Coinbase Current Valuation Reaches $8B
The leading crypto exchange company based in San Francisco just closed a $300 million funding round of Series E held by Tiger Global. The president and COO of Coinbase, Asiff Hirji, expressed that this funding round had increased the company’s valuation reaching more than $8 billion. Other companies who participated in this round include Polychain Capital, Wellington Management, Andreessen Horowitz, and also Y Combinator Continuity.
Coinbase, which just defined a new listing structure for tokens, has a plan to list more cryptos quickly, continued Hirji, because the firm already sees 100s of cryptos that can be included to its exchange platform today and should have the basic fundamentals in place for thousands to be included in the near future.
An Opportunistic Decision
He also stated that Coinbase didn’t actually need the funding, but sought it as an opportunistic approach. As per the company’s documents, Coinbase reached a milestone of $380 million in profit last year and, regardless of the ongoing BTC bear market, foresees a growth in profit to reach a total amount of $456 million this year along with revenue up to $1.3 billion.
Hirji noted that the firms who invest in Coinbase realize that the startup represents the next phase of innovation in technology. He describes this round as a real opportunity as the company is not forced to increase capital
There were reports previously that Coinbase did in fact value itself privately at $8 billion, but there was no verification of this claim within the market up until now.
It seems Coinbase originally was going after a higher valuation this round, but realized due to the current decline in the market investors had become quite hesitant about the risk of overpricing a crypto startup.
Hirji further stated that the company wasn’t just interested in firm investments with no practical view of the industry as this round, along with the industry’s future in general, should be about more than just prices.
Along with the listing of new cryptos on its platform, Coinbase has intentions to use this financing to advance its expansion strategies internationally, while also adding various new characteristics and crypto listings to its new institutional platform following its recent authorization from regulators in NY for operation as a qualified curator.
Hirji continued by suggesting that the company has plans to prioritize the development of utility applications for cryptos, which has been shown in its recent decision to underwrite the stablecoin USDC proposal.
It was revealed that Tiger Global had been considering an investment in the company of $500 million, with some part of these funds to be used to buy shares within a secondary market.