North Texas-Based Blockhouse Digital Raises $2M To Launch Crypto Asset Management Firm

Blockhouse Digital said the funding will fuel the launch of its specialized financial products and services, which are designed to serve institutional investors, borrowers, and lenders.

Asset management firm Blockhouse Digital, which has an office in Frisco, has completed a $2 million seed funding round including investments from strategic partners such as its institutional OTC partner BlockFills along with significant contributions from various angel and VC investors.

Founded in 2023, Blockhouse specializes in collateralized lending and yield-generating strategies in the crypto markets.

Blockhouse Digital said the funding will fuel the launch of its specialized financial products and services, which are designed to serve institutional investors, borrowers, and lenders.

“There is a lack of available credit to crypto infrastructure providers and traders,” said Young Cho, CEO and Co-CIO of Blockhouse Digital. “At the same time, borrowing demand is growing, especially among Bitcoin miners as the Bitcoin halving approaches in Q2 2024, and miners prepare to increase CAPEX [Capital Expenditure] spending and take advantage of cheap ASIC prices.”

Cho has history of managing funds, underwriting loans, trading distressed debt, and operating startup companies. His background includes stints at Salomon Brothers Quantitative Research, Citigroup Special Situations Investment Group, UBS Private Finance, and in the crypto industry he’s held positions as CIO of Abra, CFO of Hedera, and CFO of AltLending.

The newly secured funds will be used to launch Blockhouse Digital’s technology infrastructure, expand its product offerings, and strengthen its market position as a leader in crypto asset management. The firm said that it is committed to leveraging its expertise to provide innovative solutions that generate sustainable returns for its clients while navigating the complexities of the digital asset landscape.

“OTC and principal trading firms are seeking credit facilities for capital to fill orders for their clients and provide market-making services to improve market liquidity,” said Randy Song, co-founder & chief business development officer of Blockhouse Digital, who is the former head of Global Institutional Sales for Abra. “Due to this imbalance of supply and demand in the crypto credit markets, we believe this is an opportune time to launch a fund focused on lending in the crypto space.”

Nick Hammer, CEO of BlockFills said the investment betters both companies.

“The strategic partnership between BlockFills and Blockhouse Digital truly utilizes the experience, expertise, and core competencies of both companies to enhance the product and service offerings for our collective institutional clients,” Hammer said.

The companies’ “joint efforts will allow us to add a substantial amount of liquidity and innovative credit products to better serve clients within our ecosystem as we see an unprecedented demand for credit,” he said. Hammer noted that Blockhouse will also leverage BlockFills’ “technological capabilities, liquidity, and connectivity for OTC trading to create a best-in-class trading experience for the fund and their client network”.

The company said it hosted a launch event for partners, investors, and VIPs in Bel Air in Los Angeles last month.  

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