The largest cryptocurrency exchange in the U.S. plans to use the funds raised for accelerating adoption of cryptocurrencies.
Coinbase Valued at $8 Billion
One of the oldest and largest cryptocurrency exchanges of the world, Coinbase, has in its latest funding round raised over $300 million and reached an overall value of $8 billion. The latest round takes the total raised from investors to $525 million, reported Forbes.
The announcement of the latest fundraising round was made by Asiff Hirji, president and COO, on the firm’s official blog. According to the post, the Series E equity round is led by Tiger Global Management, with participation from Y Combinator Continuity, Wellington Management, Andreessen Horowitz, Polychain, and others.
This makes the cryptocurrency firm one of the most valued companies in the United States. The firm was previously valued at $1.7 billion in August 2017, reported CNBC.
According to Forbes, “Coinbase is now valued higher than the workplace messaging app Slack (at $7.1 billion) and online grocery delivery company Instacart (at $7.6 billion).”
Coming at a time when the market has been bearish, the high valuation and new round of funding is a positive development for the cryptocurrency industry.
Utilization of funds for adoption
Elaborating on the firm’s future plans, Hirji wrote that Coinbase will use the funds to accelerate:
Global expansion–building the infrastructure between fiat and crypto in regulated markets around the world;
Offering more crypto assets, quickly — we see hundreds of cryptocurrencies that could be added to our platform today, and we will lay the groundwork to support thousands in the future;
Utility applications for crypto — like the recently announced support for a stablecoin (USDC) on Coinbase and our continued development of Coinbase Wallet; and
Bringing institutions into crypto — adding features and crypto assets to our Custody offering to bring more institutional funds into the space.
Hirji concluded:
Coinbase is, and will remain, a crypto-first company. We see Coinbase’s growth as validation that the ecosystem will only continue to grow in size, influence, and impact — ultimately ushering in a more open financial system for the world.
The company has recently taken multiple steps towards expansion including adding new assets, launching Coinbase Custody – an offering for institutional investors, setting up new offices around the globe, and partnering with Circle to support the USDC stable coin.
Coinbase Custody received regulatory approval from the New York Department of Financial Services earlier last week. The latest inflow of funds is likely to prepare Coinbase for its next phase of growth.
Do you agree that valuation of Coinbase at $8 billion and new funding round will raise the confidence of investors? Let us know in the comments below.
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