As Coinbase is expanding to new regions, it needs heavy investments. The Bitcoin wallet services provider is not leaving any stone unturned to fetch funds; towards this it held a fund raising program wherein it received a hefty $75 million. The fund has come from DFJ Growth which sees huge potential in the Bitcoin economy.
According to Coinbase, this is the largest round ever raised by a Bitcoin startup which it is going to use for funding the operations. The company says that the cash will be used to continue driving mainstream, global adoption of Bitcoin. Though this sounds a vague, self-serving goal, it is being lauded as it is expected to help future startups in the Bitcoin space.
A spokesperson for the company said that a significant part of mainstream adoption is taking Bitcoin beyond the US especially to countries in the developing world. According to the spokesperson, Coinbase expanded to 19 countries in 2014 and plans to be in at least 30 by the end of 2015.
Nonetheless, Coinbase claims to have raised $106 million to date which is quite handsome an amount for any Bitcoin startup. As the company claims that it makes it easy for the average person and business to use the digital currency Bitcoin, the observers believe that it has the potential to make Bitcoin popular around the world.
There were several participants from Wall Street institutions like the New York Stock Exchange that showed their interest in funding the company. Then there were former Citigroup CEO Vikram Pandit and former Thomson Reuters CEO Tom Glocer who made personal investments. Coinbase informed that investors all put in at least $1 million.
To Reach More than 30 Countries by the End of the Year
The company says that it tracks a metric called “non-trading transaction volume,” and it’s at least tripled over the past year to about 12 percent of all activity on the network. According to the company, one of the things that have helped has been the growing number of merchants adopting Bitcoin like Expedia and Intuit.
However, now there are at least a dozen merchants doing over $1 billion in annual transactions accepting Bitcoin. Coinbase says that the funding will go toward building more of a mobile presence with a lot of activities. As the company sees huge potential in the developing world, a lot of activities will be promoted to bring in new users.
Coinbase says that as would-be users of Bitcoin live in the developing world, where mobile access to services is much more paramount, the digital currency has huge scope. It is available in 19 countries; however, with the funds floating in it wants to reach 30 by the end of the year.
To contact the reporter of this story: Deepak Tiwari at firstname.lastname@example.org