Block Earner Secures AU$8 Million in Series A Funding to Propel Expansion
Sydney-based digital asset financial services provider, Block Earner, has successfully secured AU$8 million in a Series A funding round, as announced on August 18. This funding round was primarily led by the Titan Fund from crypto-focused venture capital firm CMCC Global, with participation from Australia’s largest digital asset investment fund, King River Capital.
The fresh capital injection comes on the heels of Block Earner’s recent launch of Australia’s inaugural Bitcoin-backed home loan product, which has reportedly garnered AU$400 million in mortgage requests since its introduction. Block Earner intends to use the new funding to bolster its growth within Australia and initiate plans for global market expansion.
Charlie Karaboga, CEO and co-founder of Block Earner, expressed that the funding will allow the company to accelerate its rollout of innovative and user-friendly financial products throughout Australia and beyond. He highlighted the company’s focus on broadening access to regulated, blockchain-driven solutions, aiming to transition crypto from being merely speculative to a viable, mainstream financial asset.
Key Highlights of Block Earner’s Initiatives:
-
Bitcoin-Backed Home Loan Product: This innovative product allows borrowers to utilise their Bitcoin holdings as collateral for securing loans, enabling them to enter the housing market while still maintaining exposure to their digital assets.
- Expanded Product Offerings: The funding will also facilitate the introduction of additional services that enable users to leverage their digital assets within mainstream financial markets without needing to liquidate their holdings.
Block Earner’s total venture capital funding now stands at AU$15 million, after securing AU$7 million in a seed funding round in 2022.
Legal Victory Against ASIC
In addition to its funding success, Block Earner achieved a critical victory in its legal battle with the Australian Securities and Investments Commission (ASIC). In 2022, ASIC alleged that Block Earner’s ‘Earner’ product was offered without an Australian Financial Services License (AFSL), a requirement for such services. Although an initial ruling from the court confirmed ASIC’s claims, the Federal Court later overturned this decision in April 2023, determining that Block Earner was not required to hold an AFSL for the ‘Earner’ product.
This reversal not only cleared Block Earner of the allegations but also mandated ASIC to cover all legal costs incurred by Block Earner during the original case and the subsequent appeal.
In a further development, ASIC faced additional scrutiny when the Federal Court rebuked it for releasing a misleading press statement regarding the case, further entailing a financial penalty for the regulator.
With a robust funding framework and a favourable legal environment, Block Earner is poised strategically to lead the charge in Australia’s digital asset market, reinforcing its commitment to providing innovative financial solutions that leverage the potential of blockchain technology.
