Coinbase could soon be worth $8 billion
San Francisco-based cryptocurrency exchange and wallet developer Coinbase is already one of the most valuable companies in the crypto space. It reported its revenue last year at $1 billion and continues to expand around the globe. If a certain pending investment goes through, however, its valuation could skyrocket to as much as $8 billion.
The company is reportedly talking to Tiger Global Management of receiving an injection of cash worth around $500 million. Unidentified sources told the technology media outlet Recode that $250 million would be allocated for existing investor buyouts and the other $250 million would be held in the company's treasury. Tiger Global is an investment firm that's been around since 2011 and which investments internationally in private and public markets.
If the deal proceeds, it could be an indicator of a bright future for crypto. Michael Novogratz, founder and CEO of Galaxy Digital, explained to CNBC that the negotiations prove that cryptocurrency is more than just "tulip mania," adding, “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.”
Coinbase has been actively pursuing expansion plans on several fronts. It introduced its Coinbase Bundle product in May, giving investors the ability to trade a basket of digital currencies - Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin, which are purchased in direct proportion to their US dollar-based market capitalization.
It has also expanded its operations in the UK, recently announcing that it would begin offering trading pairs against the British pound. Coinbase has operated in the region since March of last year and has an e-money license issued by the UK's Financial Conduct Authority.