San-Francisco-based wallet service and crypto exchange Coinbase is in the process of finalizing negotiations with Tiger Global that would raise the valuation of the company to $8 billion. If this deal comes through, it would make Coinbase one of the highest-valued startups in the U.S. This deal would further help in legitimizing the crypto industry at large.
Presently, Coinbase is holding discussions with Tiger Global and its shareholders regarding this $500 million investment. According to reports, the exchange is expected to add around $250 million to its own coffers, while another $250 million is likely to be invested in buying out existing investors. The exact amount is yet to be determined.
Coinbase, which is considered to be the leading marketplace for crypto trading, was valued at around $1.5 billion last summer. However, it displayed a massive spike in consumer interest in Bitcoin last quarter of 2017. The exchange’s business has suffered since then with the sell-off in crypto prices this year.
However, crypto exchange Coinbase CEO, Brian Armstrong stated that the exchange isn’t focused on momentary peaks and valleys in trading volume. He said that the exchange’s focus is instead on building an open financial system for the world.
Coinbase has been in constant talks with investors for almost all of 2018 about a secondary stock sale. This sale would allow the existing investors to cash out without the exchange having to raise fresh capital for itself. However, the secondary sale has been moving at an extremely slow pace and a final deal was never reached, as reported on Recode.
Founded in 2011, Tiger Global Management is an investment firm that invests globally in both public and private markets. Michael Novogratz, Galaxy Digital crypto investment firm CEO said that this new regarding the negotiations proved that virtual currencies like Bitcoin (BTC) were more than just what he termed as “tulip mania”.
The Coinbase crypto exchange has moved to expand its business rapidly on multiple fronts. The exchange announced in May the launch of four new products that aimed to unlock $10 billion of institutional investor money that’s sitting on the sideline, as stated in the Cointelegraph report.
The post Crypto Exchange Coinbase Is In Talks With Tiger Global To Finalize Deal appeared first on OWLT Market.
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