Celsius raises $400 million amid mounting regulatory pressure
October 12, 2021, 9:04AM EDT
1 min read
Crypto lending firm Celsius Network has raised more than $400 million in a funding round led by growth equity firm WestCap, the company announced Tuesday.
The raise—which values the firm at $3 billion—has closed as state regulators across the US are scrutinizing the company's offerings. In September, New Jersey's securities regulator ordered crypto lending platform Celsius to halt offerings of its interest accounts in the state. Subsequently, regulators in Texas, Alabama and Kentucky launched inquiries or ordered similar halts.
That scrutiny hasn't appeared to halt Celsius growth, with the firm reporting more than $25 billion assets under its stewardship.
"We are pleased by the response we received from many leading financial investors during this fundraise. The partnership with WestCap and CDPQ puts Celsius in a position to grow and further its mission to leverage blockchain technology to connect and decentralize the traditional finance," commented Alex Mashinsky, CEO of Celsius Network.
With fresh capital in hand, Celsius plans to expand its team from 486 employees to more than 1,000, according to a release. It also plans to make "strategic acquisitions."
Adidas Originals, a brand of the German sportswear clothing firm Adidas, announced a partnership with the crypto exchange Coinbase in a Wednesday tweet. Details about the partnership are scant, however.