According to a report from the Wall Street Journal, the bitcoin company Coinbase is seeking investors in a new funding round that aims for a $1 billion dollar valuation.
Coinbase Seeks Investment Pledges of ‘$100 Million or More’ for a $1 Billion Valuation Goal
Sources familiar with the matter told the publication Coinbase is currently having discussions with potential investors. Currently, investors that may pledge towards the round are undisclosed, but the source has disclosed it will be one of the biggest funding rounds in the digital currency space. The company has been one of the most well-known startups since Brian Armstrong, and Fred Ehrsam founded the company in 2012.
Over the course of the company’s life, it has so far raised $117 million over five funding rounds. This includes funding from big-name venture firms such as Andreessen Horowitz, BBVA Ventures, and the New York Stock Exchange (NYSE). The Wall Street Journal says the company is now seeking “$100 million or more” from investors looking to pledge.
“There’s more interest in bitcoin when prices go up, and then trading volume goes up,” explains one investor to the news outlet.
Therefore there’s more interest in bitcoin companies.
Investors Are Noticing the San Francisco Bitcoin Company’s Popularity Continues to Grow
Besides getting large capital injections from venture firms and individual investors the company has grown massively. For instance, Coinbase claims to have 7.4 million users and works with 46,000 merchants who accept bitcoin. Additionally, the company has issued 24.2 million wallets and its software team has released 10,000 developer applications. On May 26 the company’s CEO Brian Armstrong told the public the company was seeing a significant influx of new registrants.
“Coinbase had 40,000 new users sign up in one day, or approximately one San Francisco Giant’s Stadium,” exclaimed Armstrong.
May was a crazy month for Coinbase as the price spike caused “Slow load times and degraded performance” and “partial outage” issues on May 22 through 25th.
If venture organizations and investors give more funding to Coinbase, the startup will be the largest funded bitcoin-based company on the record. The valuation will push Coinbase higher than other bitcoin-focused companies with significant funding capital such as 21 Inc. and Circle Financial.
What do you think about Coinbase looking for more venture capital? Let us know in the comments below.