Matrixport, a crypto assets financial services startup launched by Bitmain Technologies co-founder Wu Jihan, plans to raise $40 million in a funding round that would value it at $300 million, people familiar with the matter told Bloomberg.
Matrixport Aims to Triple Valuation
Crypto-oriented Matrixport is seeking to raise $40 million, according to sources that asked not to be named. The startup recorded between $7 million and $8 million in revenue last year and anticipates that the figure would more than double by the end of 2020. This information was presented in a slide deck sent to investors and seen by Bloomberg. According to the deck, Matrixport saw a valuation of $114 million in a previous funding round.
The Singapore-based startup backed by Bitmain is working to expand its crypto financial services for professional crypto investors and traders. The company was split from Bitmain in 2019 as the world’s largest creator of Bitcoin mining equipment was struggling with its finances while seeking to go public.
Matrixport offers cryptocurrency custody, trade, loan, payment products and services to institutional clients, including mining equipment manufacturers, crypto lending platforms, mining pools, crypto exchanges, and crypto funds, among others. Its competitors are American firms Genesis Global and BitGo. Besides Bitmain, the company’s strategic partners are BTC.com, Antpool, CoinEX, BITDEER, and more. Bitmain and its co-founder Wu Jihan are major shareholders in the venture.
Matrixport came out in July last year in Singapore and opened an office last November in Zug, Switzerland.
Crypto Startups Don’t Rely on ICOs Anymore
Cryptocurrency startups used to raise funds through initial coin offerings (ICO), which represent a type of crowdfunding. While ICOs promised to become the future of fundraising, the method has been compromised by an increasing number of scams and frauds, forcing its relevance to fade. Most ICO trackers have ceased to update data since at least last year.
As a result, most coin issuers renamed the crowdfunding process to initial exchange offering (IEO). In the latter case, a crypto exchange would handle the launch of the coin. However, this method also faded.
Today, crypto startups like Matrixport are returning to the old method of pitching institutional and professional investors for support.
Do you think that Matrixport would succeed if it would have tried one of the crowdfunding options? Share your thoughts in the comments section!
Image via Bitcoinist Media Library