While funding is geared at expansion and having enough liquidity for operations, the projected Gemini Exchange funds raised are billed to be used to power its growth plans, as the chances for acquisitions are not being ruled out.
American regulated cryptocurrency exchange, Gemini Trust Co is looking to raise a sum of $400 million from investors according to a Thursday report from Bloomberg. Citing people familiar with the matter, Bloomberg said the details of the fundraiser have not yet been finalized and could change along the line.
Should the trading firm secure as much as the projected $400 million, its valuation will top $7 billion, making it one of the most valuable digital trading firms in the US and the world at large. Should the funding round run as reported, it will place the trading platform in the spotlight as many crypto-focused firms are also leveraging the growing interest in the industry amongst investors.
The Gemini exchange occupies a pivotal position in the digital currency industry today as it is established by 2 of the most vocal advocates of Bitcoin, Cameron and Tyler Winklevoss. Drawing on its founder’s pedigree, the likelihood of the firm attracting the biggest investors in the industry is high.
Gemini already offers a number of innovative products that will make investors look towards partnering with the firm. Besides offering cryptocurrency custodial services to institutional investors like Australia’s Holon Investment Filecoin Fund amongst others, the trading platform also recently detailed its plans to venture into crypto derivatives services.
Gemini’s attractiveness was also showcased with the plans to expand its footprint beyond the United States and Europe and into the SouthEastern Asian markets in response to the rising demand in the region. The platform is as robust as any mainstream centralized exchange in operation today as it recently unveiled its support for a wide array of decentralized finance (DeFi), and Non-Fungible Token (NFT) based tokens respectively.
This and more strides have ignited the attractiveness of the firm, and the potential success it is bound to record should it proceed with the fundraising plan.
Gemini Exchange Fundraising: the Private or the Public Way?
Per the Bloomberg report, the potential $400 million raise from the firm is likely a private round, a model that is now particularly common amongst various trading platforms.
In the year-to-date period, FTX Derivatives Exchange has pulled in as much as $1.4 billion from investors. Back in July, Coinspeaker reported that the firm pulled in $900 million from investors including Sequoia Capital, Ribbit Capital, Paradigm, Sino Global Capital, the Paul Tudor Jones family, and others. The Sam Bankman-Fried lead company followed this funding round with another $420 million Series B-1 round in October, valuing the firm at $25 billion.
While FTX has raised much money amongst private crypto firms this year, Coinbase Global Inc (NASDAQ: COIN) stunned the world when it went public back in April. While funding is geared at expansion and having enough liquidity for operations, the projected Gemini Exchange funds raised are billed to be used to power its growth plans, as the chances for acquisitions are not being ruled out.
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