Critical Move from Giant Bitcoin (BTC) Exchange: They Collected 40 Million!

According to the information provided by four sources with knowledge on the subject, it has the largest market share. bitcoin Deribit, an options exchange, has raised funds from existing investors at a valuation of $400 million.

Two of the four sources said the Panama-based exchange raised about $40 million in the deal. Its current shareholders include QCP Capital, Akuna Capital and Dan Tapiero’s 10T Holdings.

Bitcoin Exchange Deribit Damaged by Three Arrows Capital Crisis

Fundraising, Deribit’s bankruptcy cryptocurrency It came three months after Three Arrows Capital (3AC) took a “small” hit by liquidating its positions after the hedge fund failed to meet its margin calls.

Bitcoin exchange Deribit has raised new capital to bring its reserves back to the level they were before the 3AC event, according to one of the sources.

According to one of the sources, given the 3AC crisis and the current weak market conditions, the unique circumstances brought by the recent fundraising turned into a huge discount for existing backers.

The source said that Bitcoin exchange Deribit received a valuation of $2.1 billion in its last funding deal, which raised $100 million in August 2021.

Luuk Strijers, Deribit’s chief commercial officer, said the $400 million valuation was “essentially insignificant” because the funding came from existing investors:

“It could have been any value. This is more of a buyback of dividends from existing shareholders. We had paid a high dividend before and decided it was more prudent to strengthen our balance sheet and retain assets rather than distribute them to shareholders.”

Strijers said the true value of a company cannot be known until it performs an external fundraising process. He said Deribit kept its valuation low “to avoid arguments” with potential investors during this internal round, and that a company’s valuation “only matters when raising funds externally.”

*Not investment advice.