Coinbase valued at $8 billion, following negotiations with Tiger Global
Coinbase, among the world's top cryptocurrency exchanges, could be valued at $8 billion following recent investment negotiations, as reported by Recode on Tuesday.
According to recent reports, New York-based hedge fund Tiger Global Management is eyeing an investment of $500 million in the crypto start-up. Coinbase is reportedly looking to add the initial $250 million into its own books and the remaining $250 million will be used for buying investors out, thereby retaining control.
Tiger Global has been a seed investor in several companies, including Udesk, BestSign, Spotify Technologies, Tyro Payments, Flipkart and many more. The hedge fund mainly targets companies that are consumer-facing, irrespective of industry. Collectively, it has over 200 investments spanning 30 countries, as per Bloomberg.
The valuation of Coinbase has certainly caught the attention of major players within the crypto spehere, with Galaxy Digital CEO Michael Novogratz stating that these discussions further prove the point that digital currencies are not a “tulip mania,” referring to the inflationary prices of tulips in the 17th century Dutch empire.
At the Economist’s Finance Disrupted conference on Tuesday, Novogratz said, “here's the poster child (Coinbase) of the crypto space worth $8 billion, that's a real company, and Tiger's not a flake of an investor. These are smart, savvy guys.”
The crypto start-up had earlier received $100 million in series D funding, led by IVP and saw the participation of Spark Capital, Greylock Partners, Battery Ventures, Section 32 and Draper Associates. Tiger Global's addition of $500 million will make Coinbase the most highly valued start-up in the U.S.
Moreover, the platform has been rapidly expanding its business on several fronts. Four new products were announced earlier in May, which looked to “unlock $10 billion of institutional investor money sitting on the sideline.”
A new product, called “Coinbase Bundle”, was introduced which aims to bundle up digital currencies to facilitate diverse trading pairs. The bundle offers five cryptocurrencies which can be easily paired and are supported by other Coinbase services. This list includes: Bitcoin [BTC], Bitcoin Cash [BCH], Ethereum [ETH], Litecoin [LTC], and Ethereum Classic [ETC].
Notably, there have been reports that Coinbase could potentially weigh an IPO in the near future. The platform has already been upscaling and increasing its offerings to users. Recently, Coinbase hired Chris Dodds from Charles Schwab, to replace David Marcus as independent director, which is notable since internal governance is of utmost importance for an IPO to be successful. The addition of Dodds will be to facilitate expansion of their services, specifically its financial offerings.
Image via the Wall Street Journal
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