Celsius Network raised $400M, increasing its valuation 2,542% on the year to $3.25B, as it faces US regulatory headwinds.

Alex Mashinsky stated, “We feel that everything we do is fully compliant.”

Alex Mashinsky also expressed, “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.”

This investment round was led by WestCap, whch is a New York-based growth equity firm, and Caisse de dépôt et placement du Québec, a Canada-based global investment group.

Celsius stated that the latest cash injection will be used to expand its offerings and products, double their 486-person team and also to increase their presence through strategic acquisitions.

This fundraising is happening following US regulators hardening their stance versus cryptocurrency firms that are offering interest bearing products.

Notably, Texas recently filed for hearing at a cease and desist order versus Celsius for providing unlicensed securities. Further New Jersey also order the company to stop offering unregistered interest bearing investments Alabama, ordered Celsius to provide details on how they are not violating the securities law of the state. Further Kentucky also issued a cease and desist order on the earn interest accounts from Celsius.  All of these happened on the same day.

Celsius eventually maintained that they have complied with all laws.

For clarity, this fundraising also marks the first time CDPQ has invested a cryptocurrency-based company. For context, CDPQ has about $400B in net assets across FinTech companies, but the Celsius Network investment will help diversify the firm’s assets, its CTO and executive VP said.

Community Response:  Issue is no matter how compliant someone is, if the government thinks you are a risk to their FIAT system they will try to make it hard for you.

Go Mashinsky, Bullish.  I assume it was a tough sale given the regulatory noise until they looked under the hood and validated the business model is solid.

Congratulations this is the huge game changing news we have been waiting for! $400 million is huge. Imagine what that money can do to on board the next 100 MIO Celsians.

The firm intends to use the proceeds from the investment to continue expanding its offering, focusing on institutional-grade products.

There are so many huge newsworthy things coming to Celsius. Swaps, investors, onboarding and lot more. Celsians towards making history.

Hopefully, the fundraise will reassure regulators regarding the stability of the crypto lending business and help open doors in the mainstream financial markets.