Coinbase To Be Valued At $8 Billion Following Hedge Fund Investment
Coinbase is negotiating a deal with investment firm Tiger Global a U.K. hedge fund that invests mainly in global consumer brands, currently valued at billions of dollars.
According to Recode, a Vox-affiliated technology news outlet, insiders claimed that the firm is in the midst of inking a deal worth of $500 million that will value Coinbase at $8 billion, a five-fold increase in comparison to Coinbase’s publicly-reported valuation in 2017.
The investment would make Coinbase one of the highest valued U.S. startups, and strengthen the cryptocurrency market’s legitimacy. The investment in part would buy out existing shareholders, although the specific numbers have not been determined.
According to sources, Coinbase is also expecting to peg on an additional $250 million USD in new money to its own coffers. The report also explains that another potential $250 million USD could go to buying out existing investors.
Tiger Global is a major investment firm based in New York. The company tends to gear itself towards making massive deals with companies in brands which attracts a large consumer-base. The company invests in private and public markets and is held in high esteem by Galaxy Digital’s CEO Michael Novogratz
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