Coinbase is a Unicorn – Hits Billion-Dollar Valuation

Investing, News | August 11, 2017 By:

San Francisco-based Coinbase has raised an additional $100 million in Series D funding. That puts its valuation at $1.6 billion, making it the first cryptocurrency company to achieve the so-called “unicorn” status, awarded for companies valued at over one billion.

“Digital currencies are having their ‘Netscape’ moment,” wrote Brian Armstrong, CEO of Coinbase. “The pace of innovation has been accelerating and we are now seeing exciting projects and companies being built on top of digital currencies. We’re beginning to transition into phase three of our secret master plan.”

IVP led the current round of funding, which will be used to open a GDAX office in New York and expand staff. GDAX is an exchange for institutional and professional investors, as opposed to Coinbase’s retail customers.

The funding level has been anticipated since June, when the Wall Street Journal reported that Coinbase was approaching unicorn status. But Coinbase has lately been in the news for other reasons, most of them bad.

The exchange most recently angered its customer base by initially refusing to support Bitcoin Cash, and urging those who might want to get the free bitcoins being offered at its birth to move their money to outside wallets. But delays in the transfer process angered its base, and the company quickly reversed its decision. It will now offer support for Bitcoin Cash by 2018, although allowing trading in it remains to be decided.

Coinbase has suffered several outages on heavy trading days, further roiling the active customer base that couldn’t make a market move.