The American cryptocurrency exchange Coinbase has become a leading player in the industry. In the summer of 2017, the company was valued at $1.5 billion. After that, many new people entered the market and wanted to buy cryptocurrency on their exchange.
Now, Coinbase is in talks with the British hedge fund Tiger Global about a possible $500 million investment, according to the tech site Recode.
The deal would give Coinbase a valuation of $8 billion, which would make them one of the highest valued startups in the United States.
Possible IPO in the future
In a deal where the hedge fund invests $500 million in Coinbase, $250 million would go to their treasury and $250 million to buy out existing shareholders in Coinbase, Recode writes.
It has been speculated that Coinbase is preparing for a possible IPO. Under 2018, the crypto exchange has been active in hiring new people. Recently, Coinbase recruited Chris Dodds from the traditional brokerage company Charles Schwab to join its board, Recode writes.
