The centralized cryptocurrency lending platform Celsius Network has announced the attraction of $400 million of investments. As a result, the company’s market valuation exceeded $3 billion.
Thus, the round was led by investment company WestCap and Canada’s second-largest pension fund Caisse de dépôt et Placement du Québec (CDPQ).
According to the press release, Celsius will use the funds raised to expand the product line. As well as “to build bridges between traditional finance and cryptocurrencies”.
Increasing the team
Part of the funding will be allocated by the platform to increase the team from 489 employees to almost 1,000. Moreover, to ensure global growth through strategic acquisitions. As of October 8, 2021, the company’s assets under management exceeded $25 billion. With more than 1 million customers registered on the platform, Celsius reported.
The funding round took place against the background of accusations against the platform in the United States of selling unregistered securities. Claims against the company arose from the regulators of the states of Texas, New Jersey, Alabama and Kentucky.
CEO of Celsius Network Alex Mashinsky expressed hope that the investment will convince regulators of the stability of the platform’s business and “help open doors to the main financial markets”.
Direction of a regulated industry
According to WestCap founder Laurence A. Tosi, Celsius strives to cooperate constructively with supervisory agencies.
“As digital assets become more widespread, we intend to use the right opportunities, moving with our partners in the direction of a regulated industry,” said Alexandre Synnett, executive vice president of CDPQ.
Recall that in July 2020, Celsius raised $18.8 million, and then during a crowdfunding campaign raised $ 20.2 million. In June 2021, the platform invested more than $200 million in bitcoin mining in the United States. Through a compounding yield service and instant low-cost loans accessible via a web and mobile app, Celsius assists hundreds of thousands of consumers worldwide in achieving financial independence.