In the single largest venture-capital fundraising by a Bitcoin-related startup to date, digital currency exchange Coinbase today closed a giant $100 million investment from several investors including a US-based VC firm that previously invested in Dropbox, Netflix, Twitter, Slack and Snap.
In a statement, Coinbase said funding for this round was led by IVP, the venture capital firm that invested in more than 300 companies, including more than 100 that have gone public. Also participating were new investors including Spark Capital, Greylock Partners, Battery Ventures, Section 32 and Draper Associates.
The funding will help Coinbase expand its services to international markets and pay for regulatory costs. It also makes the Bitcoin platform the most well-capitalized cryptocurrency company, with more than $200 million in total funding and a post-money valuation of $1.6 billion, nearly triple their rumored valuation in 2015.
This round also makes Coinbase part of what is called a ‘unicorn’ club in the venture capital industry – a company with a valuation greater than $1 billion. It previously raised $117 million over five rounds from a number of high-profile investors including the New York Stock Exchange, USAA Bank, and Spanish banking group BBVA.
The announcement comes as the Bitcoin ecosystem faces interesting times amid a year-long rebound in its value. The price of one bitcoin rose to more than $3457 at the time of writing. In the prior 6 months, Bitcoin exploded from a little more than $1000 per unit to just a shy of the $3,500 threshold as speculators pounced in the strongest bull rush since 2013.
The five-year-old startup’s activity is said to have reflected the overall cryptocurrency market, with Coinbase achieving record trading volumes, to the point where it crashed two months ago because it couldn’t handle the surge.
Aside from processing Bitcoin payments, Coinbase, which was founded in 2012, also provides wallet services for holders of the digital currency.
(Photo: Coinbase)
