Cryptocurrency companies have been raising funds to expand their operations in recent months as the market continues to grow
Paradigm, the cryptocurrency investment firm founded by Coinbase’s co-founder, is set to raise more than $1 billion in an upcoming funding round. Sources close to the matter revealed this to CoinDesk as the firm seeks to expand its operations.
According to the report, the funding round is set to close on 12 November, and the firm wants to raise $1.5 billion from investors before that period. The funds will be used to invest in startups as the cryptocurrency and blockchain sector continues to record massive growth.
The investment firm is seeking to raise an additional $1.25 billion to $1.5 billion from general partners over the coming weeks, the sources added. With the expected funds comes an addition to the Paradigm team. Per the report, Paradigm has hired Matthew Mizbani from hedge fund Coatue Management to serve as a partner of the firm.
Mizbani is vastly experienced in the financial world, having worked at Morgan Stanley and Two Sigma. One of the sources confirmed that Mizbani was specifically hired for the new fund and is set to play a crucial role in the investments the firm makes moving forward.
The cryptocurrency space has been experiencing massive growth over the past few months, leading to an increase in investment in the space. According to The Block Research, the cryptocurrency space received over $8 billion from private investors in the third quarter of the year. The $8 billion was spread across 432 deals.
The investment rolled in despite the prices of Bitcoin and other cryptocurrencies underperforming during the third quarter. Bitcoin struggled around the $40,000 region for the best part of the quarter after dropping below $30,000 in July.
However, the market has started to recover, and Bitcoin is now trading above the $57,000 level. If the current market conditions persist, the leading cryptocurrency could rally further and touch the $60,000 mark over the coming days.