beginning of the month. 

The CEO also disclosed that they were planning on entering the non-fungible token (NFT) center in the feature, but did say that they didn’t have any plans of launching a marketplace because there were already too many similar ones that exist. He stated that they could assist existing brands in expanding the category and unlock value in other ways. Talking about the company’s crowdfunding round in August 2020, he said that those investors weren’t able to sell their holdings, but this investment was a handsome one for them.