Coinbase said to be close to finalising $500-million funding round

The deal could value the company at about $8 billion

Coinbase said to be close to finalising $500-million funding round

The largest US cryptocurrency exchange, Coinbase, is finalising a deal that will value the company at around $8 billion and make it one of the highest-valued American start-ups, according to a recent report from Recode.

The tech publication reported on Tuesday that the San Francisco-based company is in talks with Tiger Global and existing shareholders, New York-based investment firm, for an investment of up to $500 million. The company is likely to keep $250 million, while as much as $250 million more could be used for buying out existing shareholders, Recode said, citing unnamed sources familiar with the matter. The exact numbers have not yet been determined, the report says.

Coinbase, which was valued at about $1.5 billion last summer, is reportedly profitable in 2018, despite the massive dip in digital currency prices. Still, the crypto slump has put some pressure on the company’s core business, according to Recode’s sources. Despite that, Coinbase executives have insisted that they are focused on “building an open financial system for the world” rather than short-term financial performance.

Coinbase’s moves, especially in recent months, have seemingly been supportive of these claims. While not the largest in the world, in terms of trading volume, the exchange has been trying to establish itself as the most reputable platform for trading digital currencies. To this end, the company has moved to become a SEC-regulated securities firm. It has also sharpened its focus on institutional investors, releasing a set of products aimed at attracting more big investors to the world of cryptocurrencies. In one of its most recent moves, the company released another suite of products, such as Coinbase Bundles, aimed at simplifying the process of crypto trading and educating newcomers about digital currencies.

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