Coinbase Valued Over $8 Billion After $300 Million Funding From Big Name Investors

Coinbase is now valued at over $8 billion after raising more than $300 million from big-name investors like Tiger Global, Andreessen Horowitz, and Polychain Capital.

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The U.S based platform is among the most popular cryptocurrency companies and the current valuation would put right amidst the top tech startups in the world.

Coinbase Valued Over  Billion After 0 Million Funding From Big Name InvestorsThe rapidly expanding Coinbase announced on Tuesday, October 30, 2018, that it had raised $300 million during its latest financing round. As per the blog post, New York-based Tiger Global led the series E funding.

Other contributors were investment firm Y Combinator, Wellington Management, Polychain Capital, and Andreessen Horowitz. XBT.net previously reported that Coinbase was nearing a deal with Tiger Global that would see it valued at $8 billion.

Coinbase Chief Operating Officer Asiff Hirji wrote in the post that the funding is aimed at accelerating the company’s global expansion, noting that the platform could list “hundreds of cryptocurrencies” at the moment.

He also added that the platform has plans to “lay the groundwork” that would see it support thousands of digital assets in the future. In fact, Coinbase recently listed 0x (ZRX) and many are constantly speculating about the next coin on Coinbase.

$8 billion valuation

With Coinbase’s valuation hitting $8 billion, the San Francisco startup is valued higher than most of the cryptocurrencies in the market. Only the top three crypto assets currently have a higher market capitalization than Coinbase.

The top coins, Bitcoin (BTC),  Ethereum (ETH) and Ripple (XRP), have market caps of $109 billion, $20 billion and $18 billion, respectively. The next big cap cryptocurrency is Bitcoin Cash (BCH), with a market cap of $7.3 billion.

Even though these assets could see their valuation skyrocket, Coinbase’s position is an illustration of how rapid its growth has been and the kind of important investors it has attracted.

Coinbase has raised capital to the tune of about $520 million to date, with its Series E round managing to raise almost thrice the amount raised in the company’s Series D financing round.

Documents showed that Coinbase profits over 2017 crossed $380 million and current projections, despite the nearly year-long bear market, put 2018 profits at $456 million. The startup’s revenue is expected to be closer to $1.3 billion.

Success in the market means that Coinbase did not need to have the series E funding round, but nonetheless pursued it out of opportunism.

Bloomberg has quoted the COO Hirji as saying that those companies that have an interest in its investment care about what the crypto industry represents, that is “the next wave of tech innovation.” He added:

“This was an opportunistic round. We didn’t have to go out and raise capital.”

Coinbase reportedly tried to conduct the latest funding round based on a higher valuation, though those plans did not hold owing to the effect of a bearish market that has seen many investors wary.

But the company’s COO insisted that the crypto space needs to be about more than prices and that informed their decision not to take “investments from firms that didn’t have a constructive view of crypto,”

Other than listing new cryptocurrencies, Coinbase intends to bring more investors into crypto via its Coinbase Custody solution. The company recently secured a license from regulators allowing it to operate as a custodial service.

It also wants to roll out additional “utility applications” for digital assets, with its Coinbase Wallet helping consumers to explore blockchain-based applications.

Also important was its decision to join the CENTRE consortium, which sees it work on the stablecoin USD Coin (USDC), one of the first moves towards the commitment to cryptocurrency.

Hirji said that Coinbase sees its growth as justification that the crypto ecosystem can only continue to expand, ultimately opening up the world’s financial system.

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