Matrixport, a cryptocurrency firm founded by Bitmain co-founder Wu Jihan, is in the process of raising $100 million in funding despite the ongoing crypto market crisis.
Lead investors have already committed $50 million to Matrixport’s new funding round at a $1.5 billion valuation, Bloomberg reported November 25. The deal has yet to be finalized as Matrixport is still looking for investors for the second half of the round.
We are excited and look forward to meeting the participants under similar conditions in the second half #financing bike.
— Matrixport (@realMatrixport) November 25, 2022
According to the company, the new round is part of Matrixport’s regular funding agenda. “Matrixport routinely engages with key stakeholders as part of its normal business, including investors who want to participate and enable our vision as a digital asset financial services provider,” said the company’s head of public relations, Ross Gan.
Matrixport’s new funding comes a year after the firm completed a $100 million Series C funding round that took place in August 2021, making it a $1 billion unicorn.
Fundraising was led by major global venture capital firms, including DST Global, C Ventures and K3 Ventures. Other contributors in this round included major industry investors such as Tiger Global, Qiming Venture Partners, CE Innovation Capital, A&T Capital, along with existing investors such as Polychain, Dragonfly Capital, Lightspeed, IDG Capital and others.
According to Bloomberg data, Matrixport processes $5 billion worth of trades each month and has tens of billions of dollars worth of assets under management and custody. The company reportedly employs nearly 300 people.
Founded in February 2019, Matrixport is one of the largest cryptocurrency lenders in Asia and offers a wide range of crypto services, including trading and custody. The company also offers cryptocurrency and stablecoin loans as well as zero-cost loans with 0% interest rate and liquidation protection.
Matrixport is one of the few cryptocurrency lending platforms that appears to have been unaffected by the ongoing crisis cryptocurrency lending. As previously reported by Cointelegraph, some of the largest cryptocurrency lending platforms including Celsius and BlockFi are facing big problems this year due to the ongoing bear market and related cryptocurrency lending crisis.
Wu’s crypto company also said it wasn’t much affected ongoing FTX infection, reports several issues due to the crash of Sam Bankman-Fried’s crypto exchange. November 11 Matrixport reported that 79 of its users suffered losses due to FTX issues, adding that affected products included BTC Fixed Income and Victoria BTC Fund products.
“We would have to emphasize that Matrixport’s products are strictly segregated from each other, so that a single affected product will not affect other products as the underlying assets and funds flows are separated,” the firm said.