Digital Currency Group-backed Circle is reportedly planning to raise $250 million to further expand its crypto offerings despite last year’s bearish price action.
According to a recent report by The Information, which cites an individual familiar with the matter, the fundraising round will combine equity and debt financing.
Circle has raised $246 million to date from multiple investors including Accel, Bitmain, Blockchain Capital, Goldman Sachs (GS), Baidu, Pantera Capital, Digital Currency Group and IDG Capital. The most recent fundraising round was a Series E where it raised $110 million at a valuation of nearly $3 billion.
The decision to raise additional pre-IPO capital is likely part of a plan to gain further market share on Coinbase and its competitors through a combination of Circle Invest, Circle Trade and Poloniex, which it acquired in 2018. Coinbase notably raised $300 million last October, bringing the San Francisco-based exchange’s valuation to a whopping $8 billion. Circle’s timing seems fortuitous, as the crypto market is finally showing signs of life and Coinbase’s recent Neutrino acquisition has led some users to delete their accounts.
The new fundraising round will likely bring Circle’s valuation near the $8 billion range, as the race to IPO seems to be heating up.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.