The Winklevoss twins’ cryptocurrency exchange, Gemini, intends to raise $400 million.
Gemini, a well-known cryptocurrency exchange based in Fresh York, has launched a new funding round in which it hopes to raise $400 million. As a result, the company’s total value might rise to $7 billion.
Bloomberg reported on Thursday that the fundraising will raise the exchange’s valuation to $7 billion, citing anonymous sources.
Gemini, led by Cameron and Tyler Winklevoss, is expected to join the growing list of major crypto-related companies, such as Coinbase and ConsenSys, in raising new capital by taking advantage of favourable market circumstances and increased interest from mainstream investors.
The arrangements have not been finalised, according to the report, so the parameters of the fundraiser can yet alter.
As the crypto market’s bull run continues, several exchanges are preparing to go public through an initial public offering (IPO), direct listing, or a merger with a special purpose acquisition firm (SPAC).
Gemini said earlier this month that it was considering an IPO to follow in the footsteps of its competitor, Coinbase, which had become the first U.S.-based exchange to go live on Nasdaq via a direct listing.
“We are definitely considering it and making sure that we have that option. We are watching the market, and we are also having internal discussions on whether it makes sense for us at this point in time. We are certainly open to it,” the company said.
Crypto enterprises require fresh capital as a result of the flood of huge institutional investors and increased competition in the field. This money can be used to hire new employees, make acquisitions, expand product offerings, and do many other things.
Gemini has risen to become one of the most popular crypto trading platforms in the United States, with a daily spot volume of $268.3 million. The New York-based exchange is also focused on regulatory compliance and developing solutions to help the Bitcoin and cryptocurrency ecosystem grow.
Gemini announced a long-term programme dubbed Gemini Green to help decarbonize Bitcoin by incorporating environmentally-conscious practices into its operations just a few months ago, following multiple complaints regarding the environmental implications of Bitcoin-related activities.