Bitmain’s Founder Jihan Wu’s Crypto Startup Seeks $40M at $300M Valuation, A 3x Increase
Bitmain’s spin-off offering crypto trading solutions that was created an year ago is seeking to be valued at $300 million after its latest funding round, CoinDesk reports.
Matrixport which was started by Jihan Wu, Bitmain’s co-founder, is expecting to raise $40 million in its upcoming funding round which will see the firm’s value shoot to $300 million.
The startup reported a revenue of between $7 to $8 million last year and forecasts that this figure will be doubled before the end of this year. Bloomberg reports that the details about the firm’s financial performance and status was sent to investors in the form of a slide deck. The deck reveals that after the previous funding round, Matrixport saw its valuation stand at $114 million.
The firm which operates from Singapore is seeking funds to expand its cryptocurrency financial services solutions to serve the professional crypto traders and investors. The startup was hived from Bitmain last year at a time when the biggest developer of Bitcoin mining equipment sought to become a public trading company and was struggling with finances.
Matrixport provides crypto trading services solutions like custodial services, trading, payment products as well as services and loans to institutional customers, encompassing mining equipment suppliers, crypto lending firms, crypto exchange platforms, mining pools, as well as crypto funds.
The startup competes with American-based companies Genesis Global as well as BitGo. Other than Bitmain, Matrixport also has strategic partnership agreements with BTC.com, BITDEER, Antpool and CoinEX. The firm’s main shareholders are Wu Jihan and Bitmain.
The firm claims that it has more than $500 million of crypto assets within its custody. The firm has also generated about $100 million in terms of outstanding loans. When it comes to crypto trades, it has processed more than $500,000 since its inception last year. Most of the firm’s clients are miners and, as a result, it provides different risk management solutions to miners through derivatives contracts as well as structured products.