Lava Secures $200M, Launches Bitcoin Line of Credit (BLOC) with Competitive 5% Rates

Lava, a leading global platform for Bitcoin-backed loans, has announced a substantial $200 million funding round combined with the launch of its new flagship product: the Bitcoin Line of Credit (BLOC).

Capital Injection and Investor Confidence

The $200 million raise, which includes both venture capital and debt financing, introduced two key new investors: renowned entrepreneur Anthony Pompliano and public markets activist investor Eric Jackson of EMJ Capital.

Jackson praised Lava's innovation, noting that their revolving line of credit is an industry first and that the company has secured the lowest borrowing rates for users.

Introducing the Bitcoin Line of Credit (BLOC)

The new capital allows Lava to offer highly competitive borrowing terms, making the BLOC a flexible and cost-effective option for Bitcoin holders:

• Competitive Rates: Interest rates start at a fixed 5% for one-year terms. This rate is updated annually, allowing users to refinance at the new prevailing rate.
• Revolving Credit: Unlike traditional term loans, the BLOC functions as a revolving credit account. Users can borrow, repay, and borrow again as needed, with interest only applied to the actual amount used, not the total credit limit.
• Total Cost: In addition to the 5% interest, the product includes a 2% capital fee assessed on the highest loan balance reached during the year. This brings the total approximate annual cost to 7%.
• Loan Access: Users can borrow up to 50% of the total USD value of their Bitcoin collateral deposited in the Lava app.
• User Experience: CEO Shehzan Maredia highlighted that this was their most requested product, offering instant dollars without the worry of fixed monthly payments or loan durations.

Lava also prioritizes user protection, featuring a "liquidation protection" mechanism that automatically adds a portion of the user's deposited Bitcoin as collateral to safeguard against liquidation during periods of high BTC price volatility. Most lending features are available without requiring personal information.

November 2025, Cryptoniteuae