Matrixport Looking to Triple Its Value to $300M

on Mar 4, 2020
  • Jihan Wu’s startup Matrixport is seeking to raise $40 million in a funding round that would value it at $300 million
  • The startup has amassed $7-8 million in revenue last year and expects to more than double that in 2020
  • Matrixport spokeswoman said the company is in contact with U.S.-dollar investors

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Crypto financial services startup Matrixport is aiming to raise $40 million in a funding round that would value it at $300 million. The startup was founded by the co-founder of Bitmain, Jihan Wu.

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After the news broke out on Wednesday, it is said that the startup has already pitched to investors over the last few weeks.

The Singapore-based crypto firm publicly launched in 2019 and started fully operating in February 2019, the company’s Chief Operating Officer Daniel Yan said last month. Matrixport’s operations include crypto trading, lending, and custodian services to both retail and institutional clients.

The company generated $7-8 million in revenue last year and expects that figure to double this year, according to a presentation slide shared with investors. It was shown in the slide deck that Matrixport was valued at $114 million in a previous round.

The startup is seeking to provide financial services for professional digital asset traders and investors. Matrixport was spun off from Bitmain in 2019, after the world’s largest manufacturer of crypto mining products faced a cash crunch.

Wu and Bitmain own the majority of the shares in the startup. The company is in communication with the US dollar investors, said the company’s spokeswoman.

Regarding the assets under management (AUM), Matrixport has generated more than $500 million worth of digital assets under custody, as reported by The Block. Additionally, it has accumulated about $100 million in outstanding loans and has processed more than $500 million in spot transactions.

“Because of this relationship [with Bitmain], it’s so easy [to get sales inbounds]. We know the Bitmain salespersons really well and we work together,” Daniel Yan said in an interview with The Block at the time.

The majority of customer inflow comes from miners. Matrixport runs an over-the-counter (OTC) trading desk to handle large trades and provides different risk management solutions to clients via derivatives contracts and structured products.

As for the retail operations, the company provides spot trading services and offers a dual-currency contract where the settlement currency can be either Circle-Coinbase‘s USD stablecoin or bitcoin, in addition to custodian and lending services.