BlockFi to hire new CFO, plans to go public in the second half of 2021

The cryptocurrency lending institution BlockFi is planning to acquire a seasoned corporate finance professional with experience in financial and public markets to oversee and arrange the financial team for its upcoming IPO plan. BlockFi CEO Zac Prince also revealed to blockchain media outlet The Block that the company could potentially go public as early as the second half of 2021.

BlockFi Prepares for IPO

BlockFi, based in New York, is a fintech startup that provides cryptocurrency lending services. Compared to other platforms, BlockFi's services are closest to traditional financial products and hold an irreplaceable position in the eyes of institutional investors. Additionally, the platform is backed by several institutions such as Fidelity, Galaxy Digital, and Coinbase Ventures. In an article released this month, BlockFi emphasized the company's recent business performance continues to improve steadily:

"(We) expect to generate $50 million in revenue in the next 12 months... Revenue has quadrupled since December 19th, doubling from the beginning to the end of the second quarter."

According to the latest job posting from BlockFi, the company is seeking a CFO with over 15 years of experience in corporate finance and a background in financial and public markets to oversee the company's long-term financial planning, strategic corporate finance, financial operations, international expansion, and notably, the new CFO's responsibilities include "guiding and arranging the company's IPO plans."

BlockFi CEO Zac Prince told blockchain media outlet The Block revealed that the company could potentially go public as early as the second half of 2021. On the other hand, sources further informed The Block that the company is currently in discussions with potential investors for a new round of financing.

Interestingly, BlockFi is not the only cryptocurrency service provider rumored to be going public recently. According to a report from Reuters last night, three sources revealed to Reuters that U.S. cryptocurrency exchange Coinbase is preparing for a stock market listing and could submit its application to the SEC as early as the end of this year.

Key Events for BlockFi This Year

Both in terms of business and company valuation, BlockFi has maintained steady growth. In February this year, BlockFi raised $30 million in a Series B funding round led by Valar Ventures under Silicon Valley investor Peter Thiel. Other supporters include Morgan Creek Digital, Arrington XRP Capital, and Castle Island Ventures. Indeed, if the company wants to realize its vision of a cryptocurrency bank, offering services from trading to lending to high-yield savings, it will need significant funding to provide liquidity. An IPO is inevitably the path to achieve this goal.

Despite BlockFi's current level of success, like many young startups, the company has faced challenges.

According to previous reports, BlockFi experienced a data breach incident in May this year, stemming from a "SIM card swap attack" on an internal employee's phone numbers by a third party, which led to the exposure of user information including names, email addresses, birth dates, postal addresses, and historical activity records of retail customers. Fortunately, user funds, passwords, social security numbers, and tax identification numbers were not affected.