UPDATED 23:03 EST / OCTOBER 02 2018

coinbase1 EMERGING TECH

Report: Coinbase in talks to raise $500M on $8B valuation

Coinbase Inc., the first cryptocurrency exchange to become a unicorn, is reported to be raising even more money on an $8 billion valuation.

Citing people familiar with the matter, Recode claimed Tuesday that the company is in talks with Tiger Global and existing shareholders for a round of up to $500 million. The deal is said to include $250 million in new money with an additional $250 million to buy out existing investors.

Founded in 2012, Coinbase offers an online platform that allows merchants, consumers and traders to transact with bitcoin and other cryptocurrencies. It offers cryptocurrency wallets as well the ability to buy and sell cryptocurrencies. Where it differs from others in the market is with its merchant payment processing platform that allows sites to accept cryptocurrencies as payment for goods and services sold.

The round, if it comes to fruition, follows capital raises of $10.5 million in July 2016 and $100 million in August 2017, the latter seeing Coinbase pass the unicorn valuation of $1 billion for the first time.

The massive spike in Coinbase’s valuation is credited to the increase in interest in cryptocurrencies last year. Recode did note that the potential valuation of the company fell along with the price of cryptocurrencies this year.

Although the company hasn’t disclosed its financials, it’s believed that Coinbase is profitable, which also adds to its paper valuation coming into its Series E round.

To date, Coinbase has raised $225.3 million. Investors include Section 32, Balyasny Asset Management, Draper Associates, Battery Ventures, Greylock Partners, Tusk Ventures, Spark Capital, Bank Of Tokyo, USAA, DFJ, BlockChain Capital, The New York Stock Exchange and about two dozen others.

Image: Coinbase

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