Celsius Network raises $400 million in funding round led by WestCap

Celsius Network raises $400 million in funding round led by WestCap

Celsius Network – a leading cryptocurrency lending platform – recently received a $400 million investment from public company WestCap and investment group Caisse de dépôt et placement du Québec (CDPQ). This means Celsius is now valued at over $3 billion.

New means for Celsius

How specified In a press release, the company's new revenue will be used to expand its product offerings and further connect crypto with traditional finance.

It will specifically focus on developing products suitable for large institutions that have unprecedented interest in this area. For example, a recent analysis by JP Morgan states that institutions prefer Bitcoin over gold as inflation protection.

Another portion of Celcius' funding will be used to expand the team to double its current capacity from 486 to nearly 1,000 employees. From an adoption perspective, the lender has already seen significant growth, with 1 million registered customers now. It paid out over $850 million in interest to these users over three years.

Alex Mashinsky – CEO of Celsius Network – believes the latest investment will help his company revolutionize the financial industry:

"We are pleased with the response we received from many leading financial investors during this fundraising campaign. The partnership with WestCap and CDPQ enables Celsius to grow and advance its mission of using blockchain technology to connect and decentralize traditional finance."

Celsius Regulatory Compliance

Laurence Tosi – Founder and Managing Partner at WestCap – believes Mashinsky and Celsius have the right consumer protection framework and approach to comply with regulators.

“Celsius is committed to working constructively with regulators to better understand the dynamic crypto space, protect retail customers from fraud and undue risks, and create common consumer knowledge to enable thoughtful investment decisions.”

Tosi's comments are a breath of fresh air for Celsius, which has received backlash from regulators. Both Texas and New Jersey recently targeted Celsius for Offer unlicensed “securities” to its customers. While Mashinksy denied the allegations, he said he remained committed to cooperating with regulators.

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