Coinbase is set to conclude a new round of funding to bring in $300m extra – but primarily because it’s expecting a bit of rain…
Earlier this week came the news that cryptocurrency exchange Coinbase was on the hunt for money. Against the backdrop of an $8bn valuation for the company, it launched a Series E funding round to try and raise a further $300m in investment.
Rumours have been rife in recent times of a Coinbase IPO, and the new funding round didn’t dampen those at all. But a surprise explanation for it has now come from the company’s vice president of corporate and business development, Emilie Choi.
In a conversation with CoinDesk, she admitted that “we didn’t need to raise it”. Which immediately begs the question as to why the company did. “We want to have money for a rainy day”, she explained. “To be able to act on any opportunities that we think are going to be really important”.
That’s a lot of rain the company is expecting. With annual profits already over $1bn, it must be anticipating a fair amount of bad weather.
The new funding is primarily going to be used to add support for new coins and tokens across Coinbase, along with supporting a growing interest in stablecoins.
Choi also calmed those IPO rumours, at least for the time being. When asked if a public offering was on the cards, she replied that “whenever we feel ready to be a public company, we will do that”. It feels like a matter of when rather than if, but that IPO doesn’t look like it’s coming anytime soon.