Matrixport, a cryptocurrency firm founded by Bitmain co-founder Wu Jihan, is in the process of raising $100 million in funding despite the ongoing cryptocurrency market crisis.
Leading investors have already committed $50 million to Matrixport’s new funding round at a $1.5 billion valuation, Bloomberg reported Nov. 25. The deal is still pending as Matrixport is still seeking investors for the second half of the round.
We are excited and look forward to interacting with members on similar terms in the other half #financing round.
— Matrixport (@realMatrixport) November 25, 2022
The new round is part of Matrixport’s regular funding program, according to the company. “Matrixport regularly engages with key stakeholders as part of its normal business, including investors interested in participating in and pursuing our vision as a digital asset financial services provider,” said Ross Gan, head of communications at the company.
The new Matrixport funding comes one year after the firm raised a $100 million Series C funding round in August 2021, making it a $1 billion valuation unicorn.
The fundraising was led by major global venture capital firms, including DST Global, C Ventures and K3 Ventures. Other participants in the round included major industry investors such as Tiger Global, Qiming Venture Partners, CE Innovation Capital, A&T Capital, as well as existing investors such as Polychain, Dragonfly Capital, Lightspeed, IDG Capital and others.
Matrixport transacts $5 billion in transactions every month and has tens of billions of dollars of assets under management and custody, according to Bloomberg. The company reportedly employs about 300 people.
Matrixport, founded in February 2019, is one of the largest cryptocurrency lenders in Asia, offering a wide range of crypto services including trading and storage. The company also offers loans in cryptocurrency and stablecoin, as well as loans with zero interest and liquidation protection.
Matrixport is one of the few crypto lending platforms that does not appear to have been affected by the ongoing crypto lending crisis. As Cointelegraph previously reported, some of the biggest crypto lending platforms, including Celsius and BlockFi, have faced significant challenges this year due to the ongoing bear market and the associated crypto lending crisis.
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Cryptocurrency company Wu also stated that it has not been affected too much by the ongoing FTX infection, reporting several issues due to the collapse of the Sam Bankman-Freed cryptocurrency exchange. November 11 Matrixport reported that 79 of its users suffered losses as a result of the FTX issues, adding that affected products include BTC fixed income products and Victoria BTC Fund products.
“We need to emphasize that Matrixport products are subject to strict segregation from each other to ensure that one affected product does not affect other products as the underlying asset and the flow of funds are separated,” the firm said.