Cryptocurrency lender Celsius Network has extended its $ 400 million Series B cycle from October to $ 750 million due to an oversubscription in the company’s capital increase.
The company is now valued at $ 3.5 billion as a result of the increase and CEO Alex Mashinsky told Cointelegraph he expects that figure to “double or triple” next year, making him would see valued between 7 and 10.5 billion dollars.
The company previously closed the cycle on October 12 amid a period of scrutiny of cryptocurrency lending companies by local regulators. Celsius CEO Alex Mashinsky pointed out at the time that “it’s not $ 400 million. It’s the credibility that comes with the people who wrote those checks.
In an announcement shared with Cointelegraph on November 25, Celsius pointed out that new funds will be spent expanding into new markets and product offerings, as well as building its recent announcement Transition project between centralized finance (CeFi) and decentralized finance (DeFi) “CelsiusX”.
Celsius will also allocate funds to improve the “usefulness of its platform” and its commitment to sustainable Bitcoin mining (BTC).
Speaking on the $ 750 million funding round 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 was focused on the user.
“If you think about what we do, which is community pay return, you know we’ve paid over $ 1 billion to our community and we’re basically getting that return from trading and institutions. And most of our competitors […] they charge customers a fee and give all that money to their shareholders, ”he said.
Celsius describe earlier this week plans to invest an additional $ 300 million in expanding its BTC mining operations in North America, bringing its total spending in the sector to $ 500 million.
Mashinsky attributed his bullish estimate of the value of Celsius in 2022 to the company’s ability to provide services in almost all areas of crypto, noting the growth potential of the company:
“I think on its own it’s worth several times what we invested. So between that and growing our core business, you know, the yield business, the lending business or the mining business, the DeFi business, all of those things are obviously huge.
The CEO of Celsius also highlighted the $ 115 million acquisition of the crypto-custodial platform GK8 at start of this month, and revealed that the company plans to enter the NFT business in the near future, although it will not launch a market because it believes that there are already too many similar platforms.
“We think we can help brands expand the category to other use cases or other ways, you know, to unlock value,” he said.
Related: Crypto lending companies in the hot seat: new regulations coming?
Asked about the company’s $ 20 million crowdfunding round of August 2020, in which more than 1,000 investors from the Celsius community have supported the company. Mashinsky said the company was valued at around $ 150 million at the time, and although investors are currently unable to sell their holdings, it has turned out to be a nice investment for them:
“Basically those 1000 people made on average, what is it, 25 times their money or something like that?” Obviously it’s not liquid, they can’t sell it tomorrow. But we think they’re super happy.