Crypto Exchange Coinbase Now Valued At $8B USD After Raising $300M Led By Tiger Globalbr>
Crypto exchange Coinbase has raised $300 million in a Series E equity round led by UK hedge fund Tiger Global Management. The round also saw participation from Y Combinator Continuity, Wellington Management, Andreessen Horowitz, Polychain and others.
The equity round gives the company a “post-money valuation of over $8 billion,” making it one of the most highly valued tech startups in the US. Coinbase said it will use the financing to build the infrastructure between fiat and crypto in regulated markets around the world and offer more crypto assets.
“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,” Coinbase President & COO Asiff Hirji said in a blog post.
The company also plans to add new features and crypto assets to its custody offering and utility applications for crypto, like its recently launched support for Circle’s USDC stablecoin and the Coinbase Wallet.
“Coinbase is, and will remain, a crypto-first company,” Hirji said. “More than anything, we’re proud of the millions of people that have turned to Coinbase as their entry-point into crypto. We take that responsibility very seriously. We strive to be the easy, trusted way for anyone to get started with cryptocurrencies. 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.”
In an interview with Bloomberg, Hirji said that Coinbase did not need the funding but pursued it for “opportunistic” reasons.
“The companies interested in investing in us know that this is the next wave of tech innovation,” Hirji said. “This was an opportunistic round. We didn’t have to go out and raise capital. For this round, we simply weren’t interested in taking investments from firms that didn’t have a constructive view of crypto. This round, and the future of crypto in general, needs to be about more than asset prices.”
Rumors of the $8 billion valuation were first reported by Recode earlier this month. At the time, sources told Recode that Tiger Global Management was considering a $500 million investment in Coinbase, with at least half of those funds being used to buy out existing investors.