(Bloomberg) — Gemini Trust Co., the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, said it has raised $400 million in a round of funding that values the company at $7.1 billion.
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The exchange’s first-ever outside financing was led by Morgan Creek Digital with participation from the Commonwealth Bank of Australia and other investors. Bloomberg first reported the funding round yesterday.
In addition to supporting trading, Gemini already custodies more than $30 billion in crypto assets, runs a marketplace for nonfungible tokens and lets users to lend their digital coins. The company said in a statement Thursday that the funding will also be used to expand its geographical footprint.
Gemini is joining a slew of crypto-related companies, including bigger rival Coinbase Global Inc. and ConsenSys Inc., in taking advantage of favorable market conditions and increasing interest from mainstream investors to raise money. Bitcoin hit an all-time high of $68,991 on Nov. 10 before giving back some gains in recent days.
Crypto startups’ valuations are ballooning, and new funding can help with acquisitions or with hiring staff as businesses expand internationally or look to introduce new products. The extra funds can come in handy amid growing competition, and as more retail investors and institutions dive into crypto.
The Winklevoss twins, who first became known when they challenged Mark Zuckerberg over the mantle of who invented social network Facebook, are early Bitcoin investors and believers. In addition to investing in crypto-related startups, they’ve built Gemini into a compliance-focused crypto exchange. Gemini recently had about $268.3 million in daily spot volume, per tracker CoinMarketCap.com, as compared with larger rival Binance at $30.2 billion.
“Gemini is the portal into crypto for new and seasoned investors alike,” Tyler Winklevoss said in the release. “The investors that we have brought on in this round share our ambitious vision for the future.”
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