Matrixport, the cryptocurrency company founded by Bitmain co-founder Wu Jihan, is in the process of raising $100 million in funding despite the ongoing cryptocurrency market crisis.
Major investors have already committed $50 million for the new round of financing of Matrixport, with a valuation of $1.5 billion, Bloomberg reported on November 25. The deal has yet to be finalized as Matrixport continues to seek investors for the other half of the round.
We’re excited and look forward to engaging with participants, on similar terms, in the other half of the #funding round.
Appreciate the trust and confidence our investors continue to have in Team #Matrixport.@business https://t.co/DqQhsYucUy
—Matrixport (@realMatrixport) November 25, 2022
According to the company, the new round is part of Matrixport’s regular funding schedule. “Matrixport routinely engages with major stakeholders as part of its normal course of business, including investors interested in participating and enabling our vision as a digital asset financial services provider,” said the firm’s head of public relations, Ross Gan.
Matrixport’s new funding comes a year after the firm completed a $100 million Series C funding round in August 2021, becoming a unicorn with a $1 billion valuation.
The fundraising was led by the world’s leading venture capital firms including DST Global, C Ventures and K3 Ventures. Other participants in the round were major investors in the sector, such as Tiger Global, Qiming Venture Partners, CE Innovation Capital, and A&T Capital, along with existing investors such as Polychain, Dragonfly Capital, Lightspeed, IDG Capital, and others.
According to Bloomberg data, Matrixport manages USD 5 billion of operations per month and has tens of billions of dollars of assets under management and custody. The company has about 300 employees.
Founded in February 2019, Matrixport is one of the largest cryptocurrency lenders in Asia, offering a wide range of cryptocurrency services, including trading and custody. The company also offers cryptocurrency and stablecoin loans, as well as zero-cost loans with 0% interest rate and liquidation protection.
Matrixport is one of the few cryptocurrency lending platforms that seem to have been unaffected by the current cryptocurrency lending crisis. As Cointelegraph previously reported, some of the largest cryptocurrency lending platforms, including Celsius and BlockFi, have faced big problems this year due to the ongoing bear market and associated cryptocurrency lending crisis.
Wu’s cryptocurrency firm also said it was not affected too much by the ongoing FTX contagion, reporting some issues due to the crash of the Sam Bankman-Fried exchange. On November 11, Matrixport reported that 79 of its users suffered losses as a result of the FTX issues, adding that affected products included BTC fixed income products and Victoria BTC fund products.
“We would have to underline that Matrixport’s products are subject to strict segregation between them, so that a single affected product will not affect the other products, since the underlying asset and the flow of funds are segregated,” stated the company.
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