Blockhouse Digital, an asset management firm focused on collateralized lending and yield-generating strategies within the cryptocurrency markets, has announced the successful closure of its $2 million seed GP funding round.
This financial milestone was achieved with contributions from strategic partners, notably including its institutional OTC partner BlockFills, alongside various angel and venture capital investors.
This infusion of capital is earmarked for the introduction of Blockhouse Digital’s bespoke financial products and services, aimed at meeting the needs of institutional investors, borrowers, and lenders, per the announcement.
The firm identifies a critical gap in the availability of credit to crypto infrastructure providers and traders, a situation highlighted by CEO & Co-CIO Young Cho, a veteran with a distinguished background including roles as CIO of Abra, CFO of Hedera, and CFO of AltLending.
Cho points to the growing borrowing demand, especially from Bitcoin miners in anticipation of the Bitcoin halving in Q2 2024, as they gear up to escalate capital expenditure and capitalize on favorable ASIC pricing.
Randy Song, Co-Founder & Chief Business Development Officer of Blockhouse Digital and former Head of Global Institutional Sales at Abra, underscored the increasing demand for credit facilities by OTC and principal trading firms to enhance order fulfillment and market-making services, thereby improving market liquidity.
Nick Hammer, CEO of BlockFills, emphasized the strategic synergy between BlockFills and Blockhouse Digital, noting that the collaboration leverages both companies’ strengths to augment their institutional client offerings, particularly in credit products and liquidity enhancement.
Blockhouse Digital boasts a leadership team comprising industry experts with deep roots in both traditional finance and the crypto sector, having held positions at leading institutions such as Citigroup, UBS, Morgan Stanley, AQR Capital, Hedera, Abra, Talos, Oaktree Capital, and JPMorgan.
The team’s investment philosophy is underpinned by a rigorous commitment to risk management and regulatory compliance, ensuring client security and transparency.
The firm welcomes new additions to its executive team, including Anthony Merriman as Co-CIO, Darren Yarwood as Head of Operations, and Tyler Adkison as Director of Business Development.
With the seed funding now secured, Blockhouse Digital is set to deploy its technology infrastructure, broaden its product suite. The company said it remains dedicated to leveraging its comprehensive expertise to deliver innovative, sustainable return-generating solutions for its clients amidst the evolving digital asset landscape.