Gemini Exchange Planning To Raise $400 Million In New Funding Round, Valuation At $7 Billion
Cryptocurrency exchange Gemini plans to raise $400 million in a funding round that will see its valuation to about $7 billion.
Gemini Joins League Of Crypto Firm Who Have Raised Their Valuation
According to a report by Bloomberg, Gemini, co-owned by the Winklevoss twins (Cameron and Tyler), plans to take advantage of the current surge in the crypto market to up its valuation and elevate its status in the crypto market.
This will see them raise about $400 million, thereby pushing the Bitcoin exchange's valuation to $7 billion. The funding round, which is considered private, is still subject to change, according to sources familiar with the project.
In the past months, some crypto-facing companies have raised capital amounting to several millions of dollars. ConsenSys, an Ethereum development studio, announced on November 17 that it was now worth a whopping $3.2 billion after successfully raising another $200 million in funding. Coinbase Ventures and several crypto venture capital bigwigs participated in the new funding round.
FTX was also able to raise $900 million in a funding round back in August before raising another $420M in a subsequent round of funding in October. The crypto exchange company as of today is now valued at $25 billion.
Kraken, a Europe-focused cryptocurrency exchange, has also refused to be left out. The cryptocurrency exchange has plans to go public in 2022. According to reports in the media, the crypto firm is seeking a valuation of close to $20 billion.
Crypto collectibles and non-fungible tokens (NFTs) marketplace, OpenSea, just three months after reaching a value of $1 billion, received investment approaches that valued the company at $10 billion. According to a source on Twitter, this valuation happened even without the four-year-old startup initiating the process.
Under the guidance of the Winklevoss twins, Gemini wants to take advantage of a booming market and join the league of the big beneficiaries of this season. Crypto firms have been ramping up their valuations following a huge surge in the crypto market, which traded just north of $3 trillion at $2.92 trillion a few days earlier.
This points to a growing influx of retail and institutional interests in the crypto ecosystem. Crypto bellwether, Bitcoin (BTC) still leads the nascent industry after climbing up to over $69,000 in value a few weeks earlier.
Good Times Ahead For Crypto Companies As Crypto Gains Mainstream Traction
There is high optimism among global fund managers who believe that the digital currency will continue its surge and go beyond $75,000 before the end of the year, according to a Bank of America Survey in November per reports from CoinDesk.
If the crypto market continues to ride its high momentum, it will mean more investment opportunities for crypto companies. Despite the volatility associated with crypto investments, many crypto enthusiasts are optimistic that the industry will record future gains.