Tether (USDT) invests $ 10 million in the Celsius Network (CEL) loan platform for an amount of $ 120 million before an economic valuation, resulting in a cash valuation of up to $ 150 million.
The company raised $ 30 million in its first share cycle. In 2018, Celsius completed its first $ 50 million release. Alex Machinsky, CEO of Celisius, told Quintelgrave that his company is continuing its policy of not raising money from investment capital.
Investors will not have voting rights
Machinsky also pointed out that shares sold during this round do not give voting rights. This ensures that investors cannot force the company to change the core issue of sharing 80% of the profits with the community. It is believed that this is what sets Celsius apart from its competitors:
“I think they [BlockFi] raised something like $ 20 million, $ 30 each, before [appreciating the money]. Therefore, they gave more than half. And now they are collecting another $ 30 [worth] $ 60 [before financial valuation]. Thus, the entrepreneurs have a very small percentage of the company, maybe 10% or less. Therefore, we deliberately prevented some of the investors from voting. That is why I am still the largest shareholder, so we have control over the company. It is very important to us, so investors do not want to change – we return 80% to society. I wanted to make sure no one came in and said, “Hey, you make a profit, so why don't you take it yourself or why not pay? profit?
Teter is not a toxic investor
Machinsky does not believe that Teether is a toxic investor. In his opinion, the market is the best solution, and since all claims made against the company, the market value of USDT has grown nine times:
“If you look at what was characterized when the lawsuits were brought and what it is, it has increased nine times, it was a billion dollars, and now it is $ 9 billion. If there is any concern about a lack of confidence in the bond, investors will not [invest]]. ”
Better than competition
Celsius CEO also says that as a dominant player, Teter chooses her company for strategic investment, and her competitors are important support:
“The most important thing is that Tether is $ 9 billion from a dollar. This is 90% of all stable currencies. That they chose Celsius is very important because they can obviously collaborate with anyone, they can choose BlockFi or Nexo, or anyone else. ”
When it comes to the question of why Celsius is raising money just two years after the ICO's success, he made it clear that an extra injection of capital is needed if the company wants to achieve its ambitious goals:
“First, you make money when you can, and not when you need it. It was important that we have many other strategic investors. Teter is not the only one, we have many partnerships. We want to see billion dollar assets and we want to get a billion gold, billions of bitcoins. These things require a lot of capital to develop a platform. ”
Machinsky also hinted that in the coming months Celsius will “gather all the services provided by Tether and Bitfinex.”
Cointelegraph contacted Tether for comment, but did not receive a response in time for publication.