|Key People||Matthew Goetz and Ari Paul, co-founders|
|Products||Digital currency investment funds|
BlockTower Capital was formed by a Goldman Sachs alumnus, Matthew Goetz, and a former University of Chicago endowments risk manager, Ari Paul, to invest in digital currencies. The company launched in August 2017 and raised $140 million, including venture capital investments from Union Square Ventures and Andreessen Horowitz.
In September 2018, Bloomberg reported that not only was BlockTower weathering the decline in cryptocurrency prices but that the company had expanded its number of employees and opened a second office in New York City.
In March 2021, Bloomberg reported that Marc Lasry - billionaire hedge fund manager and owner of the Milwaukee Bucks basketball team - and J. Christopher Giancarlo, former chairman of the CFTC - invested undisclosed amounts of money in BlockTower Capital.
Million Dollar Bet
In mid December 2017, 275 bitcoin calls were bought on LedgerX, a swaps execution facility (SEF). The calls had a strike price of $50,000 and were to expire more than a year later, at the end of December 2018. This transaction was effectively a bet that bitcoin would more than triple in a year, since the price of bitcoin was then about $16,500. The total price paid for the 275 calls was just under $1 million.
A few days later the identity of the option buyer emerged: BlockTower Capital.
- Cryptocurrency Hedge Fund BlockTower Raises $140 Million. Bloomberg.
- Goldman Sachs Alum's Crypto Fund Expands Even as Markets Tumble. Bloomberg.
- Marc Lasry, Chris Giancarlo Invest in Crypto Firm BlockTower. Bloomberg.
- Billionaire Lasry, Ex-CFTC Head Giancarlo Invest in Crypto Firm BlockTower. Coindesk.
- A Million-Dollar Bet That Bitcoin Will Hit $50,000. Wall Street Journal.
- We now know who was behind the $1 million bet that bitcoin will soar to $50,000. Business Insider.