The cryptocurrency loan company Celsius Network expanded its Series B round from $ 400 million in October to $ 750 million due to the oversubscription of the company’s fundraising.
The company is now valued at $ 3.5 billion after fundraiser and CEO Alex Mashinsky told Cointelegraph he expects that number to “double or triple” over the next year.which would mean a value between $ 7,000 and $ 10,500 million.
The company previously closed the round on Oct. 12 amid a period of intense scrutiny of cryptocurrency lending companies by local regulators. Celsius CEO Alex Mashinsky emphasized at the time: “It’s not $ 400 million. It’s the credibility that comes with the people who wrote these checks.”
In a notice communicated to Cointelegraph on Nov. 25, Celsius said the new funds will be used to expand into new markets and product offerings, along with the construction of its recently announced bridge project from centralized finance (CeFi) to decentralized finance (DeFi) “CelsiusX”.
Celsius will also provide funding to enhance the “usefulness of its platform” and its commitment to sustainable Bitcoin (BTC) mining.
Regarding the $ 750 million round of funding with Cointelegraph, Mashinsky said: The fact that the round was oversubscribed shows a “very good indication” of the strength of the Celsius brand, which he said is user-centered.
“If you think about what we do, which is paying the community for performance, well, We pay over $ 1 billion to our community and essentially get that return from exchanges and institutions. And most of our competitors […] They charge their customers fees and give all that money to their shareholders, “he said.
Celsisus announced earlier this week that it would invest an additional $ 300 million in expanding its BTC mining operations in North America., which will bring their total spending in this sector to $ 500 million.
Mashinsky attributed his bullish estimate of the value of Celsius in 2022 to the company’s ability to serve almost all cryptocurrency sectors.as it highlighted the company’s growth potential:
“I think that what we have invested is worth it several times over. Between that and growing our core business, you know, the yield business, the lending business or the mining business, the DeFi business, all of these things are obviously huge. ”?? ??
Celsius CEO also pointed out and revealed the $ 115 million acquisition of cryptocurrency custody platform GK8 earlier this month The company plans to enter the NFT sector in the near future but will not enter a market for it as it believes there are already too many similar platforms out there.
“We believe we can help brands expand the category in other use cases or in other ways to unlock value.” called.
When asked about the company’s $ 20 million crowdfunding round in August 2020, which saw more than 1,000 investors from the Celsius community backing the company, Mashinsky said: The company was valued at around $ 150 million at the time, and while investors are currently unable to sell their holdings, it has turned out to be a very profitable investment for them:
“Basically, those 1,000 people made on average, how much is that, 25 times their money or something? Obviously it’s not liquid, you can’t sell it tomorrow. But we think they are super happy.â ????