Bitcoin and other major cryptocurrencies are languishing this year, but that is not preventing some investors from putting an impressive valuation on crypto exchange operator Coinbase.
In a statement released Tuesday San Francisco-based Coinbase said “we’re pleased to announce that Coinbase will add an additional $300 million of investment at a post-money valuation of over $8 billion to accelerate the adoption of cryptocurrencies and digital assets. The Series E equity round is led by Tiger Global Management, with participation from Y Combinator Continuity, Wellington Management, Andreessen Horowitz, Polychain and others.”
Earlier this month, it was reported that Coinbase is eyeing European expansion with plans to open an office in Dublin, Ireland as the potential for Brexit fallout looms. Nonetheless, the San Francisco start-up will retain its present office in London as its primary European headquarters.
Coinbase operates one of the largest digital currency exchanges. Earlier this year, some media outlets reported the company is also considering launching a bitcoin ETF.
Earlier this year, Coinbase launched the Coinbase Index Fund. The fund is available only to accredited investors defined as those with an annual income of $200,000 or a net worth of $1 million or more. The minimum investment is $10,000 and the fund has an annual management fee of 2%, according to Coinbase.
That fund, which is not an ETF, provides exposure to Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and Ethereum Classic.
Bitcoin Woes
This year, bitcoin and other digital currencies have been hammered. Bitcoin, the largest digital currency by market value, touched an all-time high around $20,000 10 months ago, but today resides just over $6,300.
Even with those sliding prices on individual cryptos, “Coinbase has plowed money back into a master plan to cater to institutional investors,” reports CNBC. “This year, it launched a suite of offerings for professional investors. One of them, Coinbase Custody, received regulatory approval last week from the New York Department of Financial Services.”
Coinbase said it plans to use the proceeds from the latest capital raising effort for global expansion, to add more crypto assets more rapidly and to bring more institutional investors into the crypto space, among other efforts.
For more information on the cryptocurrency market, visit the Bitcoin category.