Report: Coinbase Negotiation Could Value Crypto Exchange at $8 Billion

Published at: Oct. 3, 2018

San Francisco-based cryptocurrency exchange and wallet service Coinbase is finishing negotiations that would value the company at $8 billion, technology news site Recode reports Oct. 2.

Citing anonymous sources familiar with the matter, Recode states that Coinbase is in talks with Tiger Global and its shareholders regarding a possible $500 million investment. The sources reportedly said that Coinbase would add $250 million to its treasury, while another $250 million could be slated for buying out existing investors.

Tiger Global Management is an investment firm founded in 2011 that invests globally in both private and public markets.

Galaxy Digital crypto investment firm CEO Michael Novogratz said the news about the reported negotiations proved that cryptocurrencies like Bitcoin (BTC) were more than just “tulip mania.” CNBC quotes Novogratz at the Economist's Finance Disrupted conference on Tuesday:

“Here's the poster child (Coinbase) of the crypto space worth $8 billion— that's a real company, and Tiger's not a flake of an investor. These are smart, savvy guys.”

According to CNBC, a deal with Tiger Global would make Coinbase one of the most highly valued startups in the U.S. Last year, following a series D funding round led by IVP, with participation from Section 32, Draper Associates, and others, Coinbase was worth an estimated $1.6 billion.

Over the past year, Coinbase has moved quickly to expand its business on multiple fronts. In May, the exchange announced the launch of four new products which aim to “unlock $10 billion of institutional investor money sitting on the sideline.”

Recently, Coinbase introduced a new product called “Coinbase Bundle,” which it purports will simplify the crypto trading process. Coinbase Bundles is a basket of five cryptocurrencies supported on Coinbase — Bitcoin, Bitcoin Cash (BCH), Ethereum (ETH), Litecoin (LTC), and Ethereum Classic (ETC) — and purchased in proportion to their market capitalization in U.S. dollars.

Coinbase has also on-boarded a host of talent from traditional financial institutions as well as big name tech companies like Facebook, Microsoft, Amazon, and Google. Today, Coinbase announced that Chris Dodds, a member of the board at Charles Schwab, would be joining the exchange’s board to contribute to the Coinbase’s expansion in terms of its financial services capabilities.

Tags
Bitcoin
Cryptocurrency Exchange
Investments
Coinbase
Related Posts
11.4M Bitcoin Held As Long Term Investment
According to Chainalysis, the vast majority of Bitcoin (BTC) is held as long term investment, with 60% held by licensed custodians. Breakdown of Bitcoin supply. Source: Chainalysis. Digital gold The company concluded that the breakdown of Bitcoin’s supply makes it similar to gold, supporting the asset’s status as digital gold. They clarify, however, that it is the 3.5 million BTC that is actively traded which supports the price: “But this digital gold is supported by an active trading market for those who prefer to buy and sell frequently. The 3.5 million Bitcoin used for trading supplies the market, and, in …
Bitcoin / June 20, 2020
Coinbase Raises $300 Million in New Funding Round to ‘Accelerate’ Cryptocurrency Adoption
Major U.S. crypto exchange and wallet provider Coinbase has raised $300 million in a fresh funding round that brings its post-money valuation to $8 billion, according to an official blog post published today, Oct. 30. The Series E equity financing round was reportedly led by investment firm Tiger Global Management, with participation from a host of backers well-known for their investments in the crypto space, such as Y Combinator Continuity, Wellington Management, Andreessen Horowitz, and Polychain, among others. According to Coinbase, the funds will be used to “accelerate” the adoption of cryptocurrencies, with plans to build infrastructure to support regulated …
Adoption / Oct. 30, 2018
Coinbase Targets ‘$10 Bln’ Institutional Investor Market With New Suite Of Products
Major US crypto wallet provider and exchange service Coinbase has announced it is launching a suite of new products aimed at institutional investors, according to an official blog post today, May 15. The four products – Coinbase Custody, Coinbase Markets, The Coinbase Institutional Coverage Group and Coinbase Prime – all focus on alleviating major concerns that have allegedly caused institutional investors to hold back from entering the cryptocurrency space so far, such as security and regulatory compliance. Adam White, Coinbase vice president and general manager, was confident in telling CNBC that: "We think this can unlock $10 billion of institutional …
Bitcoin / May 15, 2018
Bitcoin beats owning COIN stock by 20% since Coinbase IPO
Buying a Coinbase stock (COIN) to gain indirect exposure in the Bitcoin (BTC) market has been a bad strategy so far compared to simply holding BTC. Notably, COIN is down by nearly 50% to almost $186, if measured from the opening rate on its IPO on April 14, 2021. In comparison, Bitcoin outperformed the Coinbase stock by logging fewer losses in the same period — a little over 30% as it dropped from nearly $65,000 to around $41,700 What's bothering Coinbase? The correlation between Coinbase and Bitcoin has been largely positive to date, however, suggesting that many investors consider them …
Etf / March 19, 2022
Crypto recruitment execs reveal the safest jobs amid layoff season
Despite a wave of heavy crypto layoffs to start the new year, employees in technical and engineering roles, as well as senior management, will likely continue to see “strong demand” for their skills, recruitment professionals believe. It’s been a tough first few weeks of 2023 for crypto businesses and their staff. Within just two weeks, the market has already seen more than 1,600 crypto-related job cuts as a result of continued market volatility and uncertainty. However, not all departments have seen the same level of cuts. SAFU: Senior-level tech and engineering Rob Paone, founder and CEO of crypto recruitment firm …
Blockchain / Jan. 18, 2023