With energy prices rising, switch to a cheaper plan
Compare Prices Now

A new fundraising round leaves Coinbase valued at $8 billion

Posted: 31 October 2018 4:34 pm
shutterstock data servers crypto 450x250

It's got plans for that money and cryptocurrency as a whole.

Coinbase has received a shiny new $8 billion valuation after completing a new $300 million fundraising round to accelerate the adoption of cryptocurrencies. The latest round was led by Tiger Global Management and involved some familiar names in fintech and cryptocurrency, including Y Combinator, Andreeson Horowitz, Polychain and others.

Where Coinbase stands and where the money goes

The $8 billion valuation cements Coinbase's position as one of the world's most highly-valued cryptocurrency firms, just in case there were any doubts.

The valuation puts Coinbase's valuation above all cryptocurrency except bitcoin, Ethereum and XRP, and well above most other exchanges. Its European equivalent, or as close as one can get to it – Bitstamp – might be estimated to be somewhere closer to $400 million based on its recent buyout.

In a blog post announcing the completion of its Series E fundraising round, Coinbase president and COO Asiff Hirji said the newly-raised funds would be going towards global expansion, loading more crypto assets onto the exchange more quickly, introducing additional utility applications for cryptocurrency and bringing a wider range of institutions into cryptocurrency.

More specifically, it names the following among its goals:

  • Building additional infrastructure between fiat and cryptocurrency in markets around the world.
  • Continuing development of Coinbase Wallet.
  • Expanding support for more coins.
  • Adding additional features and assets to its custody offering, to help onboard institutional users more effectively.

A lot of these objectives are already well underway.

It has recently overhauled listing practises to onboard more coins much more quickly and is working to start trading security tokens. Most recently, it's pushing hard on a new stablecoin, the USDC, released as part of a broader consortium initiative.

Functionally, it has also made a series of acquisitions to expand the potential applications to cyptocurrencies beyond buying, selling and trading, and moving towards more of a useful crypto-economy. Acquisitions to this end include Earn.com, and the Compound platform – the first acquisition of Coinbase's venture capital arm, picked up only hours after the VC division's creation.

Disclosure: At the time of writing the author holds ETH, IOTA, ICX, VET, XLM, BTC, ADA

Disclaimer: This information should not be interpreted as an endorsement of cryptocurrency or any specific provider, service or offering. It is not a recommendation to trade. Cryptocurrencies are speculative, complex and involve significant risks – they are highly volatile and sensitive to secondary activity. Performance is unpredictable and past performance is no guarantee of future performance. Consider your own circumstances, and obtain your own advice, before relying on this information. You should also verify the nature of any product or service (including its legal status and relevant regulatory requirements) and consult the relevant Regulators' websites before making any decision. Finder, or the author, may have holdings in the cryptocurrencies discussed.

Latest cryptocurrency news

Picture: Shutterstock

Get into cryptocurrency

Ask an Expert

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms of Use, Disclaimer & Privacy Policy and Privacy & Cookies Policy.
Go to site