Matrixport, a financial services firm owned by billionaire Jihan Wu, co-founder of giant crypto mining firm Bitmain, is reportedly planning to secure $40 million in capital at a post-investment valuation of $300 million.
According to Bloomberg, which cited sources familiar with the matter, Matrixport’s management has been pitching various options to potential investors.
Officially introduced in July 2019, Matrixport has been operating since February of last year. This, according to the company’s chief operations officer, Daniel Yan. The firm’s services include digital asset trading, lending, and custody solutions for retail and institutional investors.
Matrixport generated between $7-8 million in revenue during 2019, and now expects that figure to increase by over 100% this year. The firm had been valued at $114 million during a previous investment round.
Matrixport has more than $500 million in crypto assets under its custody. The company issued approximately $100 million in loans and has handled over $500 million in spot cryptocurrency trading.
In statements shared with The Block, Yan noted:
“Because of this relationship [with Bitmain], it’s so easy [to get sales inbounds]. We know the Bitmain salespersons really well and we work together.”
The majority of Matrixport’s customers are interested in the firm’s mining business. The platform operates an over-the-counter (OTC) trading desk in order to handle large transactions and provides several different risk management tools to cryptocurrency miners through derivatives contracts and structured financial products.
Matrixport also facilitates spot trading and provides a dual-currency contract that may be settled with Bitcoin (BTC) or the USDC stablecoin. Additionally, Matrixport provides crypto custody and lending solutions to retail clients.