Celsius recently had to increase its funding round from $400 million to $750 million due to oversubscription within its recent capital raise. It’s a great problem to have, and I’m sure the extra funding was very much welcomed by Celsius.

Since the raise, Celsius’ valuation has jumped up to approximately $3.5 billion, and CEO Alex Mashinsky has stated that he expects that valuation may still double or even triple in the next year, reaching a value between $7b and $10.5b.

$750 million is a hell of a lot of money to raise as a Crypto lending firm while the market is concurrently experiencing a wave of intense scrutiny on such firms from local regulators. Mashinsky however emphasised that it’s not about the monetary value of the raise, but rather the credibility of the individuals behind that money.

So, what’s Celsius going to use that 3 quarters of a billion dollars for?

Well Celsius has stated in an announcement that new funds will be put towards expanding into new markets as well as new product offerings, and it will also help to continue building its centralised finance-to-decentralised finance bridging project “CelsiusX”.

Further to this, it will be allocating funds towards improving its platform’s utility and will further its commitment to ensure Bitcoin mining remains sustainable.

Mashinsky seems more than please with the funding round, stating that the oversubscription is a sign that the Celsius brand is strong in the market. He went on to say:

“If you think of what we do, which is pay yield to the community, you know, we paid over $1 billion to our community, and we basically get that yield from exchanges and institutions. And most of our competitors […] they charge the customers fees and give all that money to their shareholders”

I’m glad that Celsius is getting the attention they deserve, I’ve been following them more intently since their raise in August 2020, and to see them hold such a strong position in the markets while caring about their consumer is a positive sign for the crypto community.

Keep going strong, Celsius. I look forward to seeing you put this money to good use!