Vikram Pandit along with the New York Stock Exchange and other investors have pumped in USD 75 million into US-based Coinbase in what is billed as one of the biggest publicly...
Noted India-origin banker Vikram Pandit along with the New York Stock Exchange and other investors have pumped in USD 75 million into US-based Coinbase in what is billed as one of the biggest publicly disclosed funding for a Bitcoin company.
The investment by marquee investors in a Bitcoin company comes at a time when the popular online cryptocurrency, turned out to be one of the worst investments in 2014 as its value plummeted by about 50 per cent.
One Bitcoin is currently valued at USD 206, about one-sixth of its peak price of about USD 1,200 apiece in 2013.
“We are pleased to announce that Coinbase has raised USD 75 million in Series C financing, the largest funding round to date for a Bitcoin company. This brings our total capital raised to USD 106 million,” said a blogpost of Coinbase, a popular bitcoin wallet.
“Three of the world’s most respected financial institutions, The New York Stock Exchange, USAA, and BBVA (a large multinational bank) also invested in the round alongside personal investments from former Citigroup CEO Vikram Pandit and former Thomson Reuters CEO Tom Glocer. This marks the first time that financial institutions have made a major investment in a Bitcoin company,” it added.
The round was led by DFJ Growth, with participation from Coinbase’s existing investors, including Andreessen Horowitz, Union Square Ventures, and Ribbit Capital.
The round saw participation from a number of other strategic partners who will accelerate the company’s international expansion, including NTT DoCoMo, Japan’s largest mobile telecommunications operator, Coinbase said.
The latest fundraise gives the company solid growth capital to continue driving mainstream, global adoption of Bitcoin, it added.
Founded in June of 2012, Coinbase is a bitcoin wallet and platform where merchants and consumers can transact with the new digital currency bitcoin.
Bitcoin is the world’s most widely used alternative currency with a total market cap of approximately USD 3 billion. The bitcoin network is made up of thousands of computers run by individuals all over the world.